Care Leaver Payment: consultation analysis

5 Payment amount and processes (Q3 to Q6)

5.1 This chapter discusses respondents’ views on certain aspects of the implementation of the proposed Care Leaver Payment.

5.2 The consultation paper explained that the Scottish Government had previously proposed a Care Experience Grant involving an annual payment of £200 for 10 years. However, following consultation with stakeholders, the name of the grant was changed to Care Leaver Payment, and payment was now conceived of as a single lump sum of £2,000. This change takes account of the current cost of living, the likely limited impact of annual payments of £200, and the potential administrative challenges of delivering payments over a period of 10 years without a re-application process.

5.3 Four questions asked respondents for their views on the revised approach and aspects of its implementation, including how the payment is made, at what point the payment should be made, and whether care leavers would benefit from a choice in relation to the payment arrangements.

Question 3: What are your views on the revised approach proposed by the Scottish Government? Please share your views.

Question 4: How helpful would a payment of £2,000 be at the point of moving on from care? [Not at all helpful / Somewhat helpful / Helpful / Very helpful]

Please explain your answer.

Question 5: Would it be beneficial for applicants to have a choice in how their payment is made? For example, having the payment made in instalments of smaller amounts over a period of time rather than as a lump sum. [Yes / No / Unsure]

Please explain your answer and provide any suggestions you have.

Question 6: At what point would it be most helpful for care leavers to receive the payment? [In preparation of moving on from care / At the point of moving on from care / Within one year of moving on from care / Within 18 months of moving on from care / Other]

Please explain your answer and provide any other suggestions you have.

Proposed approach (Q3)

5.4 Question 3 asked respondents for their views on the revised approach proposed by the Scottish Government (i.e. a single lump sum payment of £2,000, rather than instalments of £200 over 10 years). This was an open question and, altogether, 67 respondents – 35 organisations and 32 individuals – made comments. The discussion below focuses on: (i) views on the revised approach and (ii) concerns about potential unintended consequences and how these may be addressed.

Views on the revised approach

5.5 In general, respondents thought the revised proposal of a single lump sum payment of £2,000 was better than the initial proposal of £200 annual payments over a period of 10 years. Respondents described the change as ‘sensible’, ‘practical’ ‘more inclusive’, ‘more beneficial to young people’, helping to promote ‘dignity, fairness and respect’, and offering ‘better value for money’. They thought the original proposal of instalments over a 10-year period would have had limited impact and was unlikely to achieve the intended purpose of the payment (i.e. to reduce the financial barriers for young people leaving care). Some respondents said the revised approach demonstrated a high level of trust in young people – which was seen to be positive.

5.6 Some respondents also said the revised proposal of a one-off lump sum payment would be easier to administer, whereas the original proposal of payments in instalments over 10 years was described as ‘impractical’ with a heavy administrative burden.

5.7 Less often, respondents expressed reservations about the revised approach, saying that a £2,000 lump sum may not be spent appropriately by some young people and / or would put them at risk of financial exploitation. These respondents generally favoured the original proposal of annual payments of £200 over 10 years.

5.8 There was also a suggestion that the Scottish Government should publish any analysis or research on how the proposed level of payment (£2,000) had been arrived at. A question was also raised about whether any projections had been made for inflation-based increases to the payment over time.

Potential unintended consequences and how these can be addressed

5.9 While most respondents supported the revised approach, they also repeatedly expressed concerns – raising similar points to those who had reservations. In particular, they suggested that:

• Some young people will find it difficult to manage such a large sum of money.
• Some young people might be put at risk by a large one-off payment.
• The payment could have a negative effect on access to other financial support.

5.10 All of these issues are covered in detail in Chapter 8 where respondents’ views on the potential negative impacts of the Care Leaver Payment are discussed.

Helpfulness of the payment (Q4)

5.11 Question 4 asked respondents for their views about how helpful a payment of £2,000 would be to a young person at the point of moving on from care. Table 5.1 shows that, overall, 37% of respondents thought such a payment would be ‘very helpful’, 25% thought it would be ‘helpful’, 30% thought it would be ‘somewhat helpful’, and 8% thought it would be ‘not at all helpful’.

