New savings scheme to give children in care a financial head start
- Children in care in Guernsey will receive £10 per week saved until they turn 18 under a new scheme
- The scheme is a partnership between States' Children and Family Community Services and Guernsey Community Savings
- Around 40 children are expected to benefit when the scheme launches
- At 18, young people can choose to open a GCS account or transfer their savings elsewhere
- The scheme will be administered by GCS at no ongoing cost to the States after a one-off setup fee
Children in care in Guernsey are set to benefit from a new savings scheme designed to give them a financial head start as they prepare for adult life and independent living.
The scheme, established by the States' Children and Family Community Services in partnership with Guernsey Community Savings (GCS), will set aside £10 a week for each eligible child until they reach the age of 18. The money will provide a financial foundation to help young people meet the costs and challenges of starting out as an adult.
For young people leaving care, the transition to independent living can bring significant financial pressures, from setting up a home to managing everyday living costs. Having savings of their own can offer greater choice, security and confidence as they take this important step.
The States of Guernsey will pay a one-off fee to allpay, a payment services company, to establish the scheme, which will then be administered by GCS at no ongoing cost to the States. GCS will open and manage the accounts, handle enquiries and work closely with each young person and their social worker as they approach their 18th birthday.
At 18 years old, participants will have the choice of opening an account with GCS or transferring their savings to an account of their choice, giving them control over their money as they move into adulthood.
Lucy Cook, Associate Director of Children & Family Community Services, said: "Every child in our care deserves the opportunity to look ahead with confidence and hope for their future. This scheme is a practical way of supporting young people as they move into adulthood, helping them to access opportunities that might otherwise be out of reach."
"Whether the funds are used towards further education, training, housing, employment or another important life goal, this initiative is about giving our care experienced young people a stronger foundation and recognising our commitment to them as corporate parents. We want every child in care to know that they are valued, supported and encouraged to achieve their full potential."
Chief Executive of Guernsey Community Savings Joe Brown said: "Children who have been in care can be particularly vulnerable to financial exclusion when they reach adulthood. Giving them the opportunity to build up savings, and the financial security that comes with this, can make a real difference as they take their first steps towards independence."
"We were keen to support this initiative, and our move earlier this year to a new prepaid card provider, allpay, has made it possible. As well as providing our existing clients with a better, more flexible service, the new platform gives us the opportunity to develop tailored financial schemes in partnership with local organisations."
Around 40 children are expected to benefit when the scheme launches.
Funds held through the scheme will not earn interest.
Q&A
Q: How much will each child receive through the scheme?
A: Each eligible child will have £10 set aside per week until they reach the age of 18, providing them with accumulated savings to help with the transition to adult life.
Q: Who is administering the scheme?
A: The scheme will be administered by Guernsey Community Savings at no ongoing cost to the States, following a one-off setup fee paid to allpay. GCS will manage the accounts and work with young people and their social workers.
Q: What happens to the money when participants turn 18?
A: At 18, young people can choose to open an account with Guernsey Community Savings or transfer their savings to an account of their choice, giving them control over their money as they move into adulthood.
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