Under the current arrangement a care leaver could be forced to move from their stable home to shared accommodation at the age of 22 following a cut to their housing support.
However, Rishi Sunak said care leavers would be included in an extension of the exemption from the shared accommodation rate (SAR) for Universal Credit and housing benefit claimants.
The move also includes rough sleepers aged 16 to 24 and victims of domestic abuse and human trafficking.
Mark Russell, chief executive at The Children’s Society, said: “We are delighted to see the long overdue extension of higher rates of housing benefit to care leavers until the age of 25, giving them stability in their accommodation beyond their 22nd birthday.
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