Young care leavers could receive additional financial support under new proposals, with an extra £82 a month in Universal Credit. The proposals, brought forward by Bishop David Walker via a Private Members' Bill, seek to address the financial challenges faced by young people who have recently left care by ensuring that they receive the higher standard allowance of Universal Credit.
Currently, claimants under the age of 25 are entitled to £311.68 per month, while those over 25 receive £393.45. The proposed change aims to increase Universal Credit rates for under-25s who have lived in care to the same rate as over-25s.
The Bill is an important and compassionate step towards addressing a significant gap in support for care leavers. By extending the higher standard allowance of Universal Credit to those under 25, it aims to provide these young people with more financial stability as they navigate the challenges of independent living after leaving care.
This is especially crucial as care leavers often face difficulties in securing employment and housing, and the additional support can make a substantial difference in their ability to manage day-to-day living costs.
This morning, Bishop David spoke about the benefits of the Bill, noting that there are approximately 92,000 care leavers in the 18-to-25 age bracket at any given time. He explained that the additional support would help young care leavers meet the challenges they face when transitioning into adulthood.
He said,
“It 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. While it’s difficult to precisely calculate the exact cost, the best estimate suggests the change would add around £25 million a year to the Government’s total expenditure. However, this is a small price to pay for the positive impact it would have on the lives of young people who have already faced significant challenges.”
The Bill has now passed through the House of Lords and will move on to the House of Commons for further consideration. If it becomes law, the changes could help ease the financial burdens faced by care leavers and support the most vulnerable young people in society in their efforts to build a brighter future.
Bishop David's Speaks in the House of Lords on Friday, 14th March 2025
Bishop David's Speaks in the House of Lords on Friday, 17th January 2025
In this speech, made when Bishop David brought forward his Private Members' Bill in an earlier session, he explains,
"Most young care leavers do not have the financial cushion of the “bank of mum and dad” or any equivalent. Some foster carers manage to provide an important bridging facility through the Staying Put and Staying Close schemes, but for a very large number of young care leavers there is no family home to go back to. The state has been their family, so it should accept some ongoing responsibility."