Care Leaver Payment – Guidance for Practitioners

1. Chapter One: The Care Leaver Payment (Scotland) Regulations 2026

Regulation 1: The Care Leaver Payment (Scotland) Regulations 2026

The Care Leaver Payment (Scotland) Regulations 2026 came into force on 1^st April 2026. The duties in the Regulations are, therefore, effective from that date.

Regulation 2: Responsible Authority

This regulation sets out the definitions relevant to the Regulations. In particular, a ‘responsible authority’ is the local authority who the eligible young person was looked after by on or after their 16th birthday.

In some instances, a young person may have been looked after by different local authorities during their care journey. It is the duty of the responsible authority, however, to deliver the payment to the young person.

Regulation 3: Eligibility for a Care Leaver Payment

A young person will be eligible for the Care Leaver Payment if:

(i) they were looked after on or after their 16^th birthday and they left care on or after the 1^st April 2026 (and are not in receipt of continuing care on that date), or

(ii) they left continuing care on or after 1^st April 2026.

These eligible young persons are commonly referred to as ‘care leavers’.

Practice examples:

• A young person who is looked after by their local authority and who will turn 16 on 2^nd April at which point they will cease to be looked after, will be eligible to receive the payment when they leave care or continuing care.
• A young person who was looked after on or after their 16th birthday but has already left care/continuing care prior to 1st April 2026, will not be eligible to receive the payment.
• A young person who was previously looked after by their local authority before their 16^th birthday and turns 16 on or after 1st April 2026, will not be eligible to receive the payment.

Eligible young people may only receive the Care Leaver Payment once. Therefore, if they have already received the payment, they are not entitled to receive it again.

Regulation 4: Value and Form of the Care Leaver Payment

The value of the payment is £2000.

Whilst it is intended that the payment is taken in money, there may be circumstances where the young person would prefer to take the payment (in whole or in part) in the form of a voucher, or direct payment to a provider of goods or services on their behalf.

The responsible authority has the power, with the agreement of the young person, to give the payment in the form that the young person desires.

Practice examples:

• A young person does not have access to a bank account and has requested that a bike is purchased for them using their Care Leaver Payment. They live in a rural area, and the bike will enable them to access services in their local community.
• After leaving care at 18, a young person is looking for employment. They decide to use their Care Leaver Payment to buy a laptop so that they can search for jobs online, prepare CVs and attend interviews virtually if required. They request vouchers for a retailer where this can be purchased.
• A young person, following discussions during their Pathway Planning, decides to receive half of their payment in cash and requests that the other £1000 is paid by voucher. This approach supports their plans for budgeting as they prepare to move into independent living and their wish to choose home furnishings for their new flat.

Financial Abuse and Exploitation

The form of the payment may be different in circumstances where financial abuse or exploitation is known or suspected.

Should the responsible authority have concerns that a young person may be at risk of financial abuse or exploitation, regulation 4(4) enables the responsible authority to make the payment in whole or in part in the form of a voucher without the young person’s agreement. Responsible authorities will require to be able to justify their decision-making in matters of this type by having regard to regulation 4(5).

Responsible authorities should note regulation 4(5) and that in making such a decision, they will need to demonstrate that they have:

• had regard to the individual’s circumstances (so far as those circumstances are known to the responsible authority),
• given the individual the opportunity to express their views, and
• had regard to any views expressed by the individual.

When determining how to provide support, the responsible authority must consider the young person’s individual circumstances and ensure they have a meaningful opportunity to express their views. While payments may be made in the form of vouchers or through direct payments for goods/services, these approaches will not mitigate all situations where financial abuse or exploitation may occur.

It is therefore essential that social workers continue to apply relationship-based practice to assess the young person’s needs and safeguard against financial abuse and exploitation. This includes ongoing dialogue, professional judgment, and collaboration to identify risks and implement protective measures tailored to the young person’s context.

There is further guidance on safeguarding in Chapter 2 of this guidance.

Practice example:

• During discussions with a social worker, a young person discloses concerns that an adult in their household may coerce them into giving them their Care Leaver Payment. The young person agreed that in this scenario the safest way to receive the payment is by the form of a voucher.
• You notice indicators that the young person is at risk of exploitation, including criminal exploitation, where they may be pressured or groomed by an individual, group, or online contact to use their Care Leaver Payment to carry out financial or criminal activities for someone else’s gain. The local authority shares their concerns with the young person and invites them to express their views. Following their assessment on the risks the young person may face if the payment is made into their bank account, the local authority informs the young person that they have taken the decision to pay by vouchers.

Regulation 5: Making Payments

A young person should be given the payment at the point at which they leave care, or their continuing care placement. A young person is not required to apply to receive the Care Leaver Payment.

Practice examples:

• A young person is fifteen years old on 1st April 2026 and is looked after by their local authority. Upon turning 16, they leave care. When they leave care, they should receive their Care Leaver Payment.
• A young person is fifteen years old on 1st April 2026 and is looked after by their local authority. Upon turning 16, they choose to remain in Continuing Care. When they leave Continuing Care, they should receive their Care Leaver Payment.

