Overview

This bill aims to increase the standard allowance of Universal Credit for young adults who have left the care system. Currently, care leavers under 25 receive a lower allowance than those aged 25 and over. This bill seeks to equalize these payments.

Description

The Universal Credit (Standard Allowance Entitlement of Care Leavers) Bill amends the Universal Credit Regulations 2013. Specifically, it changes the standard allowance amounts within the regulations. It defines a "care leaver" as someone aged 16-24 who was looked after by a local authority for at least 13 weeks (at least some of which was when they were 14 or 15) and is no longer in local authority care. The bill equalizes the standard allowance for care leavers with that of claimants aged 25 and over. The Secretary of State can make further regulations to manage the transition. The act will come into force three months after it is passed and applies to England, Wales, and Scotland.

Government Spending

The bill will increase government spending on Universal Credit. The exact figure is not specified in the bill itself, but it will be a rise in expenditure proportional to the number of care leavers receiving the benefit and the difference between the current and the equalized allowance.

Groups Affected

• Care leavers aged 16-24: They will directly benefit from the increased Universal Credit payments, potentially improving their financial stability.
• UK Government: Will face increased expenditure on Universal Credit.
• Taxpayers: Will indirectly contribute to the increased government spending.

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