My Lords, I shall speak in particular Amendments 27, 49 and 88. I spoke at Second Reading about these issues and referred to the Children’s Society report, The Cost of Being Care Free. As we have heard today, young people in the care system suffer inadequate preparation for the financial implications of independent living. Care leavers are already vulnerable and deserve proper support to prevent them falling into poverty. Rent, council tax, electricity, gas, food and general household bills are all a black art and a mystery to them.
The key findings in The Cost of Being Care Free included that young people leaving care alone and with no family to support them are falling into debt and financial difficulty, due to insufficient financial education from local authorities. Almost half of local authorities in England failed to offer care leavers financial education, support and debt advice, leaving vulnerable young people unprepared for the realities of adult life and at risk of falling into dangerous financial situations. Many care leavers receive financial advice only once the situation has reached crisis point. Such dangerous financial situations could be prevented through financial education and advice, so it is important that we should do everything we can to make sure that this happens.
Young care leavers who have spoken to the Children’s Society stress that they would have welcomed more financial education and support prior to leaving care. They said that due to insufficient preparation on the part of the local authority, they had to figure out what bills needed to be paid and what their responsibilities were when they turned 18. Many young care leavers become destitute and homeless, as we have already heard.
On access to the benefits system, out of 4,390 decisions taken by jobcentres to apply for sanctions on care leavers, only 16% challenged them and 62% of those challenges were overturned, which means that 3,960 sanctions were applied to care leavers, meaning that there was one sanction for every 13 care leavers. It is simply unacceptable that care leavers should be sanctioned in this way.
I turn now to Amendment 88. I should say that I have tabled it on behalf of the Joseph Rowntree Foundation, which is extremely concerned about the life chances of young people leaving care—in fact, it is more about the lack of life chances. All the information and advice that could be made available to care leavers should be made available, and I fully support these amendments.
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