In prior blogs, consideration has been made of national redress schemes and recommendations for how they can be improved. This blog considers two local authority schemes - both of which have now concluded - but, as is ever the case, lessons can be learned from prior schemes. 

Lambeth Children’s Homes Redress Scheme

Lambeth Redress Scheme (LRS) was established to pay out compensation to people who were abused or lived in fear of being abused while in Lambeth’s care as children. LRS was for those who lived in or visited a Lambeth children’s home (including those at Shirley Oaks) or attended Shirley Oaks Primary School. 

It published its most recent update on 31 March 2024 having closed to new applications on 1 January 2022 with a final total of 2,240 applications having been made as at the closing date. As is the case with most redress schemes, both national and private. there tends to be a surge in applications when a scheme opens and again when it is due to close. LRS was no different with a total of 479 new applications being received during 2021 (January to December) with 223 of these (47%) being received in the final month of December (including those applications received on the last day of 1 January 2022).

The total LRS expenditure to 31 March 2024 is c.£147.3 million, comprising:-

• £100.9 million paid in redress compensation directly to applicants (£15.9m Harms Way & £85.0m Individual Redress),
• £16.4 million in respect of applicants’ legal costs (paid to solicitors), 
• £10.6 million on applicant expenses, instruction of medical experts, deputyship costs, and social records chronology,
• £2.4 million on counselling services & Pre-Scheme SARs
• £8.2 million for the council’s own legal costs in processing applications, 
• £8.8 million on administrative & staffing costs.

The final estimated costs associated with all the applications received to LRS is still expected to be within the projected range of £153m to £175m.

A breakdown of the application types received is shown in the following table: -

*Individual Redress only applications relate to applicants who are either deceased or were a visitor to a Lambeth Children’s Home.

Despite commentary when LRS was launched that applicants might confine themselves to applying for a Harm’s Way payment, to avoid retraumatising themselves by making the more detailed and in-depth application required in order to secure an Individual Redress Payment, this has not proved to be the case with almost 80% of all applicants applying for an Individual Redress Payment.

LRS was in the main very timely and effective in dealing with applications, over 80% of stage 1 applications/Harms Way Payments were processed in three months or less. 68% of stage 2 applications/Individual Redress Payments within the Scheme were processed in 18 months or less.

LRS offered applicants the opportunity to access a number of non-financial redress benefits such as a letter of apology, a meeting with a senior representative of the council, access to a counselling service and access to specialist advice and help with issues including housing, welfare, benefits, further education and employment. 

As at the end of March 2024 a total of 772 letters of apology had been requested, prepared, and sent to applicants. A total of 67 applicants had requested and had a meeting with a senior representative of the council. 

Applicants also requested access to specialist advisory services, which were provided as part of the non-financial redress provided and the details of the same are as follows:-

• Housing                       199 referrals
• Further Education       63 referrals
• Employment                47 referrals
• Welfare & Benefits      42 referrals

Total referrals                        351 referrals

The arrangements for the provision of all the non-financial services available under the LRS will came to an end on 31 December 2024. Access to the counselling support service set up by the council will continue through to the end of March 2025. Overall LRS has been very successful, it has been able to maintain good processing timescales over its lifetime and unusually looks like it will come in on budget if not slightly under. The success has been attributed to it being well resourced both financially and in terms of the quality and skillset of the personnel who operated it. 

Islington Support Payment Scheme

The Islington Support Payment Scheme (ISPS) was introduced to support people who experienced abuse while placed by Islington Council in its children's homes between 1966 to 1995. The ISPS offered a straightforward way for eligible survivors to apply for a support payment of £10,000 and minimise the need to relive past trauma or the risk of further trauma or harm. The scheme opened on 31 May 2022 and closed on 31 May 2024.

In addition to the £10,000 payment the ISPS also offered other types of support such as: -

• accessing trauma support
• accessing your care records held by children’s services and supporting you to understand your time in care
• work and learning
• community and health and wellbeing activities
• housing and welfare advice and support

The most recent information on payments made by the ISPS was published in April 2024 when Islington Council advised that it had paid out £2.7 million to 270 survivors, noting that 95% of applicants had received payments.

The ISPS has faced some criticism, it has been claimed that it has been inconsistent in its decision making, rejecting applications despite those applications having no less proof than others who were approved.

More recently the ISPS has come under fire about the decision to end the associated counselling support service with survivors saying that they understood that such counselling would be available on an ongoing basis. However, notwithstanding those criticisms, it was an efficient and clear scheme establishing an alternative in its payment model to those which are often more complicated.