Contribution
My Lords, I shall speak to Amendments 95 and 130 in my name, and in doing so I draw attention to my interest in the register as a member of the Financial Inclusion Commission. I think the amendments in this group are very important. They look in broad terms at the support that is available to care leavers—an issue which we all understand is incredibly important. I am supportive of pretty much all the amendments in this group, in particular Amendment 99 in the name of the noble Baroness, Lady Bennett, which is about a national offer to care leavers and how that relates to local offers. No doubt we will come back to that.
I had the privilege of attending an all-party group meeting recently where we spoke to a large number of care leavers. I think the noble Lord, Lord Watson, was there as well. I was very impressed with the presentations that these care leavers gave. One of them made the key point that they would like to see a national offer for all care leavers to ensure consistency. I asked them to send me some more details about what exactly it would entail, because this is a critical issue.
My Amendment 95 is a bit more specific. It would require local authorities to provide more clarity on the services they provide to care leavers to help them develop their financial literacy and thus access their financial entitlements. As we have heard, young people leaving care are much more likely to leave home at an earlier age than other young people and be forced to live independently, often before they are ready. That means managing bills, a tenancy and other financial responsibilities, and juggling that with education or starting employment, often without having any financial safety net to fall back on, which so many parents provide for their children. I know it is stating the obvious, but there is no bank of mum and dad for this group of youngsters to fall back on.
Too often, care leavers are not aware of the financial entitlements and supports available to them from the local authority, such as council tax discounts, higher education bursaries or, more broadly, welfare benefits. This lack of information can lead to them facing unnecessary financial hardship or falling into rent arrears or debt. We all know that, once you start falling into debt, it is a vicious cycle and so hard to get out. All of this has a huge impact on their well-being and security. Care-experienced young people often report that they feel unequipped, unprepared and unsupported to manage the financial responsibilities that come from living independently from such a young age, primarily owing to the lack of support or opportunity to develop the skills and knowledge they need on such basic things as budgeting, money management and broader financial understanding.
That is why the amendment, which would introduce a requirement on local authorities to publish information about the services they provide to support care leavers to develop their financial literacy as part of their local offer for care leavers—we can come back later to whether that should be part of a national offer—is vital and could make such a difference to their life chances. Such a change would create more transparency for care-experienced young people about the financial support available to them and would help to address one of the main challenges they face when moving into independent living.
Amendment 130, as I said in the previous group, is basically about extending Staying Put to the age of 25. We have already had that discussion; I never quite understand some of the mysteries of grouping, so quite why we are having it in a separate group as well I do not know. The noble Lord, Lord Watson, set out the case very well. I shall just add that, as we heard in some of our earlier debates, young people leaving care often face a disproportionate risk of experiencing homelessness or housing insecurity. Care-experienced young people are nine times more likely to experience homelessness than other young people, and statutory homelessness rates for care leavers have increased by over 50% in the past five years, which underlines why I think extending Staying Put to the age of 25 is so important. As we heard from the noble Lord, Lord Watson, on the previous group, it involves a pretty small number of care leavers. The costs of doing this would be fairly modest and I hope, from what we have heard in the spending review yesterday and today, that some space is opening up. So, really, I am asking Ministers whether they will think again.