For care leavers, the challenges of starting an independent life can be even greater than for their non-care experienced peers.

The official definition of a care leaver is someone aged between 16 and 25 who spent at least 13 weeks in care, some of which after they turned 16. When a child enters the care system, their local authority becomes their ‘corporate parent’, and must continue to provide support until they reach the age of 25. However, care leavers receive a lower standard rate of Universal Credit (UC) compared to those 25 and over — just like all other under 25 year olds — adding another challenge at a crucial time in their lives.

“[Care leavers’] costs are the same as everyone else’s. Electricity, food and travel are not cheaper because they are under 25. They need extra support to establish themselves in the adult world.”

— Local Citizens Advice adviser, surveyed August 2024

Why a lower rate?

The lower rate of UC for under 25s is based on the assumption that this group can draw on family networks for support, but this is clearly less likely to apply to care leavers. Given the state’s responsibilities towards care leavers, and the unique pressures this group faces, it’s concerning that care leavers get the lower rate of UC. Parental support often continues long past 18 and the benefits system must match this reality for the young care leavers it supports.

The standard allowance of UC is £311.68 per month for under 25s and £393.45 per month for those 25 and over. Over the course of a year, a care experienced 24 year old will be £981.21 worse off than a 25 year old — equivalent to almost a whole month’s rent in the average 1 bedroom property.

When we surveyed Citizens Advice advisers in August 2024, they told us that the care leavers they support can struggle to afford essentials and maintain support networks and can see their mental health negatively impacted as a result of the lower rate of UC.

“Having automatic entitlement to the standard allowance for UC [at the 25+ rate] — would make a huge difference in reducing deficit budgets experienced by care leavers that we support.”

— Local Citizens Advice adviser, surveyed August 2024

The reality is care leavers are financially independent from 18, often responsible for managing the costs of running a household. Meanwhile, young people more generally are staying at their family home for longer. The government should recognise this disparity. The way UC rates are applied doesn’t match the reality faced by many care leavers.

Claire* is a care leaver who began living independently soon after leaving the care system. She first came to Citizens Advice for help with food and fuel costs. One month, she called the free Citizens Advice Adviceline because she had run out of phone credit, had only 9p left until her next UC payment in 2 weeks time, and was running low on electricity. Her advisers had to issue Claire food bank and fuel vouchers. Her adviser felt the inadequate under 25 rate of UC was adding to the challenges Claire was facing navigating life outside the care system.

UC is out of step with other policy thinking

Care leavers face many intersecting challenges, and because they are less likely to have family support networks, the first years of living independently can be tough. For example, in 2023, 41% of care leavers aged between 19 and 21 were not in education, employment or training (NEET) compared to 12% of those aged 18–24 in the general population. In England, the number of care leavers aged 18–20 facing homelessness had increased by 33% between 2018/19 and 2022/23.

Housing insecurity is a real problem for care leavers, and something they are likely to have experienced throughout their childhood and adolescence — 1 in 10 children experienced high instability, defined as 3 or more care placements in a year. The government should look to provide care leavers with security, ensuring adequate support for them to navigate renting with more ease. As the Local Government Association (LGA) argues, making sure that suitable housing options are available will ‘smooth the transition’ of care leavers starting independent life and lower the chances of them becoming homeless.

Some welfare policies recognise the particular needs of care leavers. Care leavers receive the higher 1-bedroom rate of Local Housing allowance, while most other under 25 year olds receive the Shared Accommodation Rate (SAR). They may also be exempt from council tax in some local authorities. The lower rate of UC is out of step with these aspects of the welfare system, which recognise the importance of providing additional support to care leavers. The inadequate under 25 rate of UC has real consequences for this group, who are facing unique challenges at a critical stage in their lives.

Future reforms must prioritise independence and opportunity for care leavers

“More income means more choices — employment, education, training — more self confidence and a better opportunity to improve their quality of life”

— Local Citizens Advice adviser, surveyed August 2024

The new government committed in its manifesto to reviewing UC. This would be an opportunity to reevaluate the under 25 UC rate for care leavers.

The House of Lords recently debated whether to increase the rate of UC for care leavers to the over 25 rate, and the Lord Bishop of Manchester has introduced a Private Members Bill to the Lords on the same topic, due to be read on 10 September. There is then a chance that this topic will reach the Commons for debate. This is a welcome development and the issue should continue to form part of a wider reckoning of our welfare system.

Strong state support is vital for this group of people, helping them overcome unique challenges and transition to independence. Exempting care leavers from the lower standard allowance rate of Universal Credit would help them to live secure and fulfilled lives.

* All names have been changed.