Care Leaver Payment – Guidance for Practitioners

2. Chapter Two: Advice, support and disregards for young people

Tax, Income and Benefits

The Care Leaver Payment is disregarded for tax, income and benefit purposes and is not intended to replace locally available support and/or grants to which young people are entitled. The payment is a national offer for young people as they leave care and should complement the support and services already provided by local authorities.

In addition, The Care Leaver Payment will be disregarded for the following purposes:

• When assessing the level of Council Tax Reduction Entitlement.
• When considering income sources for an individual in a statutory debt solution.
• When assessing Scottish legal aid eligibility.
• When assessing income and capital sources for an application to the Scottish Welfare Fund for a Crisis Grant or Community Care Grant.

Practice examples:

• A young person may be entitled to a payment under section 29 of the Children (Scotland) Act 1995. (sometimes called a Setting Up Home Grant) from their local authority. The young person is eligible to receive both this payment and the Care Leaver Payment.
• A young person has a full-time job, and they are eligible to receive the Care Leaver Payment. They will not need to declare their income before receiving the payment nor will it have an impact on the amount of tax that they pay.

Discussions about the Care Leaver Payment

As per regulation 14, local authorities must have discussions about the payment with young people and create opportunities to offer advice and assistance.

This support may be provided during specific discussions focused on the payment, or it may be helpful for the young person if discussions about the payment took place during Pathway Planning, as these meetings already take place in the lead up to them leaving care and transitioning to independent living.

If a decision is made to discuss the payment through regular Pathway Planning discussions, the responsible authority should ensure that entitlement to the Care Leaver Payment is discussed and specific support for the payment offered. In addition, this is an opportunity for the responsible authority to hear from the young person about how they would like to receive the payment and provides a space to discuss any concerns or questions the young person may have.

However, local authorities can decide where and when discussions about the Care Leaver Payment take place providing that they meet their statutory duty to provide advice and assistance. This includes supporting the young person to receive the payment safely and creating opportunities for discussion on how the payment may be spent.

The responsible authority should also ensure the young person is aware of the Care Leaver Payment guidance the Scottish Government has prepared for them which may help to answer their questions and will also signpost to wider support and services - Care Leaver Payment – Guidance for Young People

Suggested Uses

There are no restrictions upon use for the Care Leaver Payment. This is to recognise the agency of young people, to honour The Promise’s desire that care-experienced young people are supported to make independent choices, and to acknowledge that they are individuals with different needs and wants.

As set out in the purpose section of this guidance, the Care Leaver Payment is not intended to replace what is already available locally for young people as they move on from care. The payment is also not intended to be used for daily expenditure or

day to day living costs and young people should be encouraged during discussions to think of ways to utilise the payment which do not involve the aforementioned costs.

The policy intention of the Care Leaver Payment is to support applicants as they leave care and transition to adulthood and independent living.

When a young person is preparing to leave the care system, support and advice for the young person to access Care Leaver Payment safely must be provided and these discussions may fit best during their Pathway Planning. Local authorities may wish to signpost to or provide the young person with a copy of the Care Leaver Payment guidance. It is designed for those receiving the payment and contains additional information and signposts to support and services they may choose to engage when considering how to spend the payment.

It may also be appropriate to highlight again the different options available for receiving the payment safely, which could be by voucher or through the procurement of goods or services.

Practice Examples

• A young person leaves care at 16 and chooses to continue in full-time education. They want to learn to drive so they can commute to college without having to rely on public transport. They decide to use their £2000 Care Leaver Payment to cover the cost of driving lessons.
• After leaving continuing care at 21, a young person opts to receive their Care Leaver Payment in two equal instalments. They plan to save the first payment and spend the remainder on soft furnishings for their new flat which they are preparing to move into.

Financial Abuse and Safeguarding Concerns

Under regulation 4 of the Care Leaver Payment (Scotland) Regulations 2026, local authorities have the power to make the payment in whole or in part by voucher in cases where they believe the young person is at risk of financial abuse.

These regulations do not replace the National Guidance for Child Protection in Scotland. Should concerns around financial or other forms of abuse become apparent during discussions with the young person, local authorities should follow their existing child protection protocols and guidance.

In the circumstances where any form of abuse is suspected or confirmed, it would be appropriate for the local authority to discuss the safest way for the young person to receive their payment as per Regulations 4 and 5. These regulations give options for the method of payment and the opportunity to receive payment in two equal

instalments.

Adult Support and Protection (ASP) legislation defines an adult as anyone over the age of 16. The ASP Act introduced provisions intended to protect those adults who are unable to safeguard their own interests, who are at risk of harm and, because they are affected by disability, mental disorder, illness or physical or mental infirmity, are more vulnerable to harm than those who are not so affected. Young people aged 16 and 17 are covered by both ASP legislation – where they meet the eligibility criteria – and Child Protection guidance.

Section 3(2) of the Adult Support and Protection Act defines an adult as being at risk of harm if:

• Another person’s conduct is causing (or is likely to cause) the adult harm; or
• The adult is engaging (or is likely to engage) in conduct which causes (or is likely to cause) self-harm.

Adults can be at risk of harm in various settings, be it in their own homes, in the wider community, or in a hospital setting. They also may be placed at risk through inappropriate arrangements for their care in a range of social or healthcare settings. Perpetrators of harm can include families and friends, informal and formal carers, fellow users of residential and daycare services, fraudsters and members of the public.

A council must make inquiries about a person’s well-being, property or financial affairs if it knows or believes that the person is an “adult at risk” and that it might need to intervene (by way of this Act or otherwise) in order to protect the person’s well-being, property or financial affairs.