Point of payment

Payment should be made as soon as reasonably practicable after the young person leaves care. It is expected that payment should be made promptly to ensure the young person receives additional financial support alongside existing entitlements during their transition from care into independent living but the regulations afford some flexibility depending on the particular circumstances.

If a young person is choosing not to engage with their social worker, despite their awareness that if they do not engage/supply bank details they will not receive a payment, then the responsible authority should consider how best to record that the young person has not received their payment. If the young person were to request the payment at a later date, after they have left care/continuing care, then the responsible authority is still bound to deliver this payment to the young person.

The option of a savings account for the young person could be a practicable suggestion where young people want to ‘delay’ receiving the payment for an extended period, without them having to re-engage with the responsible authority at a later date.

We would encourage responsible authorities to ensure good record-keeping of payments processed.

Frequency of payments

Young people, in discussion with the responsible authority, can request that they receive their payment in two equal instalments. The first instalment must be paid as soon as reasonably practicable after the young person leaves care or Continuing Care.

The responsible authority must agree a payment date for the second instalment with the young person. Both payments should be paid within a 12-month period following advice and guidance from HMRC as these payments are disregarded for tax, income and benefit purposes.

Where the young person requests their payment to be made in two instalments, the responsible authority should contact them prior to the second payment being made to confirm that their bank account details have not changed if receiving the payment into their account, or to discuss vouchers or the procurement of goods/services.

Practice example:

• During Pathway Planning discussions, the young person requests to receive their payment in two instalments paid to their bank account. It is agreed that the first instalment will be paid at the point that they leave care and a date for their second instalment is agreed six months later. Two weeks before the second instalment is due, the local authority contacts the young person to check their bank account details are still correct.

Regulation 6: Notification of Entitlement

The responsible authority must inform the young person of their entitlement. This must be done via e-mail or letter, so that the young person has a written record. The young person is not required to reply to the notification, and it has no impact on them receiving the payment.

The responsible authority can assume that the young person has received their written record by e-mail or letter, 48 hours after it was issued, unless advised otherwise. As above, the young person is not required to respond to this letter..

Notifications should be sent to an entitled young person as soon as reasonably practicable after the responsible authority has made a decision that they are entitled to the Care Leaver Payment.

It is expected that discussions and planning related to the Care Leaver Payment will be incorporated into existing Pathway Planning processes or other meetings with the young person, which may differ between local authorities. The written record is aimed at ensuring the young person has a record of the details discussed during these conversations which they can show to, or otherwise share with, others. The written record should confirm that the young person is entitled to the payment because they meet the eligibility criteria and detail how the payment will be made, including information on how many payments, the method of payment (e.g. bank transfer, vouchers or goods/services) and if by bank transfer, confirmation of which bank account the payment will be made.

Regulation 7: Right to request entitlement determination

If a young person has not received notification that they are entitled to a Care Leaver Payment, but believes that they are entitled to receive one, they are able to contact any local authority to check if they should have received one.

Where a local authority receives a request to determine a young person’s entitlement to the Care Leaver Payment and they are not their responsible authority, they must:

• As soon as practically possible, and with the agreement of the young person, take reasonable steps to establish if there was a responsible authority for the young person.
• If a responsible authority is identified, the local authority to whom the request was made should be sent the request to the responsible authority so that they can determine eligibility for the Care Leaver Payment.
• If a responsible authority is not identified, then the local authority to whom the request was made should, as soon as reasonably practicable, make a determination on the person’s entitlement to the Care Leaver Payment and notify the individual of that determination. (Note: this notification should confirm their decision about the young person’s entitlement to the payment and why they have decided that).

A ‘determination’ means the decision by a local authority as to whether the young person is entitled or not entitled to the Care Leaver Payment.

A responsible authority is the local authority that looked after an eligible young person before they left care or while they were in continuing care. The young person may have been looked after by different local authorities in their care journey. It is only the responsible authority that makes a Care Leaver Payment.

If a responsible authority cannot be identified, this likely means the young person is not entitled to receive the Care Leaver Payment due to them not having being looked after on, or after, their 16^th birthday.

Where a local authority makes a determination on a person's entitlement to the Care Leaver Payment, they must, as soon as reasonably practical:

• Notify the individual of the determination, the reasons for it and any other information the local authority deem to be appropriate.
• This notification should be done in such a way that leaves the individual with a record of the information which they could show to or share with others.

Practice example:

A young person was looked after by Council A between the ages of 8-10. At age 18, they have moved to Council B and want to know if they are entitled to a Care Leaver Payment. The young person asks Council B.

Council B tells the young person that as they were looked after only between ages 8-10 they are not entitled to the Care Leaver Payment. The young person does not have a ‘responsible authority’ as they were not looked after on or after their 16^th birthday.

If the young person told Council B that Council A looked after them, but they are not sure when they were looked after, Council B should contact Council A and request that they make contact with the young person to ascertain eligibility. No further action is needed by Council B. Council A will be responsible for explaining to the young person that they are not eligible.

If the young person is not aware of who looked after them but believes that they were looked after, Council B should take reasonable steps to find out if the young person was looked after on or after their 16^th birthday on or after 1^st April 2026 or left Continuing Care on or after 1^st April 2026 and therefore has a ‘responsible authority’.

