Care leavers – managing your money

Managing money can be challenging, especially when living independently for the first time.

Your leaving care personal adviser can support you to develop skills and access advice relating to:

• budgeting and managing everyday living costs
• bank accounts, savings, credit and borrowing
• rent, household bills and Council Tax
• avoiding debt and accessing support if you experience financial difficulties
• understanding payslips, tax, pensions and benefits
• accessing financial entitlements, grants and bursaries available to care leavers.

Where needed, we'll help you access specialist money advice and support services.

• Debt
• Budgeting and bills
• Benefits
• Savings
• Setting up home allowance
• Council Tax

Debt

If you find yourself in debt, speak to your social worker or leaving care personal adviser straight away – it will get worse if you ignore it. 

Your adviser can help you make sense of the debt and give you advice on where to go for help. They can help with arranging repayment plans, making budget plans and understanding the financial decisions that may have caused this. 

Budgeting and bills

It can be confusing working out how to budget and to manage payments when you first live by yourself.

Before you turn 18, your social worker and people where you live will support you to develop independent living skills.

Once you turn 18, your leaving care personal adviser will work with you and help when you move into new accommodation. They will support you to:

• understand what is expected of you as a tenant
• set up payments for your bills
• access any discounts you may be entitled to. 

You can also be referred to Herts Young Homeless who offer outreach housing support service.

Benefits

Depending on your circumstances, you may also be able to claim benefits to support yourself. These include: 

• Universal Credit 
• Personal Independence Payment (PIP) 

• Housing Benefit 
• Working Tax Credit.

For more information, get in touch with your leaving care personal advisor, social worker or a charitable organisation such as Citizens Advice.

Savings

Whilst you were in care, Hertfordshire County Council put small weekly amounts of money into a Child Trust Fund. As you approach 18, you'll be given a letter with details of how to access these savings. 

Your leaving care personal adviser can provide basic advice and support you to access specialist financial advice, if you both feel this is needed.

Setting up home allowance

If you have ‘former relevant’ care leaver status, you're entitled to a setting up home allowance to buy household items when you move into your first property. If you have ‘qualifying’ care leaver status you would not be entitled to a setting up home allowance. 

If you didn't access your setting up home allowance before 1 April 2023, you'll be entitled to £3,000, broken down into

• starter pack – £150
• health and safety allowance – £100
• TV licence – £169.50
• main setting up home allowance – £2,580.50.

If you accessed your setting up home allowance before 1 April 2023, you'll have been entitled to £2,139, broken down into:

• starter pack – £50
• health and safety allowance – £50
• TV Licence – £169.50
• Main setting up home allowance – £1,869.50.

Council Tax

Care leavers between 18-21 years old (though not beyond your 21st birthday) are offered financial support by Hertfordshire County Council to pay their Council Tax bill.

This financial support is subject to you accessing relevant discounts and Council Tax support funds via your local council first, with Hertfordshire paying the remainder of your bill after this. 

You just need to speak to your leaving care personal adviser who will guide you through the process of how you can access this financial support.