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

Lord Davies of Brixton Excerpts

2nd reading
Friday 17th January 2025 Lords Chamber

[Lord Davies of Brixton (Lab)]

My Lords, we owe a debt to the right reverend Prelate the Bishop of Manchester for introducing this Bill and highlighting a significant problem.

It has been said today that many people come through the care system and move on to a full, successful life, but—and it is a big but—it is tougher for people who come out of the care system, and they deserve the support which is suggested by this Bill. I thank the charitable organisations for the briefings they have provided, which highlight the financial challenges faced by care leavers and certainly their entitlement to this additional support.

As the right reverend Prelate said, each year, 13,000 young people leave care in the UK, transitioning to independence far earlier than young people more generally, most of whom continue to receive some sort of support from their parents. Typically, and now increasingly, young people are living with their parents and retaining that support, unlike people from care backgrounds. Of course, the picture is mixed. Many foster parents keep supporting children even after the age of 18, but it is still more difficult for care leavers, and the system should recognise this.

As the right reverend Prelate mentioned, the Joseph Rowntree Foundation has highlighted that the current rate of universal credit provides only about half of the level of what is required for food, shelter and clothing; the justification for paying them a lower rate of universal credit just is not there. The financial penalty disproportionately impacts care leavers, many of whom, because of the greater struggles they face, depend entirely on universal credit due to the problems they have had with education and employment opportunities. As has been mentioned, the statistics from 2024 show that around two-fifths of care leavers aged 19 to 21 are not in education, employment or training, compared with 13% of children more generally. Care leavers themselves have made clear how they struggle and what a significant difference this measure would make.

I argue that although we have a strong case in terms of costs and savings, I see this as a moral issue. We owe these young people the best possible start in life. They are entrusted to our care, and this Bill would give them the resources they need to meet our obligation towards them.