Peers support law change to make ‘life-changing’ impact on young care leavers

Young care leavers would experience a “life-changing” impact under proposals to give them an extra £82 a month in universal credit, peers have heard.

The Bishop of Manchester, the Rt Rev David Walker, added there would be “very little difference” to the state of the UK’s finances if his Universal Credit (Standard Allowance Entitlement of Care Leavers) Bill became law.

The Bill aims to increase universal credit rates for under-25s who have lived in care and Mr Walker said it would cost taxpayers an estimated £25 million a year.

Currently, claimants who are single and under 25 can receive £311.68 per month, while those 25 and over can receive £393.45 per month.

The Bill would ensure the standard allowance entitlement of care leavers, once they turn 18, would match the amount available to claimants aged 25 or over.

£25 million

Mr Walker’s Bill cleared the House of Lords on Friday although it faces a battle to become law as it is not supported by the Government.

He said: “There are something like 92,000 care leavers in that 18-to-25 age bracket at any time.

“Whilst it’s hard to be precise how much this Bill would cost, the best estimate is probably it would add something like £25 million a year to the total costs on the Government.

“That would enable a young care leaver in receipt of universal credit to get an extra £80 a month, which is 25% more than they currently get.

“It will be life-changing for them, it’d make – I would argue – very little difference to the state of the nation’s finances.”

‘Right support’

Work and pensions minister Baroness Sherlock, replying for the Government, said: “Although I’m not in a position to support his Bill today, I do want to say that the Government is determined to make sure we offer the right support to care leavers.

“We already offer a range of safeguards and specialist services to support them.

“Care leavers under 25 can claim the local housing allowance rate of housing benefit, they can get specialist support with transitioning into adult claims, extra help in returning to education if they’ve missed out on that, and all kinds of support to help them develop and get into jobs.”

Lady Sherlock said there is “much more to do” and the Government is “taking steps” to improve support for care leavers and young people, including on finding accommodation and accessing services.

The Bill will now progress to the House of Commons although it is not guaranteed time to be debated further.