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The chair of the Education Committee has called on the government to rule out reducing Universal Credit (UC) for care leavers under 22, following a Department for Education (DfE) statement that “no decisions have been made”.
The clarification came in the government’s formal response to the Committee’s recent report on the children’s social care sector, which had recommended excluding care leavers from any plans to cut UC entitlements for young people.
In its response, published on 17 October, DfE said feedback from consultation would be considered before implementing any changes, adding that any savings from removing the health element of UC for under-22s would be redirected to fund the government’s new Youth Guarantee scheme.
Education Committee chair Helen Hayes MP said:
“A central theme of our report was that the Government must do all it can to support young care leavers, whose prospects are sadly far worse than their peers. Any cut in the financial support they get would be unthinkable. Ministers should offer a cast-iron guarantee that it will not cut Universal Credit to under-22s who have been in care.”
Hayes also welcomed the government’s commitment, through the Timms Review of disability benefits, to consult directly with young people on reforms to Personal Independence Payments (PIP).
Profit cap: The DfE said the Secretary of State would need to assess profit levels in the children’s services market before considering a cap on provider profits, but committed to consulting with the Committee as part of any future process.
Mental health: The department agreed that co-locating children’s social care teams and CAMHS could improve support for looked-after children and said it may pilot such models following the evaluation of its South-East Regional Care Co-operative.
Foster care: While not committing to a national fostering strategy, the government confirmed an additional £15 million for foster carer support in 2025–26 and said it would explore a potential national foster care register.
Kinship care: A new Kinship Allowance pilot, supporting up to 5,000 children across several local authorities, is due to launch in autumn 2025, though parity with foster care payments has not been guaranteed.
Rejected recommendations: The government declined to adopt proposals for a National Care Offer, a workforce strategy for the sector, a national sufficiency plan for placements, or a review of care for disabled children.
Hayes said the Committee would continue to press ministers for “bigger ideas” to tackle the long-standing challenges facing children’s social care.
“Whilst there are some positive actions discussed in this response, my colleagues and I will keep pushing the Government for bigger ideas that will move the dial and help revive the children’s social care sector after its long struggle with stagnant funding and rising levels of need.”
