Children and Social Work Bill [HL] Debate

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Department: Department for Education
Baroness Bakewell of Hardington Mandeville Portrait Baroness Bakewell of Hardington Mandeville
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My Lords, I support the amendment, to which I have added my name, and am grateful to the noble Earl, Lord Listowel, for moving it. It covers a great deal of important ground. As I said earlier, I attended the briefing by the Children’s Society last week, where some of the statistics provided were compelling. I agree with much of what has already been said and will have to amend my speech as I go along.

Often, care leavers moving into independent accommodation are managing their money for the first time. They find this very challenging due to the lack of financial education prior to reaching the age of 18. They have very low levels of income and often fall into debt.

As we have heard, working tax credits are not available to care leavers at a time when they have full responsibility for running a household for the first time. Some will have apprenticeships, but the apprenticeship rate is £3.40 an hour—no doubt based on the assumption that young people in apprenticeships live with their parents. This is hardly likely to keep care leavers out of debt.

A study undertaken by the Joseph Rowntree Foundation shows that, as the noble Lord, Lord Watson, said, 57% of care leavers have difficulty managing their money, and almost half of local authorities in England fail to offer adequate financial education for care leavers. We have already heard about the exceptionally high number of care leavers being sanctioned under universal credit.

The amendment proposes a national offer of a range of support for care leavers to help them towards the age of 25. Some will not necessarily need that support for that long, but others will take time to get to grips with their responsibilities and budgetary control of limited resources. Council tax exemption until age 25 appears an easy way to assist. As we have heard, very few local authorities exempt care leavers from council tax. However, 1,800 young people are currently exempt from council tax where local authorities have recognised that additional help is needed for this vulnerable section of our community. The costs are not great to individual authorities. Cheshire East Council estimates that it costs it £17,000 per annum in total—a small cost compared to the relief it brings to young people struggling to get to grips with living independently.

The noble Earl, Lord Listowel, said that he had heard from Jack, and so did I. Jack is now a care leaver in his early 20s who was in care from four to 18. Jack felt that lots of money was thrown at looked-after children on activities—in his case, frequent trips to Alton Towers, clothing allowance and pocket money. He felt that that was far more money than a normal family could afford for their children. As a mother, I echo that. I could not afford to take my children on frequent trips to Alton Towers, although they would very much have liked that. He said that it cost more to keep him in care than to send him to Eton. When he left care, however, he did not even have enough money for the bus or heating. Jack’s view, which I thought was very practical, was that his activity money would have been better used after he was 17 to fund driving lessons.

I share Jack’s view that some of the money currently spent on looked-after children could be used to much better effect. I am conscious that we in this House may not impose additional financial burdens on the Government, but the Bill is starting here. We must find ways to support these young people who, as care leavers, are disproportionately represented in our prison and probation services. Reprofiling the money currently spent might be one way to achieve the aims of the amendment.

I support the noble Earl, Lord Listowel, in his amendment, and we on this side of the House are prepared to support him in a Division on this critical issue if necessary.

Lord Bishop of Chester Portrait The Lord Bishop of Chester
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My Lords, I add my strong support for the amendment, which was moved by the noble Earl with a mastery of succinctness and clarity across the issues he covered, backed up by the other noble Lords who spoke. There are powerful arguments for the amendment.

We have just been talking about the importance of relationship education and support. That is exactly what care leavers typically do not have—by definition, if you like. Think of the degree of support that your Lordships have had to give to your children at the age of 19 to 24 and beyond. I see some smiles on your Lordships’ faces, and I could smile myself and put a price tag on it. It does not exactly run into millions of pounds, but it feels like it.

Giving a bit of extra help to those at that stage in their lives has a great deal to be said for it. Even if it cannot be given in all four areas set out by the Children’s Society in its briefing, some, at least, should be considered very carefully—I add that it is a Church of England society. I think the work it has done here is a model of professionalism. My right reverend friend the Bishop of Durham spoke to this on Second Reading, but he cannot be here today and I am happy to pick up the baton from him.

We are dealing with a group of people who typically have very little support—support we almost assume that our own children need at that age—so we must help with anything we can do. Earlier, I heard the Minister say that the danger with having a minimum or national standard is that it would interfere with what is provided locally. It is not either/or; it is both/and, surely. I did hear somebody on the television just a few days ago saying there is an important role for the state. I agree with the Prime Minister on this, and I think that there is a role here for national standards and encouragement.

Wonder of wonders, Cheshire East has been mentioned. It is a Conservative-run authority, blazing a trail, but should we leave it to a postcode lottery so that some authorities do this and some do not? That is very discouraging if you see it in those terms. While this is led by local authorities and a local offer, it does seem to me there is a strong reason for having a certain degree of national offer and national minimum standards. I think that is the spirit behind this amendment, and I strongly support it.

Lord Warner Portrait Lord Warner
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My Lords, I support the amendment. However, I would like to put a very specific question to the Minister to which I would welcome a reply. The Minister will recall that, when you stand at the Dispatch Box, you speak for the Government, not just your department. When this Bill began, there was another Government he was speaking for, but he is now speaking for a new Government. That new Government have expressed great concern about helping those who are just getting by. This group of people are barely getting by and in some cases are not getting by. What this amendment does is provide a proposition which this Government—not the previous Government —need to consider. Can the Minister say whether this issue has been put to the new Ministers in the Department for Work and Pensions and DCLG? It would be very helpful to know whether this Government have considered this issue at a ministerial level and what their view is.

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Lord Ramsbotham Portrait Lord Ramsbotham
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I do not wish to prolong this, but it is practitioners who have raised this question with me because they are unclear. Although young people have the right every year, it is an opportunity basis that they are considering.

Lord Bishop of Chester Portrait The Lord Bishop of Chester
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My Lords, I thank the Government very much for the change they are bringing in—

Lord Brougham and Vaux Portrait The Deputy Speaker
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The Minister has responded.

Lord Bishop of Chester Portrait The Lord Bishop of Chester
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I thought the Minister was just making a clarification.

Lord Nash Portrait Lord Nash
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I am sure that we can clarify this. I myself felt that the idea someone would have a one-off chance was not a good one. Therefore, as I said, the intention is that they will get a regular chance—at least every year—to change their mind if they have previously said no. I do not think we should allow any way for anybody to get out of that. I am happy to talk to the noble Lord, Lord Ramsbotham, outside the Chamber to clarify that. I am sure that we can resolve this.