Care Leaver Payment (Scotland) Regulations 2026: island communities impact assessment

Islands and Communities Impact Assessment

1. Step One – Develop a clear understanding of your objectives:

The Care Leaver Payment, as currently proposed, is a one-off payment of £2,000 for young people as they move on from care and into adulthood and more independent living. The purpose of the payment is to provide greater financial security for young people as they move on from care.

A full public consultation was held from November 2023 – January 2024, which received 70 responses from organisations and individuals. Further engagement was carried out in Spring 2026 with young people to ensure that the payment best meets their needs, and a Safeguarding Working Group took place with stakeholders to ensure that the right supports are in place.

The remit of the stakeholder working group was to engage with individuals who have professional experience with care leavers and was invited to consider and offer solutions on a range of topics relating to safeguarding and financial education. The group comprised representatives of the third sector and social care who work with and support young people as they leave care. This included Social Work Scotland, Citizen’s Advice Scotland, Guardianship Scotland, STAF and MyBnk.

It is intended that all young people who cease to be looked after by a Scottish local authority on or after their 16^th birthday will be eligible to apply for and receive the payment. This will be irrespective of where the young person lives therefore those in island communities will receive the payment, should they meet the eligibility criteria.

The purpose of the payment is to improve the financial security of young people as they move on from care into adulthood and more independent living. This is inclusive of those in island communities. The payment will not be prescriptive, which allows young people the free will to determine what the funds would be best spent on depending on their circumstances.

This is a new payment. The Care Leaver Payment was committed to, in some form, in the SNP Manifesto 2021, and subsequent Programmes for Government 2021/22, 2022/23 and 2025/26.

2. Step Two – Gather your data and identify your stakeholders:

Of the three local authorities entirely comprised of islands, Shetland Islands Council, Orkney Islands Council and Comhairle nan Eilean Siar, according to the Children’s Social Work Statistics, 9 young people left care in 2024. Additionally, in Argyll and Bute Council, Highland Council and North Ayrshire Council, which also encompass island communities, 84 young people left care in 2024.

Given the previous full public consultation on the Care Leaver Payment, and further engagement undertaken in Spring 2025 with care experienced young people, there is no need for further consultation as the Care Leaver Payment regulations build upon what was included in the public consultation and further engagement. Once the payment is underway, an evaluation will be undertaken, the details of which are yet to be confirmed.

Data from the 2023-24 Children’s Social Work Statistics show that for the three local authorities that comprise solely of islands, the number of young people leaving care is relatively small and fairly similar within those three authorities.

Comhairle nan Eilean Siar – 2

Orkney Islands – 3

Shetland Islands - 4

Local authorities will deliver the payment on behalf of Scottish Ministers, and no formal application process is required. The young people who will be eligible for the payment will be entitled to Continuing Care and Aftercare services, of which are provided through their respective local authorities and the payment will be automatically granted on their behalf.

3. Step Three – Consultation:

A full public consultation was carried out from November 2023 – January 2024, no further public consultation is required. Further engagement took place in Spring 2025, and a Safeguarding Working Group was established.

No direct concerns were raised previously by island communities, as provided that young people meet the eligibility criteria for the payment then they will be able to receive the payment, irrespective of their geographical location.

4. Step Four – Assessment:

Our assessment does not identify any unique or wider impacts on island communities, nor does it identify any potential barriers.

5. Step Five – Recommendation:

In preparing the ICIA, the Scottish Government has determined that the Care Leaver Payment is not likely to have an effect on an island community which is significantly different from its effect on other communities, including other island communities. As such, a full ICIA is not required to be completed.

ICIA completed by: Deborah Davies

Position: Policy Manager

Signature: Deborah Davies

Date completed: 14 Jan 2026

ICIA approved by: Gavin Henderson

Position: Deputy Director

Signature:

Date approved: 15 Jan 2026