Reasonable steps could involve asking the young person about their history of care to ascertain where and when they were looked after or/and documentation that may be able to help identify which local authority had responsibility for the young person (if any).

If Council B cannot find a responsible authority that would suggest that the young person is not entitled to a Care Leaver Payment, because they were not looked after on or after their 16^th birthday or in continuing care on or after 1^st April 2026. As part of their decision of the young person’s entitlement, they should inform the young person they are therefore not entitled to receive the Care Leaver Payment.

Regulation 8 - Right to review of an entitlement determination

Where the responsible authority decides that a young person is not entitled to the Care Leaver Payment, the young person may request a review of that decision.

The young person must contact the authority who made the initial decision to request a review and indicate why they believe they should have received the Care Leaver Payment.

This request must be made no more than 12 months after the date on the notification letter or email to the young person informing them of the decision not to award the payment.

The authority may ask the young person to submit their request for a review in writing, via e-mail or letter.

If the authority does not receive sufficient detail to enable them to consider the review, they may contact the young person to request further information.

A request for a review may only be made by a young person where they have received notification of a decision that they are not entitled to the Care Leaver Payment.

Regulation 9: Duty to review entitlement determination

Reviews must be carried out by the authority who made the initial decision. The person(s) undertaking the review cannot have been involved in the original decision.

The review must be completed as soon as reasonably practicable after receiving the request.

The young person should not be required to wait an unreasonable period for a review. This is to ensure that if the young person is entitled to the Care Leaver Payment, that they will receive it whilst they are still transitioning out of care, to align with the policy intention for the creation of the payment.

A suggestion of what would mean ‘reasonably practicable’ would be 90 days after receiving the request, however this is not a statutory timescale, and we understand that there may be occasions where this limit is exceeded.

Regulation 10: Notification of outcome of review

The review decision must be communicated to the young person in writing via email or letter so that the young person has a written record of the decision. Where appropriate, the decision may also be communicated to the decision in person, by telephone or other communication methods agreed with the young person.

Should the review outcome mean the young person is entitled to receive the Care Leaver Payment, this communication must include how and when the payment will be made.

Regulation 11: Presumption for purposes of regulations 6(1), 7(5) and 10

The responsible authority or local authority can assume that the young person has received their written record by e-mail or letter, 48 hours after it was issued, unless advised otherwise.

Regulation 12: Obtaining Information

The responsible authority or local authority may request information from the young person when considering their eligibility for the Care Leaver Payment, or if they have been asked to review a determination.

If the request to review a determination requires more detail to enable the responsible authority to make a decision, they may request the young person provides further information relevant to this matter.

Regulation 13: Right to a Supporter

The young person is entitled to have a supporter with them during any meetings or discussions related to the Care Leaver Payment.

The supporter can make representations on behalf of the young person and will provide them with support during any meetings or discussions.

The Care Leaver Payment regulations do not require the responsible authority or local authority to provide or pay for a supporter.

Regulation 14: Duty to Provide Advice and Assistance

Once eligibility for the Care Leaver Payment has been confirmed, the responsible authority must provide advice and assistance to the young persons in relation to the payment. This support could be provided during specific discussions focused on the payment or during Pathway Planning meetings with the young person.

This duty also includes providing an interpreter if one is requested, or if the responsible authority deem it to be necessary.

Please see Chapter 2 for further information on this duty.

Regulation 15: Liability for Care Leaver Payment given in error

Unless they are excluded from liability (see guidance on Regulation 16 for exclusions criteria), a young person is required to repay the responsible authority the value of any Care Leaver Payment which was paid to them in error.

The young person’s liability is limited to the difference in the value of the [over] payment they received and the payment (if any) that they would have received had no error been made.

An error for the purposes of regulations 15 and 16, means an error made when making payment under The Care Leaver Payment (Scotland) Regulations 2026 or an error which led to the decision by the responsible authority to make payment incorrectly or based on incorrect or misleading information.

Regulation 16: Exclusion from Liability

The young person is not liable to repay a payment made in error if:

a) The error was not the young person’s fault, or;

b) The error which was made is not something the young person could reasonably expect to notice.

For the avoidance of doubt, an error is the young person’s fault if the error is caused or contributed to by them through:

a) Providing false or misleading information or:

b) Causing another person to provide false or misleading information

When considering the information a young person has provided to the responsible authority, this can also include any statements they have made.

When considering whether the error is something which the young person could reasonably be expected to notice, regard should be given to the value of the payment made in error in comparison to the value of the payment due.

The responsible authority should also consider what information about the payment was given to the young person prior to or immediately after the payment which would have demonstrated payment was made in error based on incorrect information or wrong assumptions. (This does not include any information the responsible authority provided to the young person informing them why they believe payment has been made in error).

Regulation 17: Consideration of the Debtor’s Circumstances

When making a decision to recover a payment made under The Care Leaver Payment (Scotland) Regulations 2026, the responsible authority must consider the financial circumstances of the young person who owes money, based on the information which is known to them.