Children growing up in care in Guernsey will receive £10 a week in savings under a new government-backed scheme designed to help them become financially independent when they reach adulthood.
The initiative, established by the States of Guernsey’s Children and Family Community Services in partnership with Guernsey Community Savings, aims to give young people a stronger financial foundation as they prepare to leave the care system.
The government said the scheme would apply from the time a child enters care, with about 40 young people eligible to benefit immediately.
Lucy Cook, associate director of children’s services, said the accounts would help young people access opportunities that might otherwise be beyond their reach.
Helping young people prepare for independence
The States of Guernsey said moving from care to independent living can create significant financial challenges, including the costs of setting up a home and covering everyday expenses.
Having personal savings, it said, could provide young people with greater choice, security and confidence as they begin adult life.
The scheme is intended to recognise the additional support care-experienced young people may need when transitioning to independence.
“This initiative is about giving our care-experienced young people a stronger foundation and recognising our commitment to them as corporate parents,” Cook said.
“We want every child in care to know that they are valued, supported and encouraged to achieve their full potential.”
How the savings scheme will work
The States will pay a one-off fee to payment services company Allpay to establish the scheme.
Guernsey Community Savings, a local charity, will then open and manage the individual accounts. It will also work with each young person and their social worker as they approach their 18th birthday.
Once they turn 18, beneficiaries can choose to keep their savings account with Guernsey Community Savings or transfer the money to an account with another provider.
Joe Brown, chief executive of Guernsey Community Savings, said young people leaving care were particularly vulnerable to financial exclusion when they reached adulthood.
Giving them the opportunity to build savings, he added, could provide valuable financial security as they take their first steps towards independent living.
The initiative is intended to help young people leaving care meet the costs of establishing themselves as adults and approach the transition with greater financial stability.
