Care leavers call for more support in managing finances
Amber Middleton
Monday, October 24, 2022
The majority of young people leaving care in the UK want more help managing their finances, according to a new survey.
Research by financial education charity, MyBnk, finds that 80 per cent of young care leavers want more help managing their finances, while 89 per cent have encountered challenges when trying to access financial education.
MyBnk highlights warnings that current care leavers are more likely to be unemployed, not in education, and at higher risk of homelessness compared with the overall youth population.
Katharine Sacks-Jones, chief executive of care charity, Become, is quoted in the report as saying it is "little wonder the statistics for young people leaving care are so grim – the links with homelessness, mental health and imprisonment are pronounced".
"We work with so many amazing, inspiring young care leavers – but they often tell us that they are thriving in spite of the system, not because of it,” she said.
MyBnks' report notes that just 33 per cent of care leavers said they received support managing money when they needed it and that 55 per cent of local authorities do not collect information about care leaver evictions.
One care leaver told researchers: “There were times when I’d have to go without any meals just to be able to feed my son and to have the house warm, and I had to put him first.”
Another care leaver added: “It’s hard to break habits that you already have. If you’re not taught about managing money, you're going to get into a habit of I’ve got this much in my bank, and it will be gone in the next hour.”
The report comes during the cost-of-living crisis which campaigners warn is likely to disproportionately impact young care leavers.
Young care leavers face financial independence from age 18, compared with the current UK average of age 24 for leaving the family home.
MyBnk has made recommendations to improve life chances for care leavers including clearer guidance from the Department for Education on financial education provision for care leavers.
They also encourage more financial education to be made available for care leavers that reflects diverse support needs.
The research has been launched as part of Become's National Care Leavers’ Week, aimed at celebrating UK care leavers and asking what needs to be done to improve the system.