County council pays grandmother tens of thousands of pounds after failings left her facing "financial hardship"

A report compiled by the local government watchdog found that the woman, identified only as Ms X, was forced to “borrow money” and “take out loans” due to the cost of looking after her grandchildren – known in the report as Y and Z. The council failed to complete annual reviews of what is known as a Special Guardianship Allowance between 2008 and 2020.

The local authority has now paid out more than £37,000 after accepting it failed to properly review the allowance between 2008 and 2020. The failings led to Ms X facing mortgage arrears and other issues.

The report stated that Ms X and her husband took care of their granddaughter, Y, from 2008. They were paid just £24.08 a fortnight for doing so. Ms X told the Ombudsman she asked the council to complete annual reviews of the allowance every year, but the council did not do so, according to the report.

The report goes on to say she took care of another granddaughter, Z. However, the council awarded a special guardianship order (SGO) allowance of more than £200 for Z and completed annual reviews.

In 2019, Ms X “formally complained” about the failure to review the allowance for Y – but the council did not provide a “formal response”. In 2020, the council increased the SGO allowance to £318.78 per fortnight “without explanation.”

An explanation was provided when Ms X’s solicitor contacted the council, and the council launched an independent investigation into the complaint. She later contacted the Ombudsman, resulting in a so-called stage 3 complaint being lodged.

The report states that, following the findings of an independent panel, Ms X was paid a total of £33,656.95. This comprised of £29,900.32 in backdated SGO Allowance from October 14 2015 to December 1 2019 and £2,456.63 to pay off half of Ms X’s mortgage arrears she had been left in due to the financial hardship she faced.

It also included a £300 goodwill award promised on August 22, 2022, and a further £1,000 goodwill award. The council later paid out a further £2,419 for the year 2008 to 2009 based on new financial information.

The Ombudsman said the council had been “at fault” for not providing Ms X with a suitable amount for her SGO allowance. However, it acknowledged that the authority had paid out significant sums in response to this failure.

Furthermore, the council has committed to reviewing historic SGO allowances and will provide a back payment.

Explaining the changes the council had made since the issue, a spokeswoman for the local authority said: “We have apologised to the family involved in this case and quickly drew up an action plan to address the issues raised in the report and to implement the recommendations made. This includes making sure all special guardians receive written outcomes of their annual reviews and agreeing a process for reviewing historic allowances.

“Our dedicated Kinship Assessment and Support Team also work closely with special guardians and other kinship carers to provide a wide range of practical, emotional and financial support.”