On our own two feet
Our
latest report, On our own two feet, makes the case for an
asset-based savings account scheme for looked after
children.
We launched the On our own two feet report and
accompanying campaign in March 2011, and won cross-party support
from parliamentarians who agreed that the Government, as the
'corporate parent' of looked after children, must provide these
vulnerable young people with some financial security to give them
the opportunity to make positive choices when they leave care.
In partnership with Barnardo's, we called on HM Treasury to
provide £6.6m for a savings account scheme for looked after
children across the UK, with an initial payment of £250 for each
account and an additional payment of £100 for every year the child
remains in care.
Why do looked after children need financial support?
For young people in care, the transition to independent living
is a critical period and can have a massive impact on their future.
Care leavers are forced to be independent much younger than their
peers and with no family to support and guide them, it can be very
difficult. Recent research has concluded that continuing financial
assistance can be vital if care leavers are to have equal chances
as other young people. We know that many care leavers want to take
up high levels of education, training and employment, but don't
have the support and practical help to do so.
An asset-based savings account scheme for looked after
children will:
- Provide practical help when they start to live
independently
- Foster financial education and responsibility
- Help them make positive choices about their future
- Help them succeed in education and training
- Inspire them (and any family or friends) to save for their
future
Progress of our campaign
On the day before the Budget (22 March) the Chancellor, George
Osborne, announced that the Government will establish savings
accounts for looked after children and provide funding in the
region of £5m for the scheme. This was a very positive response to
the On our own two feet campaign.
We are now working with the Department for Education and the
Treasury to provide our expertise to set up an effective scheme as
soon as possible which meets the main points of our proposal set
out in the On our own two feet report. As the details of
the scheme are still to be worked out, we will be holding the
Government to account on its commitment, which we look forward to
making a reality for all looked after children.
Our Success
The Government has announced the details of the new
Junior ISA scheme. The new Junior ISA includes:
- £16.7m investment until 2015
- Ongoing funding to ensure that every child who has been in care
for a year or more will have a Junior ISA opened for them
-
The system will apply to
young people right across theUK
-
Every account opened with an
initial deposit of £200
-
A third party will run the
scheme and fundraise for additional top-ups
We're delighted that we have secured over twice the
investment that was originally agreed, and that this scheme will
reach over 55,000 children and young people across the UK in the
first year, increasing every year after that.
Further information