Liverpool City Council failed to adequately pay or support around 340 carers for a number of years, according to an investigation.
Following examination by the Local Government Ombudsman (LGO),Liverpool City Council has agreed to backdate allowances for carers and undertake a review of its practices.
In light of its findings, the LGO has urged local authorities to ensure carers receive sufficient support.
Issues in Liverpool were raised after a woman who had been caring for her young nephew made a complaint that she had not received enough funding from the council. The LGO concluded the carer was owed over £10,000 by the town hall.
Executive director for investigations at the LGO, Nigel Ellis, said: ‘Many councils struggle to recruit carers to look after children who find themselves – for whatever reason – unable to be looked after by their parents. So it is only fair that these people, who do such a good job of giving children the chance of family life, get the benefits and allowances they rightly deserve.
‘I’m pleased to say that Liverpool City Council has quickly accepted it is at fault and has agreed to backdate the benefits to both the complainant and the 340 other carers affected.’
Cllr Jane Corbett, cabinet member for children’s services, said: ‘We are clear that special guardians should be paid the correct rate and we are now carrying out an urgent review to make sure that both special guardians and foster carers are being paid appropriately.
‘I have called for an investigation to find out how this situation came about and to ensure that nothing like this ever happens again.’