Financial education charity MyBnk’s survey of care leavers and care professionals finds that the level of financial education given to young people leaving the care system is “inconsistent” across the UK, with some local authorities providing support that is “clearly stated and well delivered”, whereas in other areas it is “limited in coverage and quality”.
Despite “widespread willingness” from local authorities to help care leavers to manage their personal finances and transition into independent living, the report authors state that young care leavers have reached a “critical point” where receiving inadequate financial education only “worsens their situation”.
With 67 per cent of care leavers surveyed admitting to “feeling anxious” about money, and 80 per cent revealing that they want more help managing their finances, MyBnk says that a postcode lottery of support “is not good enough”.
The report, which also looks at data from 145 local authorities following a Freedom of Information request, finds that 89 per cent of care leavers have encountered challenges when trying to access financial education support, with only 33 per cent receiving support “when they needed it”.
Although more than nine out of 10 authorities surveyed offer some form of money management support to their care leavers, 87 per cent said that attendance is not mandatory.
Four out of five councils offer discretionary funding to care leavers, with 73 per cent supporting the move into independent living. However, support is “not universal”, the report states, with 98 per cent of authorities providing council tax support but just half offering a full exemption for all 16- to 24-year-olds.
MyBnk has made recommendations to improve life chances for care leavers including clearer guidance from the Department for Education on financial education provision. The charity is also urging local authorities to collect information about care leavers’ evictions, to help prevent “serious financial distress”, such as homelessness.
Commenting on the research, funded by the Berkeley Foundation and Trust for London, and launched on Care Day 2023 (17 February), Guy Rigden, chief executive of MyBnk, said: “We’ve frequently heard from care leavers that turning 18 can feel scary, abrupt and disruptive – leaving them to deal with the financial burden when they need stability the most. Our report calls for changes in the system to ensure young care leavers have the skills, knowledge and confidence to manage their money and ultimately live happy lives.”
The findings echo recent calls from charity Become to improve support for children leaving care.
