Calls to give care leavers same universal credit as those aged 25 and over

Care leavers under the age of 25 would have access to the same rate of universal credit as those 25 and over in new proposed legislation.

Currently, adults under 25 can receive £311.68 per month, while those 25 and over can receive £393.45 per month.

The Bishop of Manchester, the Rt Rev David Walker, has argued that care leavers should receive the same rate as those 25 and over, as they “don’t have the cushion of the bank of mum and dad”.

He argued that the under 25 standard allowance is justified by the fact that young adults usually have financial or housing support from their family, and pointed out that this is often not the case for care leavers.

His Universal Credit (Standard Allowance Entitlement of Care Leavers) Bill would see care leavers bumped up to receiving the full standard allowance currently reserved for those 25 and over.

“No family home”

Bishop Walker told the House of Lords: “Financial dependence on older relatives continues longer into adulthood than it has in previous decades.

“About half of 24-year-olds still live with their parents, but actually it’s less than a fifth of all care leaders in that 19-21 age group who are with a parent, relative or foster carer…

“For a very large number of young care leavers, there is no family home to go back to. The state has been their family and I believe it should accept some ongoing responsibility.”

He added: “Equalising universal credit is one small thing the state could do to perhaps exercise its extended parental role, to put those young care leavers on a path that’s a bit closer to that of their peers – and this Bill is a way of achieving that.”

He told the upper chamber that, for those living independently, the under 25 rate is “not sufficient to meet their needs”, noting findings from the Joseph Rowntree Foundation that found that the standard allowance is about half what is needed to afford essentials like food, water and clothing.

He argued that giving care leavers the extra £81.77 per month that those who are 25 and over receive would help reduce the risk of poverty, homelessness, debt and mental ill health.

Support

Meanwhile, he noted that the sum of £393.45 that those 25 and over receive each month is “not dissimilar” to what members of the House of Lords can claim each day.

Experiencing the care system is “one of the key adverse childhood experiences that can exacerbate problems in later life”, Bishop Walker said, adding: “I believe they merit a higher level of support in those early years of adulthood”.

Backing the Bill, Labour peer Lord Watson of Invergowrie, said: “Care leavers are often expected to leave care before they are ready and without the support they need to make a positive start to adulthood…

“Young people have described leaving the care system as a cliff edge, being forced to leave home abruptly at 18, sometimes even younger, when crucial support, care and relationships fall away and they are expected to become independent overnight.

“Every parent should be asked: would this be appropriate for my child?”

He argued that denying care leavers the 25 and over standard allowance to “suggest that the essentials for living are somehow available more cheaply to those aged under the age of 25 and that’s clearly not the case”.

Former children’s TV presenter and Liberal Democrat peer Baroness Benjamin branded the measures in the Bill a “moral and economic necessity”, arguing that failing to invest in care leavers ends up costing the taxpayer much more over that person’s lifetime.

Responding, Labour frontbencher Baroness Blake of Leeds acknowledged the adverse experiences that many care leavers have dealt with and the need to support them as they transition into adulthood.

However, she argued that the Government “offers a range of services and support” for care leavers, including a higher level of housing allowance up to the age of 25 and Staying Put arrangements, whereby care leavers aged 18-21 who remain with former foster carers may be eligible for means-tested benefits.

Meanwhile, many local authorities exempt care leavers from council tax, there are bursaries and grants available for those who want to continue with education or training, and care leavers can also receive a one-off setting up home allowance.

Lady Blake said: “The Government does not believe this Bill is the best way to deliver all the support that care leavers deserve.

“The Government has committed to reviewing universal credit to make sure it is tackling poverty and making work pay, and we commit to listening carefully to all perspectives.”