Care Leaver Payment (Scotland) Regulations 2026: child rights and wellbeing impact assessment (CRWIA)

Child Rights and Wellbeing Impact Assessment Template

1. Brief Summary

Type of proposal :

• Scottish Statutory Instrument

Name the proposal, and describe its overall aims and intended purpose.

The SSI will be used to create a scheme which will be known as the Care Leaver Payment (CLP). Section 93A(1) of the Social Security (Scotland) Act 2018 (as inserted by section 2 of the Social Security (Amendment) (Scotland) Act 2025) allows Ministers to make regulations to establish schemes to deliver financial assistance to individuals who have had experience of being in the care system.

The CLP will help fulfil the commitment made in the Promise Implementation Plan published in March 2022 to ‘provide some additional financial security for young people with care experience and help reduce some of the financial barriers that young people face whilst moving on from care and into adulthood and more independent living’.

The scheme will deliver a one-off payment of £2000 to young people moving on from care between the ages of 16-21. This payment aims to provide eligible care leavers with additional financial support as they move into more independent living.

Start date of proposal’s development:

The CLP, in some form, was originally committed to in the SNP Manifesto 2021, then subsequent Programmes for Government 2021-22, 2022-23 and 2025-26. Work has been underway to develop the Care Leaver Payment since the original commitment in 2021.

Start date of CRWIA process: March 2025

2. With reference given to the requirements of the UNCRC (Incorporation) (Scotland) Act 2024, which aspects of the proposal are relevant to/impact upon children’s rights?

The CLP will provide a one-off payment for eligible young people leaving care, with the intention of helping to reduce some of the financial barriers that young people face in the transition to adulthood and more independent living. The CLP aims to provide eligible care leavers with additional financial support and will therefore have a direct impact on young people moving on from care between the ages of 16 and 21. There is a positive impact identified in relation to the best interests of the child (article 3), life survival and development (article 6), respect for the views of the child (article 12), children unable to live with their family (article 20) and, social security (article 26).

Article 3 – Best interests of the child

Eligible care leavers have the ability to receive the payment in different forms, including in the form of a voucher or paid directly to a provider of goods or services on their behalf and in instalments.

Article 6 – Life survival and development

The payment will help to support eligible young people to develop to their full potential by providing additional financial security at the point of leaving care, this will help young people to flourish and create a level of equity with their non care experienced peers.

Article 12 – Respect for the views of the child

Eligible care leavers will be able to decide, and request, a form of payment which best meets their needs. They can do this through discussions with their social worker in existing planning meetings or following advice and assistance from the authority paying them the CLP.

Article 20 – Children unable to live with their family

The payment will help to support eligible care leavers who are unable to live with their family. The payment will provide additional financial security to eligible young people as they move on from care and into adulthood and more independent living, alongside other existing universal support services.

Article 26 – Social security

The payment will be disregarded for the purposes of income, tax and entitlement to other benefits. Therefore, the payment will not negatively impact on a young person’s entitlement to other forms of social security and universal support services.

3. Please provide a summary of the evidence gathered which will be used to inform your decision-making and the content of the proposal

Evidence from:

• existing research/reports/policy expertise

Research^[1] shows that care leavers in Scotland face significantly worse financial and social outcomes compared to their peers. They are more likely to experience poor educational attainment, unemployment or low-paid work, mental health issues, and homelessness. The transition from care to independent living is often abrupt and unsupported, leading to increased vulnerability, financial hardship and housing instability. These disadvantages are compounded by a lack of social capital and disrupted childhoods, making it harder for care leavers to manage adult responsibilities and sustain stable living arrangements.

• consultation/feedback from stakeholders

The ‘Care Leaver Payment Consultation’ analysis^[2] revealed strong and widespread support for the introduction of the CLP. Respondents—both individuals and organisations—consistently recognised the unique challenges faced by care-experienced young people as they transition into adulthood. The payment was viewed as a positive and necessary intervention to help address the financial and emotional pressures associated with care leavers.

Many respondents highlighted that the payment could provide a critical financial cushion during a period of significant change, helping young people afford essentials such as housing deposits, furniture, or education-related costs. It was also seen as a way to promote dignity, independence, and equality, offering care leavers a similar level of support that many of their peers receive from family.

