The Government has been urged not to reduce Universal Credit support for young care leavers under the age of 22, after Ministers confirmed that “no decisions have been made” on the issue.
The warning came from the Chair of the Education Committee following the Department for Education’s (DfE) response to the Committee’s recent cross-party report on children’s social care. The Committee had recommended that care leavers be excluded from any proposed reduction in Universal Credit for under-22s.
In its response, published on 17 October, the DfE said it will “consider consultation feedback before implementing any changes,” and added that savings from the health element of Universal Credit for under-22s would be redirected to fund the Government’s new Youth Guarantee scheme.
The Government also addressed a key recommendation concerning profit caps on private companies providing children’s services. It said the Secretary of State “will need to be in a position to assess the levels of profits being made by providers” before deciding whether a cap is necessary, committing to consult the Committee as part of the process.
The DfE agreed with the Committee’s proposal to explore co-located mental health services between local authorities’ social care teams and NHS Child and Adolescent Mental Health Services, suggesting pilot schemes could follow after assessing the outcomes of its South-East Regional Care Co-operative model.
While the Committee called for a ‘national fostering strategy’, the DfE instead highlighted £15 million in additional support for foster carers in 2025–26 and said it may consider a national foster care register based on future cost-benefit evaluations.
However, the Government declined to match the financial support given to foster carers for kinship carers, though it confirmed a pilot Kinship Allowance from autumn 2025, designed to support up to 5,000 children across various local authorities.
In response to other recommendations, the Government confirmed that young people would be consulted as part of the ongoing Timms Review into potential reforms to Personal Independence Payments (PIP). But it rejected several proposals, including a National Care Offer, a national workforce strategy, and a national sufficiency strategy to ensure adequate placements for children in care.
Education Committee Chair Helen Hayes MP said the Government must prioritise supporting care leavers, warning that “any cut in the financial support they get would be unthinkable.” She added that Ministers should “offer a cast-iron guarantee” that care leavers under 22 will not see their Universal Credit reduced.
Hayes also welcomed the Government’s commitment to consulting young people in the Timms Review and said the Committee looked forward to working with Ministers if a profit cap on private providers is explored. “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,” she added.
