[1995] UKSSCSC CF_25_1994 (02 June 1995)
R(F) 1/96
Mr. P. L. Howell QC CF/25/1994
2.6.95
Child in care - child placed with grandparents - whether child "boarded out"
The claimant claimed child benefit on 19 July 1993 in respect of his granddaughter, whose mother was schizophrenic and unable to care for her. The child had been taken into the care of the local authority but had been placed with her grandparents under a "child plan" agreed between the local authority, the grandparents and the child's mother as from 19 July 1993. No payment was made by the local authority to the grandparents for caring for the child. An adjudication officer refused the claim for child benefit on the ground that the child was in the care of a local authority and boarded out with the claimant and so entitlement was excluded under regulation 16(8) of the Child Benefit (General) Regulations 1976. The tribunal allowed the claimant's appeal, holding that the child was not "boarded out" under regulation 16(8). The adjudication officer appealed to a social security Commissioner.
Held that:
- child benefit was clearly payable from 30 August 1993 because regulation 11 of the Foster Placement (Children) Regulations 1991 (which revoked and replaced the Boarding Out of Children (Foster Placement) Regulations 1988, which in turn revoked and replaced the Boarding-Out of Children Regulations 1955 referred to in regulation 16(8) of the Child Benefit (General) Regulations) only permitted a child to be placed with a person who was not an approved foster parent for a maximum of six weeks. The grandparents were not approved foster parents and thus from 30 August 1993 the arrangement under which the child was living with the claimant was not within the 1991 regulations at all (paras. 19-20);
- the claimant was also entitled to child benefit in respect of the initial six week period from 19 July 1993. The Commissioner accepted that by virtue of regulation 1(4)(b) of the Child Benefit (General) Regulations, the reference in regulation 16(8) of those regulations to the Boarding-Out of Children Regulations 1955 could be construed as extending to the Foster Placement (Children) Regulations 1991 insofar as the latter directly or indirectly re-enacted or replaced the former (paras. 22-25). However, for regulation 16(8) to apply, it was not enough to find that a placement had been made under regulation 11 of the 1991 Regulations. It was necessary in each case to look at the individual circumstances to see if they constituted a "boarding-out" (paras. 26 to 35);
- "boarding-out" was apt to describe an arrangement that had some commercial or professional aspect. It was wholly inapt to describe the arrangement in this case (paras. 36 to 37) which therefore did not fall within regulation 16(8).
DECISION OF THE SOCIAL SECURITY COMMISSIONER
The facts
"This is to confirm that Chloe has been looked after by her grandparents under regulation 11, Children Act 1989 since 19 July 1993 .... No payment has been made to [the grandparents] in the form of funding the placement as it is not this department's policy to fund such placements, except in very exceptional circumstances."
The arrangements made for Chloe
10. So from the end of the initial six weeks, the arrangement under which Chloe has been allowed to remain with her grandparents has been a less formal one, outside the 1991 regulations altogether. Under s. 23 Children Act 1989, a local authority having a child in their care must provide accommodation and maintenance for him or her but may do so in a number of ways, of which placing him or her with foster parents under s. 23(2)(a) is only one: alternatively they may maintain him or her in a community or children's home under s. 23(2)(b)-(e), or by s. 23(2)(f) make "such other arrangements as seem appropriate to them" and comply with relevant regulations. The informal arrangement at present in force between the local authority and Chloe's grandparents cannot fall within (a), but appears to me to be within the local authority's powers under the last head (f). The claimant and his wife are not local authority foster parents and have made it quite clear that they do not wish to be; they have taken Chloe in because she is their granddaughter and they love her, and they and the social workers consider this is the best arrangement for her, to provide the security and continuity which above all else she must need. It seems to me a very sensible and practical arrangement and none the worse for its lack of formality.
The statutes provisions
11. It has been necessary to go in some detail into the exact arrangements under which Chloe is living with the claimant and his wife, because their claim for child benefit for her has been rejected on the ground that as she is in the care of the local authority and has been "placed" with them, she counts as "a child boarded out by a local authority in the home of any person in accordance with the provisions of the Boarding-Out of Children Regulations 1955" for the purposes of the exclusion in reg. 16(8) Child Benefit (General) Regulations 1976, SI 1976 No. 965 ("the Child Benefit Regulations"). Apart from this provision, there is no real doubt that they would qualify for child benefit from 19 July 1993 as they are persons with the day to day responsibility for a child living with them, and their claim on 27 September 1993 was made within six months of the date the entitlement started: see ss. 141, 143 Social Security Contributions and Benefits Act 1992, and reg. 19(3) Social Security (Claims and Payments) Regulations 1987, SI 1987 No. 1968. Conversely if regulation 16(8) does apply, no child benefit can be paid to them and the adjudication officer's appeal must succeed.
12. The relevant provisions to explain the argument that no child benefit is payable are:
(1) s. 144(2) and Sch. 9 Contributions and Benefits Act 1992, under which no child benefit is to be paid in respect of a child in the care of a local authority in such circumstances as may be prescribed;
(2) reg. 16(5) Child Benefit Regulations, setting out a list of "prescribed circumstances" under which entitlement to child benefit for children in care is prima facie excluded: these include children being in care under orders made pursuant to the Children Act 1989 (and cover both interim and full care orders, of the kinds that have applied to Chloe continuously from 19 July 1993);
(3) reg. 16(6) ibid., by which the right to child benefit for a child within (5) is reinstated for the first eight weeks of local authority care, and for subsequent weeks if the child is actually living with the claimant throughout those weeks (or other conditions, not here material, are met);
(4) reg. 16(8) already referred to, by which the rights reinstated under para. (6) are taken away again, for any week in which a child in care is "boarded out by a local authority in the home of any person in accordance with the provisions of the Boarding-Out of Children Regulations 1955 or the Boarding-Out and Fostering of Children (Scotland) Regulations 1985";
(5) the 1955 Boarding-Out Regulations referred to in reg. 16(8): these were in force at the time of the Child Benefit Regulations in 1976, but revoked and replaced with substantial amendments in 1988 by the Boarding-out of Children (Foster Placement) Regulations 1988, SI 1988 No. 2184, the 1988 regulations being in their turn revoked and replaced with further amendments by the Foster Placement (Children) Regulations 1991 to which reference has already been made.
The adjudication officer's decision and the appeal to the tribunal
The present appeal
The main period: 30 August 1993 onwards
The initial period: 19 July to 29 August 1993
The first point: for 1955 read 1991?
(1) the 1955 Regulations referred to in reg. 16(8), made under the Children Act 1948, and revoked in 1988;
(2) the 1988 Boarding Out of Children (Foster Placement) Regulations, made under the Children Act 1980, and revoked in 1991;
(3) the 1991 Foster Placement Regulations, made under the Children Act 1989, which were the only ones of any effect on 19 July 1993.
The second point: for "boarding-out" read "placement"?
The intent of the legislation
Date: 2 June 1995 (signed) Mr. P. L. Howell QC
Commissioner