Care Leaver Payment: consultation analysis

8 Impacts of the payment (Q7 to Q8)

8.1 The chapter presents views about the potential impacts of the Care Leaver Payment. The consultation paper included two open questions inviting respondents to discuss both positive and negative impacts.

Question 7: What might this payment help young people achieve when they are moving on from care? Please share your views.

Question 8: Do you think this payment could have any negative impact on young people leaving care? Please share your views.

Potential positive impacts of the payment (Q7)

8.2 Question 7 asked what the Care Leaver Payment might help young people to achieve when they are moving on from care. This was an open question and, altogether, 65 respondents – 32 organisations and 33 individuals – provided comments.

8.3 In general, comments focused on a relatively small number of specific areas. Respondents saw potentially positive impacts in relation to:

• Securing and furnishing accommodation: including funding deposits for tenancies; payment of rent; purchase of household goods, carpeting, bedding, furnishings, and paint for decoration; being able to ‘make their house a home’; or saving for a house deposit
• Paying for daily living expenses: including for utilities and other household bills; food and clothing; or a car, bicycle or motorbike
• Funding education and training: including driving lessons
• Supporting the transition into employment: including helping with travel costs; costs of attending interviews and / or setting up a business; buying tools or equipment for work or a trade
• Improving wellbeing and establishing and maintaining social connections: including participating in sport and recreation; joining a gym; having meals out or trips to the cinema; attending gigs; beauty treatments; starting a hobby; buying a computer or other digital device(s); participating in community life; attending counselling; buying art materials; or owning a pet
• Enabling any other aspirations: including travelling; taking a gap year; paying for a passport; having a holiday with friends or family; experiencing something they have always wanted; and ‘having the opportunity to access their own vision and dreams for themselves’.

8.4 Regarding the last two points, respondents argued that it was important that young people with care experience should be able to spend some of the money on things that will bring joy to their lives, as well as covering more basic needs. This, it was noted, was consistent with Article 31 of the UNCRC which sets out the right of children to rest, leisure and play. Respondents cautioned against a view that young people with care experience – many of whom will come from deprived communities – may not spend the payment ‘responsibly’. Instead, they emphasised that these young people should be treated with respect and given independence and financial freedom to make their own choices, with support from people they known and trust.

8.5 More generally, some respondents said that the Care Leaver Payment would help reduce the stigma associated with having care experience, enabling young care leavers to live like their peers who are not care experienced. It would also give young care leavers a sense of responsibility, independence and ownership in making their own decisions; skills in budgeting and managing money; and a sense of worth and motivation.

8.6 Finally, one individual noted a somewhat different potential impact from the payment, suggesting it could possibly be used as a tool to get young people who are hard to engage to work with services.

Potential adverse impacts of the payment (Q8)

8.7 Question 8 asked respondents if they thought the payment could have any negative impact on young people leaving care. This was an open question and, altogether, 67 respondents – 34 organisations and 33 individuals – made comments.

8.8 The two most common concerns raised by respondents were that some young people (i) may spend their payments in ‘unsafe’ ways, putting themselves at risk of harm (for example, through drug or alcohol use or gambling), or (ii) may be financially exploited – i.e. tricked or forced into giving the money to others. There were concerns that young people may spend the money ‘recklessly’ and ‘have nothing to show for it’ which could have a knock-on negative effect on their pride, sense of achievement and self-esteem.

8.9 Respondents emphasised that the likelihood of these risks would depend on the individual young person and their circumstances: some would be able to manage the funds with minimal help; others would be more vulnerable. In general, respondents thought any risks could be mitigated by ensuring that young people have the skills necessary to budget and manage their finances, and ongoing guidance and support from someone they trust to plan how to spend the payment. Some respondents said they saw no potential adverse impacts arising for young people in receiving a Care Leaver Payment so long as support is provided to them in planning how to spend it.

8.10 Some respondents suggested that there should be a risk assessment carried out for each young person before the payment is made and that safeguarding measures should be put in place for those who are vulnerable. At the same time, there was also a recurring view that any vulnerabilities of potential negative impacts should not be used as a justification for restricting access to the payment, or to dictate how and when it is spent.

8.11 A third potential negative impact, mentioned frequently, related to the way in which this payment would relate to and interact with other payments and supports that young care leavers are entitled to – specifically welfare benefits, further and higher education grants, housing support, etc. This issue, and the steps that could be taken to prevent this impact, have been discussed – both in the previous chapter (Chapter 7) and in Chapter 9.

8.12 Occasionally, respondents identified what they saw as other potential adverse impacts, saying that the payment might:

• Encourage young people to leave supported placements before they are ready
• Come at a time when a young person is not able to use it effectively to enhance their life and opportunities
• Give young people a sense that they do not need to earn money.