5.12 Individuals were more likely than organisations to think the payment would be ‘very helpful’ (52% of individuals, compared with 20% of organisations). Individuals were also more likely than organisations to think it would be ‘not at all helpful’ (15% of individuals, compared with 0% of organisations). By contrast, organisations were much more likely than individuals to choose the intermediate options (‘helpful’ or ‘somewhat helpful’) – 4 out of 5 organisations (80%) chose one of these options compared to a third (33%) of individuals.

Percentages may not total 100% due to rounding.

5.13 Respondents were asked to explain their answers and, altogether, 61 respondents –32 organisations and 29 individuals – provided comments.

5.14 Very similar comments were made by those who answered ‘very helpful’, ‘helpful’ and ‘somewhat helpful’. Thus, the views of these three groups are discussed together below, followed by a brief summary of the points made by those (5) individuals who thought the payment would be ‘not at all helpful’.

A payment of £2,000 would be very helpful, helpful or somewhat helpful

5.15 As mentioned above, similar views were expressed among respondents who thought a £2,000 payment would be very helpful, helpful or somewhat helpful. This group thought the payment had the potential to be helpful, but the extent to which it is helpful, in reality, would depend on a number of factors.

5.16 Some thought a payment at this level would help mitigate financial pressures for care leavers and give them a degree of security that they would not otherwise have. Others noted that local authorities already give young care leavers a grant to pay for basic essentials in furnishing a flat but said that the proposed Care Leaver Payment would give young people greater choice, allow them to buy better quality items, and give them the means to personalise their homes.

5.17 Respondents who thought a £2,000 payment would be helpful also frequently expressed caveats, saying that, to a large extent, the impact of the payment would depend on each individual’s circumstances and their willingness (if needed) to accept advice and support. Some respondents, who thought the payment would be ‘somewhat helpful’, pointed out that, in the current economic climate, £2,000 would not go very far in covering the costs of rent, food and energy. These respondents repeatedly said that the extent to which the Care Leaver Payment is helpful would depend on:

• Clearly defined parameters for its use
• Support being provided to help young people budget and manage the money
• The relationship between this payment and other financial support given to care leavers
• Other existing financial entitlements not being reduced or withdrawn
• The young person’s circumstances at the point of moving on from care.

5.18 Respondents thought that, to be most helpful, the Care Leaver Payment must be one part of a package of holistic support for young care leavers that includes ongoing relationship-based advice and guidance, sufficient social security benefits, supported employment opportunities and access to good accommodation.

A payment of £2,000 would NOT be helpful

5.19 Respondents (five individuals) who thought a payment of £2,000 would not be helpful largely echoed the caveats noted above in explaining their reservations and concerns. This group argued that young people leaving care would not be able to manage such a large sum of money appropriately, and that these young people needed more than ‘a cheque and a pat on the head’. These respondents were concerned that young care leavers would spend the money and be left with ‘nothing to show for it’.

Applicant choice in how the payment is made (Q5)

5.20 Question 5 asked respondents if they thought it would be beneficial for applicants to have a choice in how their payment is made. The example was given of having the payment made in instalments over a period of time, rather than as a lump sum payment, as currently proposed by the Scottish Government.

5.21 Table 5.2 shows that, overall, 85% of respondents thought it would be beneficial for applicants to have a choice in how their payment is made, and 6% thought it would not. The remaining 9% of respondents were unsure.

5.22 Although large majorities of both organisations (91%) and individuals (79%) thought it would be beneficial for applicants to have a choice in how their payments were made, individuals (12%) were more likely than organisations (0%) to say it would not be beneficial.

Percentages may not total 100% due to rounding.

