The Spring Statement failed to address the deep concerns surrounding the welfare cuts announced last week. While we welcome the government’s £1 billion investment in employment support, these reforms risk undermining vital initiatives such as the National Youth Guarantee. 

Young people leaving care are among the most vulnerable to these changes. They are three times more likely to be not in education, employment, or training (NEET) than their peers, with 39% of care leavers aged 19-21 classified as NEET, compared to 13% of the general population. They are also significantly more likely to experience poor mental health, yet the announced changes to incapacity benefits will disproportionately penalise them. Under these reforms, 18- to 21-year-old care leavers with mental health conditions that prevent them from working will no longer be able to access incapacity benefits until they turn 22. This will often exacerbate care-experienced young people’s already precarious situations – think insecure housing, limited financial independence, and the negative impact on their mental health.

At Drive Forward Foundation, we urge the government to mitigate these welfare cuts by prioritising further investment in tailored employment support. The economic case is clear: reducing the NEET rate among young people to match the best-performing OECD countries could add £69 billion to the UK economy over the long term. Closing the gap between care-experienced young people and their peers would be a crucial step towards this goal, reducing long-term welfare dependency, strengthening the workforce, and ensuring that every young person has a fair chance to succeed.

Russell Winnard, CEO of Drive Forward Foundation, says:

“We cannot expect care-experienced young people to overcome systemic barriers while simultaneously stripping away the vital support they rely on. These reforms risk pushing some of the most vulnerable young people further into poverty and instability. If the government is serious about getting people into work, it must focus on reducing the barriers that exist and ensuring there are sufficient accessible opportunities. Investing in young people isn’t just the right thing to do; it’s an economic necessity. We urge policymakers to work with us to create solutions that empower, rather than punish, care leavers.”

Investing in care-experienced young people is both a moral and economic imperative. Equalising the NEET rate between care leavers and their peers would not only help meet the UK’s economic targets but also reduce long-term benefit dependency – lowering the need for future welfare cuts.

We call on the government to focus on evidence-based policies that empower young people to build independent and fulfilling lives. We are committed to working in partnership to ensure care-experienced young people successfully transition from Care to Career, providing them with the opportunities, stability, and support they need to thrive and contribute fully to society.