The child, in this case from what I have read (obviously I am not party to the OP's case notes), IS better off with the mother, though the mother may need some support if she is hospitalised. That support would have to take the form of Respite Care, granted - but that should not be a barrier to the child being ordinarily resident with the OP.
It isn't the OP's fault that she doesn't have anyone to take in the child either, you know.
And HOW can less contact be better for the child if they are in FC for a reason that is NOT neglect or abuse? It is better for SS pocket, in as much as they would have to spend time and money supervising longer contact - but SS NEED to remember that this child ISN'T in FC due to neglect or abuse, but parental illness.
So, the child should be taken from it's disabled parent because there isn't funding to support that parent to keep the family together? Because I'm sure every SW I have heard has said that they do everything they can to keep the family together - but if they aren't providing adequate support for a disabled parent, then they AREN'T doing everything they can to keep that family together.
And the reason I am 'on my soapbox' as you put it - is because I have been on the receiving end of SS as a disabled Lone parent, when I asked them for some help. They basically said to me that I either went away quietly and didn't ask for any help in writing, and got on with things on my own, or they would start care proceedings as that was their only 'financial' option.
So the reason I am 'on my soapbox' is because I have personal, first hand experience of a situation similar to this. I am just lucky because I have a good circle of friends who stepped in to help me.
Finances should NOT be the deciding factor in whether to keep a child in FC if they are not being neglected or abused. It should be down to need, and a disabled lone parent is going to NEED more support to cope in times of illness. It DOES NOT mean that they are an abusive or neglectful parent.
And I have experienced VERY outdated, antiquated attitudes towards lone parents with epilepsy in SS. Some people still think that seizures are a MH issue, and some of THOSE people still work for SS. Not all SW's, but some. And it only takes it being the ONE that is allocated your case. Just saying.