Council wrongly stopped allowance payments after agreeing to provide adoption support for two sisters for life, Ombudsman finds

The investigation upheld all of the complaints brought by the adoptive parents, (Mr and Mrs X), and found fault with the council's actions.

Outlining the background to the case, the Ombudsman said Mr and Mrs X adopted two sisters, Miss Y and Miss Z, in 2008.

Miss Y and Miss Z both have a rare neurodegenerative condition. The life expectancy of children with this condition is around 15 years.

Mr and Mrs X said that when they adopted Miss Y and Miss Z, the council agreed to pay an adoption allowance of £250 per week for each child for their lifetime.

The council did not assess or review Miss Y and Miss Z’s support for 10 years. However, in 2020, shortly after Miss Y’s 18th birthday, the council stopped her adoption allowance.

Mr and Mrs X contacted the council to raise concerns about the implications of this and in November 2020 the council reinstated the payments and increased them to £300 per week in recognition of the need.

The council stopped Miss Y’s allowance again in December 2022, without warning. When Mr and Mrs X contacted the council, it reinstated the payments for a period of four weeks and told them the payments could not continue.

Mr and Mrs X made a formal complaint in January 2023.

The council acknowledged Mr and Mrs X’s complaint but “did not respond substantively”, said the Ombudsman.

Mr and Mrs X chased the council for a response in March 2023.

The council’s response noted that lifetime post adoption support was not included in Miss Y and Miss Z’s post adoption support plan.

According to the report, the council said financial support was only agreed for three years post adoption, with lump sums for purchasing a vehicle and adaptations to their home.

The council acknowledged it had not always completed annual reviews, but a review had taken place in November 2022. This had identified that Miss Y's post adoption support should cease as she was over 18 and that Miss Z’s would be reduced following a financial assessment.

Later in the year, the council confirmed Miss Z’s financial support would continue at a rate of £305.50 until her 18th birthday, and then end in accordance with legislation.

Mr and Mrs X’s complaint progressed through stage 2 and stage 3 of the statutory complaint process. The stage 3 panel did not consider the stage 2 investigation report stood up to scrutiny and recommended the council appoint a new stage 2 investigation team by 5 January 2024.

The new stage two investigation agreed the following heads of complaint:

1. the adoption allowance payments for Miss Y should not have been stopped as the local authority had promised in 2009 that support for both Miss Y and Miss Z would be for life.
2. the council have not completed reviews of the adoption allowance, as set out in “The Adoption Support Services Regulations 2005.”
3. Miss Z’s adoption allowance payment has been changed by the council without any explanation why.
4. having been advised that the adoption payments for Miss Y and Miss Z are not lifelong, Miss Y’s has been stopped and that Miss Z’s will be stopped when she turns eighteen, and the council have not supported them or provided any guidance or options that will enable them to care for the sisters in the future.

The stage 2 investigation supported Mr and Mrs X’s desired outcomes of reinstating Miss Y’s lifelong payments, backdated to when they stopped, and for Miss Z’s payments to continue to be paid lifelong following her 18th birthday.

The investigation recommended the council:

• make a payment to Mr and Mrs X to acknowledge the distress and time and trouble of having to go through another investigation;
• calculate a financial remedy that takes account the lack of annual review between 2009 and 2019 and the loss of uplifts in support payments, including interest;
• a good will payment to recognise the lack of reviews from 2009 to 2019;
• undertake a formal review with input from adult social care and health services where the family live. This should include a detailed financial assessment.

The council accepted the stage 2 investigations findings in relation to complaints 2 and 4 but did not uphold complaint 1 and only partially upheld complaint 3.

The stage 3 panel reviewed complaints 1 and 3 and unanimously upheld both. They were satisfied the council had agreed to pay lifelong allowances and that Miss Z’s allowance had been changed without notice.

Mr and Mrs X complained to the Ombudsman about the council’s conduct.

The Ombudsman said: “The council have confirmed to us that it does not accept that it agreed to pay adoption allowances for life for both Miss Y and Miss Z. We find this to be a fault as it is not open to the council to disagree with the findings of the Panel. However, even if the council did agree that this agreement was reached, it is clear that the council is unwilling and/or unable to continue to honour this agreement.

“The Adoption Support Services Regulations 2005 specify that a council is prevented from paying adoption financial support beyond a young person’s 18th birthday unless they are in full time education, which is not the case here.”

The Ombudsman noted that the Regulations do not provide “any discretionary basis” for payments to continue beyond a young person’s 18th birthday.

The Ombudsman continued: “As a result, there is clearly a dispute between the council and Mr and Mrs X as to whether or not the council can or should lawfully make these payments for life. We have no power to intervene and resolve a dispute of this nature and so we do not consider it appropriate to make recommendations that the council continue to pay the allowance for Miss Y and Miss Z’s lifetime.

“However, it is clear there is significant injustice arising from the council’s faults which have not been fully remedied through the statutory procedure. In these circumstances we can ask the council to make a payment to symbolise and acknowledge the distress or difficulties Mr and Mrs X have been put to.”

The Ombudsman observed the following faults:

• “The council’s failure to review the adoption allowances between 2009 and 2019 as agreed, meant there was uncertainty about whether the payments should have increased sooner.
• “The delays and failings in the complaint process have exacerbated Mr and Mrs X’s distress and uncertainty regarding their future. Mr and Mrs X made a complaint in January 2023, but the whole process was not completed until late December 2024.
• “The stage 2 investigation and stage 3 panel both upheld all of Mr and Mrs X’s complaints. However, the council disputes the findings and continues to assert there was no commitment to lifetime allowances. While the regulations allow the council to respond to the panel’s recommendations, they do not permit the council to disagree with the panel’s findings.”

To remedy the injustice caused, the council was recommended to:

• Apologise to Mr and Mrs X;
• Pay Mr and Mrs X £2,000 to recognise the significant uncertainty, distress and difficulties they have experienced as a result of the council’s failings identified through the statutory complaints procedure;
• Pay Mr and Mrs X £500 to acknowledge the uncertainty, distress and time and trouble of having to go through a second stage 2 complaints investigation and the delays this caused.

According to the Ombudsman, the council has since agreed to the recommendations.

Luton Borough Council has been approached for comment.

Lottie Winson