5.23 Respondents were invited to explain their answers and to provide any suggestions that they had and, altogether, 60 respondents – 32 organisations and 28 individuals – offered comments. The discussion here focuses first on the views of those who thought it would be beneficial for applicants to have a choice in how their payments were made. The views of those who said it would not be beneficial and the views of those who were not sure are presented afterwards. This is then followed by specific suggestions respondents made about how to deliver the payment in a way that would maximise the benefit for young care leavers.

Choice in how their payment is made will be beneficial

5.24 Many of the respondents who answered ‘yes’ at Question 5 did not explain their views in any detail. Instead, they simply reiterated that those who are the intended recipients of the payment should have a choice, and payments should be made in a way that suits the young person’s circumstances and needs.

5.25 However, some referred to Article 12 of the United Nations Convention on the Rights of the Child (UNCRC), saying that children have the right to express their views freely in all matters affecting them and that these views should be given due weight in decision-making. In addition, some respondents noted that giving young people a choice would align with the values and principles of Getting It Right for Every Child (GIRFEC). In addition, they pointed out that a core principle of The Promise is that children and young people are listened to and involved meaningfully and appropriately in decision-making about their care. Respondents saw this type of choice as a way of empowering young people and allowing them to take appropriate risks on their journey to independence.

5.26 A range of other points were also made by respondents who answered ‘yes’ at Question 5, including that:

• Some young people may be overwhelmed by such a large lump sum and prefer to receive smaller amounts spread out over a period of time.
• The needs and circumstances of young people are different; this should be reflected in the way the payment is made.
• Giving young people a choice about how and when the payment is made would enable conversations with staff about how the payment will be used, thus encouraging greater financial responsibility.
• Having the option to pay in instalments would help reduce the risks of exploitation associated with receiving a large lump sum payment.

5.27 There was also a view that, given the relatively low numbers of young people leaving care each year, it ought to be possible to have bespoke arrangements for each individual.

Choice in how the payment is made will not (or may not necessarily) be beneficial

5.28 Among respondents who answered ‘no’ or ‘unsure’ at Question 5, the main theme in the comments was that it would potentially be too complicated administratively to give young people a choice in how their payment is made. It was suggested that it could be challenging for local authorities to provide this level of flexibility. One third sector organisation thought it would ‘probably be impossible within current capacity’. The point was made that managing instalments would be complex and could be further complicated by the nature of the relationship between the individual and the local authority (which might also change over time).

5.29 Separately, it was also suggested that young people were unlikely to choose to have the payment made in instalments. Most young people, it was suggested, would prefer to have a lump sum payment.

Suggestions regarding how the payment is made

5.30 Respondents made a variety of suggestions for how flexibility could be built into the delivery of the payment. It was relatively common for respondents to suggest that young people should apply for the funds for specific purposes (possibly linked to the eight wellbeing indicators^[11]), thus ensuring that they have a plan for the money before receiving it. Other suggestions included:

• Administering the funds using a model similar to that of Self-Directed Support.
• Offering 12 monthly instalments, two annual instalments, or 24 monthly instalments. (There was a view that any timescale longer than 24 months was unlikely to be helpful to care leavers.)
• Giving applicants until the age of 26 to claim up to £2,000, with any remaining balance paid to the young person on their 26^th birthday.

Timing of payment (Q6)

5.31 Question 6 asked respondents about the point it would be most helpful for care leavers to receive the payment. Four options were given: (i) in preparation of moving on from care, (ii) at the point of moving on from care, (iii) within one year of moving on from care, and (iv) within 18 months of moving on from care. Respondents could also tick ‘other’ if they wanted to suggest another point in time. To simplify the presentation of the results, options (iii) and (iv) above – each of which was chosen by a very small number of respondents – have been combined into a single category in Table 5.3.

5.32 Table 5.3 shows that, overall, around a third of respondents (34%) said it would be most helpful for care leavers to receive the payment in preparation of moving on, 11% thought it should be received at the point of moving on, and 10% thought it should be received within 12 to 18 months of moving on. However, the largest proportion of respondents (44%) answered ‘other’ in response to this question.

