Call for trust funds for care leavers

The government should consider introducing
trust funds for care leavers, according to a discussion paper being
debated this week by the Institute for Public Policy Research.

The
influential left-of-centre think-tank argues that allowing care
leavers to accumulate a nest egg would enable them to cope better
with the difficult transitional stage to adulthood and make them
feel more valued as citizens, as well as offering them additional
financial support.

The
paper says there are dangers that children who have spent time in
care will not benefit as much as other children from the proposed
child trust fund initiative, which is due to be implemented before
the next general election.

Under
the initiative, all newborn babies will be provided with an account
and a “baby bond”. Children and their families will then save into
the account until the child has access to the money at
18.

But
the IPPR says limited parental contact and reduced involvement in
the account means children in care will end up with a smaller asset
when they turn 18.