Universal Credit (Standard Allowance Entitlement of Care Leavers) Bill [HL]

Baroness Benjamin Excerpts

2nd reading
Friday 17th January 2025 Lords Chamber

[Baroness Benjamin (LD)]

My Lords, I support this important Bill and commend the right reverend Prelate for bringing forward this measure with such clarity and compassion.

As a society, we have a duty to ensure that young care leavers are given every opportunity to thrive, reach their full potential and contribute to their communities. Yet despite some positive steps in recent years, we know that care-experienced young people continue to face significant barriers. Many of these barriers are financial, and they are amplified by the unique circumstances of their lives.

Young people leaving care often find themselves living independently, without the safety net of family support that so many others rely on well into their 20s. The struggles they face are basic needs: paying for food, utilities and other essentials, while trying to take their first steps into adulthood. These challenges are compounded by the rising cost of living today. The Bill offers a simple but effective remedy. By equalising the standard allowance of universal credit, we can help ensure that care leavers aged 18 to 25 have access to the financial resources they need to build stable and independent lives. For a young person, that extra £81.77 per month can make the difference between surviving and thriving.

I have seen the transformative impact that support and guidance can have on the lives of care-experienced young people. Organisations such as First Star Scholars UK—I declare an interest as patron—are leading the way in this regard. First Star’s four-year programme for young people in care has achieved remarkable results, with its scholars now reaching national averages of GCSE attainment and university placements. Through life-skills programmes such as those offered by First Star Scholars, care-experienced young people are not only gaining qualifications but learning essential tools for independence, such as financial literacy.

These skills are vital in enabling care leavers to navigate adulthood with confidence, ambition and resilience, with a strong foundation to succeed, but financial stability is critical to that success. Without adequate support, care leavers face significantly poorer outcomes, including homelessness, unemployment and imprisonment. It is estimated that failing to invest in care leavers costs the taxpayer an additional £1 million per individual over their lifetime. Surely providing the financial support and programmes they need to thrive is both a moral and economic necessity.

The Bill represents a step forward towards fairness, dignity and opportunity for young care leavers. It is not just about financial support; it is about saying to these young people, “You matter. We believe in you, and we are committed to your success”. I urge the Government to support the Bill and ensure that care leavers, who have already faced so many challenges in their young lives, are given the chance to stand on an equal footing with their peers. We have the opportunity to help care-experienced young people realise their full potential and build a future they can be proud of.