In addition to its practical benefits, the payment was described as a symbolic gesture of recognition—acknowledging the state’s role as corporate parent and affirming the value and potential of care-experienced young people. Overall, the feedback strongly endorsed the payment as a meaningful step toward improving outcomes and reducing disadvantage for care leavers in Scotland.

• consultation/feedback directly from care-experienced children and young people

The consultation also included feedback from care-experienced young people, who demonstrated strong support for the proposed CLP, with many highlighting its potential to ease the transition into independent living. The payment was seen as both a practical and symbolic form of support. Several young people described how it would help them afford essential items such as furniture, or education-related costs, with one noting, “It would help me feel more secure when I move out—like I’m not starting from nothing.” Others emphasised the emotional value of the payment, viewing it as a recognition of their experiences and a step toward equality. As one respondent put it, “It’s not just about money—it’s about being treated fairly and having a chance.” Overall, the feedback from care-experienced young people suggested that the payment could play a meaningful role in promoting financial stability, confidence, and a sense of dignity among care leavers.

Further engagement with care-experienced young people echoed the positive feedback received during the initial consultation. Young people shared a variety of ideas for how the proposed payment could be used, including driving lessons to build independence, holidays to support wellbeing and create lasting memories, laptops to improve connectivity and opportunities and contributions to home grants to help establish a safe and stable living environment. These suggestions reflect the diverse aspirations and practical needs of care-experienced young people.

4. Further to the evidence described at ‘3’ have you identified any 'gaps' in evidence which may prevent determination of impact? If yes, please provide an explanation of how they will be addressed

While initial feedback has been positive, there is limited quantitative data on the long-term financial outcomes for care leavers who receive similar payments in other parts of the UK. Whilst this does not prevent determination of impact, qualitative data in this regard would strengthen the assessment of impact.

A similar scheme was launched by the Welsh Government in 2022, ‘The Basic Income for Care Leavers in Wales’ pilot provides care leavers with a monthly payment of £1,600 (before tax) for a period of 24 months following their 18th birthday.

According to the Second Annual Evaluation Report (2025) led by Cardiff University^[3], the scheme has had a notably positive impact. Young people reported feeling more financially secure and less anxious about meeting basic needs, which in turn allowed them to focus on education, training, or finding meaningful employment. The payment also contributed to improved mental health and a greater sense of autonomy. While the report acknowledges that financial support alone cannot address all challenges care leavers face, it concludes that the basic income plays a transformative role in supporting a more stable and hopeful transition into adulthood.

This evidence base is expected to be further strengthened as once the payment is underway, an evaluation will be undertaken, which will take into account the experience of administering the scheme and the impact it is having.

5. Analysis of Evidence

Evidence from both research and consultation strongly supports the introduction of a CLP in Scotland as a means of improving outcomes for care-experienced young people. The Welsh Government’s ‘Basic Income for Care Leavers’ pilot has shown that sustained financial support, for eligible care leavers, can significantly reduce stress, improve mental wellbeing, and enable them to focus on education, employment, and stable housing. Participants in that pilot reported feeling more secure, empowered, and able to make independent life choices.

In Scotland, the 2024 Care Leaver Payment Consultation analysis revealed widespread support for the proposed payment. Respondents, including care-experienced young people, emphasised that the payment could help reduce financial barriers, improve financial security, promote independence, and provide a sense of recognition and dignity. The consultation analysis also highlighted that many care leavers lack the informal support networks available to their peers, making targeted financial support even more vital.

The evidence suggests that the CLP will not only address immediate financial needs, but will also contribute to longer-term resilience, equality, and improved life chances for care-experienced young people in Scotland.

The CLP will also be automatic; this ensures the rights of eligible care leavers to receive the payment are upheld, through negating any need for the young person to apply.

6. What changes (if any) have been made to the proposal as a result of this assessment?

Whilst no changes have been made to the CLP as a result of this assessment, further work has been undertaken to explore any concerns raised during the previous consultation on the CLP, through an external Safeguarding Working Group.

The group comprises representatives of the third sector and social care who work with and support young people as they leave care. This includes Social Work Scotland, Citizen’s Advice Scotland, Guardianship Scotland and Scottish Throughcare and Aftercare Forum (STAF).

The group was invited to consider and offer solutions on a range of topics.

The output from this group will inform the package of guidance and support that will be published when the CLP is introduced.