Care Leaver Payment (Scotland) Regulations 2026: equality impact assessment

Screening

Policy Aim

The Scottish Government recognises the challenges for young people with care experience who are moving on into adulthood and independent living. At any age and for any young person, moving on from home is a challenging time but when there are limited support networks in place, the challenge can be exacerbated.

Young people with care experience may have experienced adversity in their early life. The Independent Care Review highlighted and recognised the links between those with care experience and the increased risk of poor mental health, addiction, homelessness and exploitation. Care experienced people are reported to be over one and a half times more likely to experience financial difficulties and have more than double the chance of experiencing homelessness, mainly before age 30.

The Scottish Government is committed to keeping The Promise to all care experienced children and young people. In March 2022, the Scottish Government published the Promise Implementation Plan, which sets out the actions and commitments that will be taken across the Scottish Government to keep The Promise by 2030. This includes a continued commitment towards ensuring that young people moving on from care are provided with person-centred support to enable positive transitions from care to more independent living.

The Care Leaver Payment is a proposed one-off financial payment of £2,000 for young people transitioning out of care in Scotland. Its core purpose is to reduce the financial barriers that care leavers often face when moving into independent adulthood. Unlike many of their peers, care-experienced young people frequently lack informal support networks and family safety nets. This payment is intended to provide a financial foundation that supports stability and opportunity during a critical life stage.

The desired outcomes of the payment include easing financial pressure, promoting independence, and supporting positive transitions into adulthood. It also aims to reduce the inequalities that care leavers experience compared to their non-care-experienced peers. The proposed payment will complement existing supports such as Continuing Care, Aftercare, and the Care Experience Bursary.

The Care Leaver Payment contributes directly to several of Scotland’s National Performance Framework Outcomes. These include tackling poverty by sharing opportunities and wealth more equally, promoting fair work and access to quality jobs, and upholding human rights and freedom from discrimination. The payment supports Scotland’s broader commitment to equity, wellbeing, and inclusive growth.

Who will it affect?

The Care Leaver Payment would mainly affect young people in Scotland who are leaving care, such as foster care, residential care, or kinship care. These young people often move into independent living at a younger age than their peers and may not have the same financial or emotional support from family.

This support could have a positive impact on their wellbeing, helping to reduce stress and give them more confidence as they start adult life.

Other groups who may be indirectly affected include local authorities and support services, who may see reduced pressure if care leavers are more financially stable. The payment could also contribute to the wider national goal around supporting young people to thrive.

What might prevent the desired outcomes being achieved?

A one-off payment may not be enough to meet the full range of needs care leavers face, including any financial issues that they may have as the payment is not intended to be used for daily living expenses.

There is a risk that the payment could be misused if care leavers do not receive guidance on how to manage it effectively.