Highland Council may soon be facing a series of costly court actions because of their child maintenance allowance payments policy.

A leading solicitor claims that the council's policy is discriminating against carers who are not formally qualified foster parents.

There are currently no legal obligations placed on Scottish local authorities to award a full maintenance allowance to relatives responsible for children who are no longer in the care of their parents - usually because of family bereavement, abandonment or neglect.

Only certified foster parents are entitled to full maintenance allowances from the council's social work department.

But, in an unprecedented move, Glasgow-based solicitor Cameron Fyfe is representing two Ross-shire grandparents at the centre of the dispute.

The couple, who do not wish to be named, are in their late 50s and they have been looking after two children over a 10-year period.

They claim the reduced payment awards policy - used by almost every local authority in Scotland - is illegal, and they have received legal aid to challenge the council's payments policy.

Mr Fyfe said yesterday: "I am in negotiations with Highland Council to settle this dispute out of court. It may be that they will agree that their policy is inequitable and decide to settle, but if not it will require court action."

Mr Fyfe confirmed that he has been contacted by four similarly placed families who are interested in challenging the legality of the payments process in other parts of Scotland.

He added that a further legal aid application by the Ross-shire couple to cover the costs of a court case is likely to be granted.

Mr Fyfe is considering a challenge under either the Children's Act 1995 or the Human Rights Act 1998, which could see the Ross-shire couple claiming retrospective payments as far back as October, 1997.

They currently receive £35 a week for each of the two children, but this is understood to be half the level of payment made to foster parents.

Mr Fyfe added: "I am hoping for a final response from the council within the next month. It boils down to whether the council can argue whether a grandparent is not a social carer."

Highland Council confirmed yesterday that its payments policy had developed by custom many years ago, but still applied to a significant number of families throughout the Highlands. It is, however, under review.

A council spokesman said: "In Scotland there is no formal guidance on how welfare payments are made to children under the care of foster parents, as opposed to children who are under the care of persons other than foster parents.

"That is why we have agreed to review the payment structure in light of this case so that it is easy for people to understand, and to make sure that it is equitable."

He added: "The Association of Social Work Directors has commissioned a piece of work with a view to reviewing the payment structure."