A Duty of Care: How the Benefits System Fails Care Leavers

Care leavers, those who have spent time in the care system and transition to independence between the ages of 16 and 25, face challenges far greater than their non-care-experienced peers. With the local authority acting as their ‘corporate parent,’ the state has a duty to support these young people as they embark on their journey into adulthood. However, the current benefits system, particularly the Universal Credit (UC) scheme, falls short of this responsibility, often leaving care leavers struggling to make ends meet during a critical period in their lives.

The Struggles of Independent Living

For many young adults, the transition to independent living is gradual, supported by family networks that can provide financial and emotional assistance. However, care leavers typically do not have this safety net. The state, as their corporate parent, is expected to fill this gap, but the current system does not adequately address their unique needs.

One of the most significant challenges care leavers face is financial insecurity. Unlike their peers who can often rely on family for financial support, care leavers are entirely dependent on the benefits system once they leave care. The standard rate of Universal Credit for under 25s is lower than that for those aged 25 and over, based on the assumption that younger people can rely on family networks. However, this assumption is deeply flawed when applied to care leavers, who are often entirely on their own.

The Impact of a Lower Universal Credit Rate

The standard monthly allowance of Universal Credit for under 25s is £311.68, compared to £393.45 for those 25 and over. This difference may seem small on paper, but over the course of a year, it amounts to nearly £1,000. For a young care leaver who is trying to establish themselves, find stable housing, and possibly pursue education or employment, this shortfall can be devastating. It can mean the difference between being able to pay rent or facing homelessness, between buying enough food or going hungry, between maintaining mental well-being or experiencing severe stress and anxiety.

Many care leavers, like Claire*, find themselves in dire situations because of this inadequate financial support. Claire, a young woman who left care and began living independently, struggled with basic living costs. She found herself with just 9p left to her name, two weeks before her next UC payment, with no phone credit and dwindling electricity. In such situations, care leavers often have to rely on food banks and fuel vouchers to get by, highlighting the severe limitations of the current system.

A System Out of Step with Reality

The current benefits system’s treatment of care leavers is not just unfair—it is also out of step with other areas of policy that recognize the unique needs of this group. For example, care leavers receive a higher rate of Local Housing Allowance (LHA) than most under 25s, reflecting the reality that they are more likely to need independent living arrangements. Some local authorities also exempt care leavers from paying council tax, acknowledging that this group faces greater financial challenges.

However, the lower UC rate stands in stark contrast to these policies. While the government has made some provisions for care leavers in certain areas, the benefits system has not kept pace, leaving many care leavers without the financial support they need to thrive.

The Human Cost of a Failing System

The consequences of the benefits system’s shortcomings are far-reaching. Care leavers are more likely to experience financial hardship, housing instability, and mental health issues than their peers. In 2023, 41% of care leavers aged 19 to 21 were not in education, employment, or training (NEET), compared to just 12% of the general population aged 18 to 24. This disparity highlights the significant barriers care leavers face as they attempt to build independent lives.

Housing insecurity is a particular concern. Many care leavers have experienced instability throughout their childhoods, moving between multiple placements. This instability often continues into adulthood, as care leavers struggle to secure and maintain housing. In England, the number of care leavers aged 18 to 20 facing homelessness increased by 33% between 2018/19 and 2022/23, a troubling trend that underscores the need for better support.

The Need for Reform

Given the significant challenges care leavers face, it is clear that the current system is failing them. The government must recognize the unique needs of this group and reform the benefits system accordingly. Increasing the UC rate for care leavers to match that of those aged 25 and over would be a significant step in the right direction. This change would provide care leavers with the financial stability they need to focus on building their futures, whether that means pursuing education, securing stable employment, or simply managing the day-to-day costs of living independently.

There is already some movement toward recognizing the need for change. The House of Lords recently debated the issue, and the Lord Bishop of Manchester introduced a Private Members’ Bill to increase the UC rate for care leavers to the over 25 rate. While this bill represents a positive development, it is essential that the conversation continues and that this issue is brought before the Commons for further debate.

Conclusion: Prioritizing the Future of Care Leavers

As a society, we have a duty of care to those who have grown up in the care system. These young people have faced challenges that most of us cannot imagine, and they deserve the support they need to build successful, independent lives. The current benefits system, particularly the lower rate of Universal Credit for under 25s, is failing care leavers at a critical time in their lives. It is time for the government to step up and ensure that care leavers receive the financial support they need to thrive.

By reforming the benefits system and providing care leavers with the same level of support as those aged 25 and over, we can help them overcome the challenges they face and build brighter futures. This is not just a matter of fairness—it is a matter of fulfilling our duty to care for some of the most vulnerable members of our society.

*All names have been changed