Children and Social Work Bill [HL] — House of Lords, 2016-10-18
Topic: Social Welfare
Catherine Bakewell (Liberal Democrats, Centre to centre-left): My Lords, I support the amendment, to which I have added my name, and am grateful to the noble Earl, Lord Listowel, for moving it. It covers a great deal of important ground. As I said earlier, I attended the briefing by the Children’s Society last week, where some of the statistics provided were compelling. I agree with much of what has already been said and will have to amend my speech as I go along Often, care leavers moving into independent accommodation are managing their money for the first time. They find this very challenging due to the lack of financial education prior to reaching the age of 18. They have very low levels of income and often fall into debt As we have heard, working tax credits are not available to care leavers at a time when they have full responsibility for running a household for the first time. Some will have apprenticeships, but the apprenticeship rate is £3.40 an hour—no doubt based on the assumption that young people in apprenticeships live with their parents. This is hardly likely to keep care leavers out of debt A study undertaken by the Joseph Rowntree Foundation shows that, as the noble Lord, Lord Watson, said, 57% of care leavers have difficulty managing their money, and almost half of local authorities in England fail to offer adequate financial education for care leavers. We have already heard about the exceptionally high number of care leavers being sanctioned under universal credit The amendment proposes a national offer of a range of support for care leavers to help them towards the age of 25. Some will not necessarily need that support for that long, but others will take time to get to grips with their responsibilities and budgetary control of limited resources. Council tax exemption until age 25 appears an easy way to assist. As we have heard, very few local authorities exempt care leavers from council tax. However, 1,800 young people are currently exempt from council tax where local authorities have recognised that additional help is needed for this vulnerable section of our community. The costs are not great to individual authorities. Cheshire East Council estimates that it costs it £17,000 per annum in total—a small cost compared to the relief it brings to young people struggling to get to grips with living independently The noble Earl, Lord Listowel, said that he had heard from Jack, and so did I. Jack is now a care leaver in his early 20s who was in care from four to 18. Jack felt that lots of money was thrown at looked-after children on activities—in his case, frequent trips to Alton Towers, clothing allowance and pocket money. He felt that that was far more money than a normal family could afford for their children. As a mother, I echo that. I could not afford to take my children on frequent trips to Alton Towers, although they would very much have liked that. He said that it cost more to keep him in care than to send him to Eton. When he left care, however, he did not even have enough money for the bus or heating. Jack’s view, which I thought was very practical, was that his activity money would have been better used after he was 17 to fund driving lessons I share Jack’s view that some of the money currently spent on looked-after children could be used to much better effect. I am conscious that we in this House may not impose additional financial burdens on the Government, but the Bill is starting here. We must find ways to support these young people who, as care leavers, are disproportionately represented in our prison and probation services. Reprofiling the money currently spent might be one way to achieve the aims of the amendment I support the noble Earl, Lord Listowel, in his amendment, and we on this side of the House are prepared to support him in a Division on this critical issue if necessary.