Source · Select Committees · Education Committee
Recommendation 76
76
Acknowledged
Improve financial and housing support for care leavers, including Universal Credit and bursaries.
Conclusion
The Department for Education should work with other relevant departments, including the Ministry of Housing, Communities and Local Government and the Department for Work and Pensions, to review the financial and housing support available to care leavers and improve it where needed to ensure that care leavers are not left to struggle financially after turning 18. This should be published by the end of 2025 and include: increasing the levels of Universal Credit for care leavers aged under 25; increasing education bursaries; council tax exemptions; and introducing rent guarantor schemes. There should be no cliff-edge on turning 18. (Recommendation, Paragraph 195)
Government Response Summary
The government has re-established the Care Leaver Ministerial Board to coordinate support. While mentioning a general Universal Credit increase and existing local authority schemes for financial support, it does not commit to a specific review of financial and housing support for care leavers with a 2025 publication deadline or to the recommended specific increases or schemes. It is reviewing how to ensure more care leavers can access local support.
Government Response
Acknowledged
HM Government
Acknowledged
To ensure coordinated support for care leavers, the Government has re-established the Care Leaver Ministerial Board. This board brings together ministers from across departments to explore actions and improve outcomes for care leavers. Recognising the financial pressures they face, the Government recommends that local authorities provide the leaving care allowance at a minimum of £3,000 and continues to offer bursaries to support education and training. Additionally, the Universal Credit Bill, subject to Parliamentary approval, proposes the first sustained above-inflation rise in the basic rate of Universal Credit since its inception, benefiting both new and existing claimants, including those under 25. Universal Credit also includes tailored elements to support those with additional living costs, such as housing, childcare, and disability-related expenses. Single care leavers under 25 may be eligible for the one-bedroom Local Housing Allowance rate, helping them live independently. Many local authorities also offer extra financial support, such as Council Tax exemptions and rent deposit or guarantor schemes. The Government is currently reviewing how to ensure more care leavers can access this local support.