5.33 There were differences in the way organisations and individuals answered this question: most individuals (75% in total) selected one of the three timing options offered, while most organisations (about two-thirds, 68%) selected ‘other’.

Percentages may not total 100% due to rounding.

5.34 Respondents were asked to explain their answer and provide any other suggestions that they had. Altogether, 61 respondents – 32 organisations and 29 individuals – offered comments. These included several who did not answer the closed question but whose comments largely echoed those who selected ‘other’.

5.35 The sections below provide a summary of these views of those who selected each of the options set out in the consultation question.

The payment should be given in preparation of moving on

5.36 The key point made by respondents who selected this option was that having the payment at this stage would provide an opportunity for, and enable conversations about, financial management with the young person while they are still in care. It would also allow the young person to plan and factor in the payment as they make decisions about future accommodation.

5.37 Some who selected this option said that they thought young people should have the choice of when the payment is received. However, in their view, the point at which it is likely to be most useful to the young person is when they are preparing to move on from care. There was a view among this group that an early payment (i.e. before leaving care) would also reduce the risk of any administrative delays in receiving the payment.

The payment should be given at the point of moving on

5.38 Most respondents who selected this option were individuals; there was just one organisation in this group. These respondents echoed some of the points made above. They noted that young people leaving care have many financial challenges, particularly if they are taking on their own tenancy for the first time. Thus, increased financial support at this point would be of most benefit, enabling young people to create a safe and stable home of their own.

5.39 While this group thought the Care Leaver Payment would be of most benefit to young people at the point of moving on from care, there was also a concern that some young people may decide to move on before they are really ready, knowing that there is a considerable sum of money available to them to do so.

5.40 Like the group discussed above, some respondents also said that they thought young people should be able to choose when to receive the payment. However, they also thought a later payment would be less likely to achieve the policy intention of reducing the financial barriers that young people face when they move on from care, resulting in more young people facing financial hardship for a longer period of time.

The payment should be given within 12 or 18 months of moving on

5.41 Just six individuals selected the option of having the Care Leaver Payment made within 12 or 18 months of moving on from care, and just four of these provided comments to explain their answers. This group made several different points and, in each case, the point was made by one or two people:

• Not all young people will be ‘ready’ to receive a large payment at the point at which they leave care. There was a concern that some would ‘blow’ the money and be left with nothing to show for it.
• Young people will be more mature 18 months after leaving care and will make better financial choices.
• Local authorities already provide financial support to young people at the point at which they move on from care to help them set up their own home. This support should continue to be provided. Any new additional funding will be more useful to young people around a year after leaving care.
• Having access to the payment 12 or 18 months after leaving care provides greater flexibility in spending the money.

Other views about the timing of the payment

5.42 The two main points made by respondents who selected ‘other’ at Question 6 were that (i) the payment should be given to young people at a time of their choosing, and (ii) the Scottish Government should consult young people on this matter.

5.43 As noted previously, some organisational respondents had engaged with young people in care and care leavers to inform their response to the consultation. These respondents reported that there was not a consensus on the preferred timing of the payment among the young people they consulted. Rather, young people suggested that the best time for the payment will be different for different individuals. Therefore, there should be flexibility in the timing of the payment, and a ‘one-size-fits-all’ approach should be avoided.

5.44 Occasionally, respondents who selected ‘other’ made specific suggestions about when the payment should be made available to young care leavers. In most cases, they suggested it should be made anytime up to age 26. However, there was also a view that the payment should be made at age 21, by which time (it was suggested) most young people will have matured and have better decision-making skills. A third view was that it should be given to them in instalments on their birthday over 10 years.

5.45 Two further points were made by this group:

• First, it was also suggested that consideration needs to be given to the timing of the Care Leaver Payment for children and young people who may be in secure care or in prison at the time of leaving care.
• Second, young people should be encouraged to remain in their placements (through Continuing Care arrangements) until the age of 21. Those who opt to do so should be able to claim their Care Leaver Payment after moving on from Continuing Care.