Children and Social Work Bill [HL] — House of Lords, 2016-10-18
Topic: Social Welfare
Francis Hare (Crossbench, Unknown): My Lords, Amendment 13 relates to the national offer for care leavers. I am grateful for the support of the Labour and Liberal Democrat Front Benches for this amendment. Recently I heard from Ashley, an 18 year-old in a Staying Put placement who has experienced at least six different foster placements during her time in care As I speak, I am thinking about a colleague from a charity board who recently described to me her early experience. Her mother was a crack addict who told her children both that she valued drugs more than them and that if they did not visit her regularly, she would take her own life. My colleague is extremely bright and hard-working and made it to university—one of the 6% of care leavers who do so. There, she had many black days, but she was supported by her flatmates, she completed her degree and, in August of this year, was married to a kind man—an accountant. So many care leavers do not experience that success. Without a family to call on, they might quickly find themselves alone and in debt, perhaps destitute. Our ambition must be to furnish care leavers with the necessary skills and training to allow them to excel and achieve their full potential, as we would wish for our own children However, financial security—the bedrock of being able to do these things—is so often difficult for them. Jack, a care leaver who attended a meeting organised by the Children’s Society last week, subsequently told me that, "The national offer would provide stability to care leavers, with protection from the darker side of financial troubles. It means we could focus on our education, employment or training and not on the stress of how we are going to pay for this or that, or whether to buy a bus pass or food shopping that week" I welcome the steps that the Government have taken to better support care leavers: allowing them to stay put with their foster carers until the age of 21; the Ofsted inspection of care leavers services; the Government’s care leavers strategy; and the new rights under the Bill. However, we all know that we need to do more. The Bill makes a local offer, which is very welcome, but in their role as corporate parent, the national Government need also to provide a robust offer for care leavers, with a particular focus on financial support. If the Government are serious about building a country that works for all and improves the lives of those who are just managing to keep their heads above water, they must ensure that a package of improved support for care leavers is central to that commitment. It is certainly not for this House to decide on financial matters. However, as this Bill begins with your Lordships, we can give the other place an opportunity to discuss matters that are vital to the welfare of care leavers This amendment has four parts. The first provides for a reduction in the penalties attached to sanctions targeted at care leavers under the age of 25. The second would provide working tax credit for care leavers under 25, and the third would extend the current exemption from the shared accommodation rate for housing benefit for care leavers from 22 to 24. Finally, the amendment would provide an exemption from council tax for care leavers under 25 Research from the Children’s Society shows that currently, care leavers are three times more likely to receive a sanction than other young claimants, yet are much less likely to challenge these sanctions, perhaps due to the lack of a pushy parent. When they do appeal, however, two-thirds of these sanctions are overturned. This amendment would soften the sanctions on care leavers under the new universal credit system, in recognition of the additional complexities in their lives—meaning that the maximum sanction would apply for four weeks, as opposed to the existing four to 13 weeks for a first-time infraction. The cost of this measure is effectively nil, as sanctioning is a form of punishment, not a revenue generator for the Treasury The noble Lord, Lord Freud, has made an eloquent case for the mental health benefits of employment—but, to be a viable option for care leavers, work must pay. For this reason, our amendment would allow for care leavers under the age of 25 to claim working tax credit—a crucial form of support already paid to those over the age of 25 and to those under that age if they have children or disability. I recognise that working tax credit is soon to be phased out, but, under the new universal credit arrangements, under-25s will still be penalised, so it would be a very important flag to ensure that universal credit will also recognise the needs of this particular group For care leavers, a job can mean the end of isolation, as well as the beginning of independence; yet care leavers are heavily overrepresented among young people who are not in employment, education or training. Perhaps the existing assumption behind the working tax credit age limit is that low-income young people will be living at home with their family. This assumption clearly does not apply to care leavers, and they should therefore be able to benefit from this extra help if on a low income Thirdly, our amendment would ensure that no care leaver would pay council tax up to the age of 25. Already, six local authorities have suspended this charge for care leavers. Where they are liable for council tax, most care leavers already receive heavy discounts—but still, many struggle to cover this. Despite these changes, we still have the nonsense of corporate parents sending around the bailiffs or taking their own children—or children for whom they have a corporate responsibility—to court to pursue small amounts of money, which might cost more than the money recovered. I am encouraged that, in their latest strategy, the Government have asked local authorities to consider a council tax exemption for care leavers. However, I am sure that noble Lords would agree that the sensible thing to do is to mandate that all local authorities do this, as they do already for those in higher education Finally, our amendment would disapply the shared accommodation rate for care leavers until the age of 25. Currently, when a care leaver turns 22, if they are living in privately rented accommodation, their housing benefit is often reduced to that sufficient to rent for a room in shared accommodation, rather than a self-contained property. For many care leavers, their first home might be the first stable home they have ever had. Faced with reduced housing benefit, they might experience dislocation and, possibly, homelessness. We know that approximately 25% of the homeless population have been in the care of a local authority and are therefore care leavers. It cannot be right that, when almost half of all 20 to 24 year-olds still live at home with their parents, we put care leavers in a position where they could see a typical £31 a week cut to their housing benefit at the age of 22 The cost of our amendment is estimated at around £50 million a year. The aim of the Bill is to extend provision of some key forms of support for care leavers until the age of 25. The logic behind the national offer is to extend the financial support that a care leaver can expect to receive up to that age. The cost of not introducing this amendment is far higher than the cost of its introduction. I beg your Lordships to allow the other place the opportunity to consider this national offer for care leavers. I beg to move.