Care Leaver Payment: consultation analysis

11 Other issues and the need for other financial assistance (Q21 and Q22)

11.1 The consultation paper explained that legislation will be required to deliver the proposed Care Leaver Payment, and that this will be done through the Social Security (Amendment)(Scotland) Bill. It was noted that a further public consultation will be carried out in due course on the details of the payment and its administration prior to its implementation. The final two questions in the consultation invited views on any other issues related to the development and delivery of the payment, and the potential need for further financial assistance for young people with care experience.

Question 21: Is there anything else you think the Scottish Government should consider in the development and delivery of the payment? Please share your views.

Question 22: What other financial assistance might those with care experience benefit from in the future? Please share your views.

Other comments on the Care Leaver Payment (Q21)

11.2 Question 21 asked respondents for any other thoughts in relation to the development and delivery of the Care Leaver Payment. This was an open question and, altogether, 47 respondents – 26 organisations and 21 individuals – provided comments.

11.3 Many of the issues raised by respondents at Question 21 repeated or reiterated points made previously, including those related to:

• The need to consult widely with young people with care experience in developing payment processes
• Eligibility (the payment should be available to adopted young people and unaccompanied asylum-seeking young people)
• The need to provide care leavers with support in planning for and managing the payment (including giving young people options for agencies they can contact for support)
• The application process (the payment should be automatic without a need to apply; support should be provided to young people for applying; reminders should be sent to young people to tell them when they can apply; etc.)
• The need to regularly review the level of the payment to ensure it reflects increases in the cost of living
• The need to ensure that the payment does not result in young people with care experience being penalised (in terms of tax or eligibility for other benefits they are entitled to)
• The need for ongoing, holistic support for young people with care experience.

11.4 The three main topics raised repeatedly at Question 21 (and not discussed in any detail at earlier questions) related to (i) practical issues in relation to making the payment, (ii) the importance of ensuring that the payment can be administered properly, and (iii) the need to monitor and evaluate the impact of the payment on care leavers. Each of these is briefly discussed here.

Practicalities of making the payment

11.5 Some respondents pointed out that many care leavers do not have bank accounts, and some may struggle to open an account if they do not have access to the necessary proof or address and identification required by financial institutions. These respondents thought young people may need help in setting up a bank account.

11.6 There were also suggestions that different modes of payment should be offered, including a cash payment, and that consideration should be given as to how the payment would be administered for a young person who had become homeless.

Support for the administration of the payment

11.7 Some respondents – mainly public sector organisations – highlighted the importance of ensuring that there was adequate support and funding in place for the organisation (or organisations) responsible for administering the payment. Some respondents wanted clarification about the source of funding for the payment and its administration, and whether local authorities or some other organisation(s) would be responsible for the administration.

11.8 There were arguments for and against local authority administration. Some noted that local authorities were well placed to take on this role because they already have contacts with looked after children and care leavers. However, it was suggested that dedicated funding should be provided to local authorities for this purpose. Others suggested that local authorities do not have the capacity to take on this additional work, and that, in any case, it would be less stigmatising if the payment were administered by an organisation independent of local authorities.

11.9 A separate, but related point was that, regardless of which organisation(s) had responsibility for administration of the payment, the timescales for its introduction should be carefully considered to align with other relevant policies and legislation, including those related to The Promise Bill.

Monitoring and evaluation

11.10 A recurring theme – for organisations in particular – was about the need for formal monitoring and evaluation of the impact of the payment on care leavers. Respondents thought it was important for the Scottish Government to assess whether the payment is fulfilling its intended purpose and to make any necessary improvements. There were suggestions that any evaluations should examine:

• How easy the payment is for care leavers to access
• Any gap between the (i) the annual number of young people leaving care and (ii) the number (applying for and) receiving a payment
• Reasons that young people may not be receiving, or taking up, the payment
• How young people are choosing to use the payment – and whether any adjustments need to be made in other support available to care leavers as a result
• Any unintended consequences of the payment.

11.11 There was a suggestion that any evaluation should be co-designed with young people with care experience.

Possible other financial assistance for care experienced people (Q22)

11.12 Question 22 asked respondents for their views on other types of financial assistance young people with care experience might benefit from in the future. (Note that in contrast to the rest of the consultation questionnaire, this final question focused on all those with care experience – not only care leavers.) This was an open question and, altogether, 51 respondents – 28 organisations and 23 individuals – provided comments.

11.13 It should be noted that comments from respondents often suggested that the range of financial assistance currently available to care leavers was complicated, confusing and varied from one local authority to another.

11.14 In terms of specific suggestions for financial assistance for young people with care experience, responses to this question clustered around several topics. Respondents thought that people with care experience would benefit from access to financial assistance in relation to:

• Day-to-day living costs: e.g. energy costs, energy-efficient appliances, access to leisure facilities across Scotland, costs of dental care, etc.
• Employment-related costs: e.g. for tools, uniforms, transport, training schemes, and for driving lessons and purchase of a car – there was also a suggestion that the Young Persons’ (under 22s) Free Bus Travel Scheme should be extended to age 26 for young people with care experience
• Technology-related costs: e.g. provision of laptops, phones, tablets and free access to wifi up until age 21 or 26
• Housing costs: e.g. guaranteed access to safe and secure accommodation, a first house deposit scheme
• Childcare costs and other parental responsibilities: it was noted that young people with care experience are less able to rely on support from family networks when they start their own families.

11.15 Reference was made to the Care Leavers Covenant, which emphasises the need for corporate parents to assume that all care leavers are entitled to services, support, and opportunities up their 26th birthday – including access to bursaries and grants; access to employment or training support and provisions; housing and accommodation options; health services; leisure, cultural and recreational opportunities; and access to ‘second chance’ opportunities.

11.16 There were also suggestions that:

• Financial support should be provided to care leavers beyond the age of 26
• The Care Leaver Payment should be made available retrospectively to all those who have left care since 2020 – when the initial commitment was made.

11.17 It was also suggested that there was a need for reform of the social security system in terms of the way in which it interacts with care leavers. One organisation commented that care leavers are often unaware of their rights and entitlements to social security benefits. This organisation also noted that, compared to other users of the social security system, they are also more likely to be sanctioned.

11.18 More generally, respondents thought young people with care experience should be able to have access – in an ongoing way, and through different routes – to practical, emotional and financial support to help them grow and develop their skills in managing their lives and their finances. Some suggested this support would be particularly important at major transitions, such as marriage or starting a family, buying a house, changing jobs, etc.

11.19 Some third sector organisations and organisations in the ‘other organisation type’ category also called for the Scottish Government to consider a ‘more ambitious package of financial support’ for young people with care experience. Specific suggestions included (i) a Basic Income for Care Leavers Scheme – similar to that being piloted in Wales, (ii) further work on a Minimum Income Guarantee, and (iii) a ringfenced welfare fund. These types of scheme, it was argued, would guarantee the financial security that care experienced young people need, and help to create stability and certainty in their lives.

11.20 Finally, it was suggested that the Scottish Government should develop guidance for professionals, young people and families to (i) raise awareness of all entitlements for young people with care experience, and (ii) ensure they are implemented, accessed and received as intended. This was seen to be vital, given the evidence (based on administrative data) that only around half of young people eligible for Aftercare support in Scotland in 2021 received it.