One in six councils exempt care leavers from council tax

The charity has revealed that 26 councils are either currently offering or plan to offer an exemption for care leavers as part of efforts to help them avoid debt and give them more time to learn how to manage their finances.

A total of four councils - Redbridge, Tower Hamlets, Liverpool and Dudley - have announced exemption plans in the past three weeks.

"Care leavers have often experienced a really difficult upbringing and they may have experienced abuse, neglect or family breakdown, which can have a big impact upon their life chances," said Sam Royston, director of policy and research at The Children's Society.

"Without the family support most young people get as they become adults, care leavers often struggle to juggle their household bills and make ends meet.

"Many find themselves in debt, or having to go without food or other basic necessities. To expect some of the country's most vulnerable young people to start paying council tax just days after leaving care is setting them up to fail.

"That's why The Children's Society is continuing to call on local authorities to exempt care leavers from paying council tax. It's a relatively inexpensive policy for councils, although some may not realise this. It's targeted at a small, vulnerable group and it has received cross-party support nationally and in many local councils."

Tower Hamlets mayor John Biggs said 300 care leavers are set to benefit from exemption. They will be exempt from charges until they are 25, whether they live in or outside the borough. The exemption will also be backdated to April.

"As corporate parents, we are responsible for keeping our care leavers safe and supporting them to have successful lives. We are setting an example for others and we know that our borough will be better off as a result," he said.  

Amy Whitelock Gibbs, lead member for education and children's services at Tower Hamlets, added: "When a young person leaves care and begins to manage their own financial affairs for the first time, they can easily fall into debt, especially without vital advice and practical support from family.

"This exemption will give our care leavers a helping hand in their first step towards independence, helping them to avoid debt as they learn to manage their finances."

Dudley Council's cabinet backed plans last month to launch a consultation on adding a new "vulnerable category" covering 18- to 24-year-old care leavers to its council tax reduction scheme from next year.

This will be means tested and could see some care leavers offered a full exemption from council tax payments. A consultation is due to take place on the plans this summer, with a final decision expected by councillors in the autumn.

"For young people who are leaving care and on low incomes, there is already a huge range of challenges they face, so we want to support them as much as we can," said Steve Clark, lead member for finance at Dudley Council.

"Reducing, or even removing in some cases, their council tax will give them a helping hand to cover other costs they may face as they make the move from care to independence."

Islington council scrapped the charge for young people living in the borough who had left care from any local authority in April.

In July last year, the government's care leavers' strategy pledged to improve support for this group of young people, including piloting "staying close" arrangements so that young people leaving residential care can remain near to their children's home and continue to access support.
 
The Children and Social Work Act, which became law in April, includes provision to create "a care-leavers covenant" setting out support for care leavers. However, details have yet to emerge of what this will include.

Dave Hill, immediate past president at the Association of Directors of Children's Services, said: "Many councils support care leavers in different ways and ADCS welcomes that support. These decisions are made locally and are part of the difficult financial balancing act that each council has to take, considering other financial circumstances."