Adult Support and Protection Resources:

• iriss-understanding-age-cp-asp.pdf
• Adult Support and Protection (Scotland) Act 2007: Code of Practice - gov.scot
• Adult support and protection - Social care - gov.scot

Human Trafficking and Exploitation

If it is suspected that a young person is at risk of, or has previously been a victim of exploitation, such as criminal, financial or sexual exploitation, it would be appropriate for the local authority to discuss the safest way for the young person to receive their payment, highlighting the option for vouchers or goods to be given in whole or in part.

If the local authority identifies indicators of trafficking and exploitation or other forms of active risk or harm to the child, child protection processes should be engaged as this is a serious form of child abuse.

Local authorities should also consider a referral into the National Referral Mechanism (NRM). This is the Home Office’s framework for identifying victims of exploitation and/or human trafficking and ensures they receive appropriate support and protection. For children, local authorities and police (in addition to the Home Office) are designated First Responders within this framework and can make a referral into the NRM when they suspect a young person is a potential victim of trafficking or exploitation. Children do not need to consent to enter the NRM whereas adults do.

A referral into the NRM should follow on from child protection processes, as set out in the National Guidance for Child Protection. Referral to the NRM is made online (National Referral Mechanism Toolkit for First Responders in Scotland).

Trafficking and exploitation resources:

• Criminal exploitation: practitioner guidance - gov.scot
• Criminal Exploitation of Children (CEC) Framework for Practice - Children and Young People's Centre for Justice
• What is Financial Exploitation? | The Children's Society

Unaccompanied Asylum-Seeking Children (UAS)

Unaccompanied asylum-seeking children are 'looked after' children and will have the same entitlements as other 'care leavers' (if they cease to be 'looked after' on or after their 16th birthday). This includes the Care Leaver Payment, which they will be eligible to receive at the point at which they leave care, or continuing care.

Age Assessment

Many UAS young people arrive age 16 and over to Scotland and are placed in the care of a local authority. If there is uncertainty regarding their age, they are assumed to be a child (for the purpose of receiving support) whilst the age assessment is carried out.

If the young person is deemed a child, they will be considered “looked after” by the local authority and, on leaving the local authority’s care, they will be entitled to the payment.

If the young person is deemed to be an adult, local authorities should follow their existing protocol and signpost them towards adult services for advice and support.

Advice and Support

As per regulation 13, local authorities must comply should a young person request to have a supporter present during any discussions or meetings relating to the payment.

Unaccompanied asylum-seeking children are provided with an Independent Child Trafficking Guardian, which is provided by Guardianship Scotland, up until they are 18 (and thereafter on a discretionary basis until the asylum claim is granted). This is a legal requirement which stems from the Human Trafficking and Exploitation

(Scotland) Act 2015 that requires Scottish Ministers to make arrangements to enable the appointment of a guardian to “assist, support and represent a child” under set circumstances in relation to their asylum claim.

For the purposes of the Care Leaver Payment, the young person may request that their Independent Child Trafficking Guardian is present for any discussions or meetings.

Additionally, regulation 14 sets out that local authorities must provide an interpreter should one be requested or if the local authority deems this to be necessary.

It is crucial that unaccompanied asylum-seeking children are supported to understand what the payment is, what their choices are in relation to the method of payment and how to spend the payment safely, but without restrictions on what this will be spent on.

Local authorities should also ensure that the Care Leaver Payment guidance for care leavers is shared with the young person.

Accessing wider support and services

Through discussions with the young person, it may be helpful to signpost to available wider support and services which could be of interest.

Included below are some suggested routes to access such support. Please note that this is not exhaustive and is not intended to replace any existing procedures within your local authority area. This information is also available in the Care Leaver Payment guidance for young people.

Financial education

The listed organisations can provide support to young people who wish to learn about budgeting and money management:

• Money Ready
• The Scottish Throughcare and Aftercare Forum’s Real Toolkit
• Citizen Advice Scotland’s Money Talk Team
• My Money Matters
• Young Scot

If the young person you are supporting is between the ages of 15 to 17, they can learn about finances by taking part in the Stepladder Plus programme.

The Share Foundation can provide support to young people who are trying to locate and access their Child Trust Fund or Junior ISA.

Care Leaver Payment – journey of payment delivery

Practice example:

The Care Leaver Payment has been highlighted to a young person during Pathway Planning discussions since they turned 14, to raise awareness and to create the space for the young person to ask any questions they may have.

The young person is turning 16 in the coming weeks and is preparing to leave care. The Care Leaver Payment has been introduced, and the responsible authority know that the young person will be eligible to receive the payment. There are no existing concerns that the young person is experiencing – or is at risk of experiencing – financial abuse or exploitation, which would make them vulnerable to receiving the payment directly to their bank account.

The responsible authority invites the young person to a short meeting to discuss how they would like to receive the payment and provide an opportunity for them to highlight any questions or concerns which they may have. The meeting also creates a space for the responsible authority to hear what plans the young person has for the payment and whether they would benefit from any additional signposting to other support and/or services. The young person is reminded that they can choose to invite someone to accompany them to the discussion.

During this meeting, the responsible authority records that the young person wishes to receive their payment in two instalments. It is agreed that the first instalment will be paid into their bank account shortly after they leave care and the second instalment will be paid six months later. The young person is reminded that the responsible authority will contact them before the second instalment is due to check that there has not been any change of relevant circumstances.

The young person shares that they plan to use their first instalment for driving lessons and hopes that their second instalment will go towards saving for their first car.

The responsible authority invites the young person to share any questions or concerns that they may have and satisfy themselves that there have been no changes in the young person's life which may mean they are experiencing – or at risk of experiencing – financial abuse or exploitation.

The responsible authority reminds the young person that they will receive an email confirming their entitlement to the payment, but they are not required to take any action when this is received as payment will be made automatically.