The role of local authorities
All local authorities (LAs) have a statutory duty to promote the educational achievement of the children they look after, regardless of where they live. This fits into their wider role as a corporate parent: LAs must strive to offer everything that a good parent would in order to make sure that the children they look after reach their full potential.
Revised DfE regulations and guidance on what LAs must do to discharge that duty came into force in April 2011. Follow the link to the DfE website at the bottom of this page for more information.
Promoting the financial capability of children in their care is not, therefore, an additional task for local authorities but is an integral part of existing work as corporate parents.
In addition to this paretning responsibiity the local authority has a duty to work with relevant partners to improve the wellbeing of children and young people.
This duty (which also applies to schools) is enshrined in the Children Act 2004. This defines wellbeing as relating to:
(a) physical and mental health and emotional well-being
(b) protection from harm and neglect
(c) education, training and recreation
(d) the contribution made by them to society
(e) social and economic well-being
Key questions for local authorities
Do the LA's plans include ways of developing young people's financial capability as a means of promoting their economic wellbeing? Are the specific needs of looked after children acknowledged and included?
Does the LA have a virtual school head and has he/she considered children’s entitlement to personal finance education?
Does the LA have a pocket money policy for looked after children?
Is financial capability included in looked after children’s review meetings as part of curriculum entitlement discussions and in the context of the school’s duty to promote pupils’ wellbeing, including economic wellbeing?
Does the LA newsletter to foster carers ever talk about financial capability?
Local authority Children and Young People’s Plans
The statutory requirement to produce a CYPP has been removed. Local authorities and their partners can decide how best to provide for the needs of their area. Local partnerships are free to publish their own strategic plan as they see fit, but the format and contents are no longer centrally prescribed.
Relevant partners are not be under any formal duty to ‘have regard’ to any voluntary plan. However, there are no government plans to remove the requirement for partnership working (enshrined in the ‘duty to cooperate’ section 10 of the Children Act 2004) from legislation. Local authorities are expected to continue to lead partnership arrangements that make sense for local people and services.
The Royal Borough of Windsor and Maidenhead has made consultation with children and young people in its care system a high priority in its Children and Young People’s Plan.
As part of developing an action plan to promote their economic wellbeing, pfeg consultant Fiona Ellis is working with local authority staff to explore with the young people priorities for personal finance education as well as the best way of learning about money.
The LA recognises this as important in order to reduce the gap in quality outcomes for children in care through the implementations of government requirements.
More information about local authorities consulting with young people can be found on the Young People pages.
