Only just picked this up JB - just want to check I have this right. From what you say you were assessed as kinship carers for yr gr/chdrn on a permanent basis. You say you have "just about finished the assessment" - does this mean that you have not yet been approved by the LA Fostering Panel. Can I ask the ages of the children. What you have been told about fostering allowances is quite correct. LAs have different rules about paying kinship carers (as gr/prts this is what you are of course) However they have a duty to pay you a Fostering Allowance for the day to day care of the children. Non kinship carers get a "fee" on top of the allowance in most cases.
Each child in the care system has to have a care plan and I am assuming that the LA care plan is for the children to be fostered by you on a permanent basis. It seems you have been thrown into a panic by the guardian mentioning SGO, but please try not to get too stressed about this. You may have the information that you need by now, but in case you haven't I will outline the difference between FC and SGO.
Permanent FC means that the children will live with you on a permanent basis, but the Parental Responsibility (PR) for the children will remain with the LA. There will be 6 monthly reviews by the LA to ensure all is well, and if you are in need of support/advice the LA fostering sw should be able to assist. The allowances (though possibly less than non-kinship carers) is mandatory i.e. it has to be paid and cannot be changed or stopped. These allowances continue until the children are 18.
SGO means that the children live with you on a permanent basis and the PR is granted to you. You will not have any further contact with the LA (although sometimes a 1 year Supervision Order can be attached to an SGO) to ensure things like contact are sorted out. However after this you are on your own, and will not be able to call upon the help of the LA as you would with fostering. Finances: As far as I am aware the LA only have to pay SGO allowances for 2 years, and after theat they cease. However there is a clause in the SGO Regs that says "no placement should break down for financial reasons" BUT you would have to issue judicial review proceedings if the LA did not pay and you needed the money. As legal aid won't be available you would have to pay any solicitors costs yourselves.
NB do check this out about funding under SGOs because I have heard that LAs are having to agree to pay the allowances under SGOs the same as they do with FCs but to be honest I don't think this is the case.
To answer your Qs - you would be more secure financially being approved as permanent kinship carers (as explained above)
As already stated payments would continue till children 18 so long as their permanent home remained with you.
Re: legal advice. Legal aid is not going to be available for cases like yours, but I don't know when that comes in - could be in already or very soon. However I don't think you need legal advice, and I will explain why below
Re: school placements: The placing LA should have sorted this out because the children are in their care. Sorry but all I can advise is that you press the LA to assist you in finding school placements in schools that are as near to your home as possible. It's difficult because I don't know the ages of the children.
The important thing that must know is that the you as the grandprts of the children decide whether you want to care for them on the basis of permanent fostering or an SGO. The LA sometimes gives carers the impression that it is them (the LA) who apply for the SGO but it isn't. You are the ones that have to apply to do this IF that is what you want to do. You don't really need a solicitor to do this. You have to write to the LA giving them 3 months notice of your intention toapply for an SGO, and after that if the LA are in agreement, they will carry out the comprehensive assessment. The only reason people in this situation need a solicitor is if they want an SGO and the LA don't agree.
The guardian was probably just "floating" the issue to see how you felt about it. She/he should however have explained fully the differences between FC and SGO to you.
SO please don't be distressed. The important thing is that you are giving your grandchildren a stable loving home. Don't let the guardian or the LA "bully" you into applying for a SGO unless that is what you want. Sorry "bully" is a bit srong, but I have seen it done. They will say (with some justification) that children should not spend the majority of their lives in the care system but what they don't say is that it is much cheaper for them, because they can close the case and save on social work time, allowances and support for yourselves.
My advice, given what you have said is to stick to permanent foster care. There will be nothing to stop you applying for an SGO in the future if this is what you think will be best. If you decide you want to foster you will be approved by the LA fostering panel (and yes they might ask about SGO) but stick to your guns. Then at the final hearing in JUly the LA will ask the Judge to make a Care Order on the children with a plan of permanent kinship foster care. You won't need to attend the hearing.
IF you decide to go the SGO route, the assessment will form part of the documents that the judge will see at the final hearing in July. If he/she agrees that you are suitable (and they almost always go along with the sw's recommendation) he will an SGO in your favour.
Finally, there are sites you can go on for info - British Agencies for Fostering & Adoption (BAAF) or Fostering Network. However I think it is the duty of the children's social worker to explain the difference to you. It isn't fair to put you into this position.
Hope that helps. Happy to help further if necessary