Ministers warn against benefit cuts for care leavers

The government has failed to confirm whether they plan to axe Universal Credit for care leavers in England, despite MPs advising against the idea. 

In its response to a recent Education Committee report on the state of children’s social care, the Department for Education (DfE) said that ‘no decisions have been made yet’ on proposals to reduce benefits for under-22s.

However, the government have confirmed they will consider consultation feedback before making changes. 

The Committee urged ministers to exempt care leavers from any reduction in support. Chair Helen Hayes MP said it would be ‘unthinkable’ to cut support for young people already at a disadvantage. ‘Ministers should offer a cast iron guarantee that it will not cut Universal Credit to under-22s who have been in care,’ she said.

According to the Department for Education, any savings from the Universal Credit changes will be redirected into the new Youth Guarantee scheme – an initiative that was announced last month to try and encourage young people, aged between 18 and 21, to get into work or education. 

Meanwhile, the government have agreed that mental health support for children in care could be improved through co-located services with NHS mental health teams – another vital subject that was outlined in the Department’s report. The government said pilot schemes can begin after the South East Regional Care Co-operative model has been reviewed. 

Another aspect of the report that was welcomed by ministers, was the idea to introduce a profit cap for private care providers. The government said they will consult the Committee if the policy was developed, although they warned that they need access to more data before any concrete plans can be made. 

Despite the positive tone, several recommendations were rejected outright. This includes calls for a national care workforce strategy, a sufficiency strategy to ensure adequate care placements, and improved provision for disabled children. 

The government also didn’t directly accept the idea of implementing a national fostering strategy, but the DfE pledged £15m in additional funding for foster carers and said it may consider a national register. In similar vein, a new Kinship Allowance is set to be piloted in 2025, but kinship carers will not receive the same financial support as foster carers.

Hayes welcomed some commitments but warned: ‘We will keep pushing the government for bigger ideas that will help revive the children’s social care sector after its long struggle with stagnant funding and rising levels of need.’

Photo via Openverse

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