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

Baroness Bennett of Manor Castle Excerpts

2nd reading
Friday 17th January 2025 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I apologise that your Lordships’ House has already heard rather a lot from me today, given that I had the previous Private Member’s Bill, but I wanted to make one particular point here, which is why I put my name down on the list. I thank the right reverend Prelate the Bishop of Manchester for bringing forward this humane, constructive and practical Bill, which I have no doubt at all would end up saving the Government money—not that that should be the main point, but it is worth highlighting. I also thank him for introducing it so clearly.

The chief comparative point I want to make is this. In Wales, a trial of something much more radical and much larger than this proposal is continuing. It is a trial of universal basic income for care leavers that has seen a total of 635 young people receive payments after tax of £1,280 a month for two years. This trial will continue until May 2025, and, unfortunately, anyone leaving care after that point will not be eligible for it. There will then be continuous careful academic study and reports on its impact.

I note that the Minister for Social Justice in Wales has said that there has already been fantastic feedback from participants. I was at a meeting where we heard some direct testimony from some of the care leavers who have benefited from this programme. One story that will stick with me is of a couple of care leavers who chose to leave their minimum wage jobs to take up apprenticeships so that they could establish themselves in their lives, establish a career and get training and education, which the current system did not allow them to do. It was only because they were able to access this trial that they could do that. While the proposal before us would not necessarily entirely achieve that aim, it kind of demonstrates the ways in which it could open up people’s horizons and possibilities.

It is also worth pointing out some recent global research, which shows how universal basic income can substantially improve the mental health of young people generally—but, obviously, of care leavers in particular. Potentially, that would mean enormous savings in costs for the NHS.

I will briefly raise a couple of other points. I note a study from Become, the national charity for children in care and young care leavers, which found that more than 9% of care leavers aged 18 to 25 were statutorily assessed as being homeless or facing homelessness in the past year. That is 10 times the rate of non-care-experienced children, and that is a huge failure. You emerge from the experiences of care and then they find yourself statutorily homeless—what a difficult position that is. Again, the right reverend Prelate’s Bill would not solve all of that, but it would be a step towards it.

There is one other point on which the Minister may wish to write. I note that Coram Voice, after a freedom of information request to 153 local authorities in England, found that care leavers were receiving vastly different levels of support. There is supposed to be a setting up home allowance of £3,000, but some councils are paying only £1,500. Can the Minister tell me what is happening to make sure that all care leavers are at least getting the setting up allowance that they obviously greatly need?

Finally, with reference to my position as a vice-president of the Local Government Association, I note a call from the LGA last year suggesting that care leavers should be exempt from council tax and prescription charges, as well as NHS dental charges and optician costs, to help them further, as the right reverend Prelate’s Bill does. Could the Minister respond to any of that?