The local authority is financially responsible for children in care until they are 18 years old. From 18, care leavers can claim benefits in their own right as an adult.
The benefits a young person can claim will depend on their personal circumstances, including how many hours they are working, whether they are a parent, have caring responsibilities, or are disabled.
These are the current rules and arrangements for care leavers claiming Universal Credit:
General support
- Care leavers can make an advance claim for Universal Credit, up to 28 days before their 18th birthday.
- Universal Credit is a single monthly payment, but care leavers with poor budgeting skills can request an Alternative Payment Arrangement. This can enable them to receive more frequent payments, or have the housing element of their claim made directly to the landlord. It is advisable to make this request to prevent rent arrears and subsequent financial hardship/homelessness.
- Care leavers with poor budgeting skills can request Personal Budgeting Support at any time.
- Care leavers can claim Universal Credit even when they are in full time Further Education. This does not include university. They will only be required to seek work during the summer holiday.
Housing element
- Care leavers can claim the housing element of Universal Credit when Staying Put at 18 years. This will become part of the payment to the former foster carer and most local authorities expect the young person to make this claim.
- The housing element of Universal Credit allows a single care leaver to receive support with payments for a one-bedroom home, until their 25th birthday. After this time, they will only be eligible for a room in a shared house, and the amount of benefits they receive will reduce. They will need employment income at this stage in order to pay their rent and avoid having to move out.
Work assessment
- Each care leaver will be individually assessed on their ability to work, and conditions may be applied to their payments, e.g. to engage in job search activities, attend interviews and meetings with their work coach. Not sticking to these conditions will result in a ‘sanction’ (reduction of benefits). If a care leaver is sanctioned they must contact their Personal Advisor and get their help to appeal, as most appeals by care leavers are successful. Care leavers can receive Recoverable Hardship Payments if sanctioned, but these are repayable.
- Care leavers can access the Work and Health Programme and receive personal help to find and keep a job.
See Turn2Us for information about benefits and to search for grants that might be available to young people in financial hardship.
All young people need a bank account and a passport for ID purposes before they leave care.