Finances

We can help you to manage your budget and save for things you want in the future.

16-18 years

You may be entitled to an allowance to help you with living and travel costs (this can start in September after GCSEs). The allowance is agreed individually with your social worker and depends on any income or savings you have and whether any of your living costs are being met such as food or gas and electric. The maximum weekly allowance you can receive is up to the current level of weekly benefits if you are fully responsible for all living costs, including food and utilities in your accommodation.  If you live in a  foster home you will be given pocket money for personal use and your other needs will be met by your home. You can also apply for an education bursary if you are at college. If you aren’t attending or actively looking for training or employment, your needs will be less and your allowance may be reduced. If you are using your allowance for anything that could cause you harm, then you will not be provided with cash and will need to spend your allowance with an adult.

We understand that at times you might need additional help such as financial support for travelling to interviews, family time, purchasing clothing for work or training and equipment. You should discuss this with your social worker to see how we can help you.

Over 18 years

Once you are 18, we hope that you will have an income from work or be studying and receiving student finance. We can help you in looking for work, managing your money and applying for student finances depending on what you are doing.  Any allowance or pocket money you receive from the service will end at 18.  If necessary, your social worker and personal advisor can help you to apply for Universal Credit and can arrange some financial support until your money is available. This will be time limited and dependent on you showing us you are actively setting up your universal credit claim and looking for employment or training options. 

When you do start work we will make sure you have enough money to pay your bills and travel costs (see section on Travel Passes) until you get your first salary.   We will also help you if your job ends as you might need some support while waiting for your next job or your universal credit claim to start.  Speak to your personal advisor (PA) about this and you can make a plan together.

We now have a clear policy setting out what financial support young people above the age of 16 up to 25 and under the care of the local authority or care leavers are entitled to. This supports you to understand what you are entitled to as well as professionals who are supporting you. Speak to your social worker or PA if you have any questions.

Support with Council Tax is available to all of our young people who are Former Relevant. This has now been extended across the 12 local authorities in the North East!

Scroll down for more information!

Budgeting and saving

Lots of young people struggle to budget. We can help you to plan and manage your budget and to think about saving for things you want in the future. To get you started the government provide you with an ISA (Individual Savings Account) which they pay money into; at 18 this becomes your property, you can withdraw the money but it’s a good way to start saving. You may also have a Child Trust Fund set up by the government depending on when you were born, you can check the details of this through the internet and your PA can give you information if you think you might have one.

We do not want you to get into debt as it can be very difficult to get out of.  It also affects what you can do.  We advise you not to take out any pay day loans, universal credit loans  or any advance payments.  If you are worried about money, speak to your PA and together you can come up with a plan.  We may be able to help you out in the short term.

You said: ‘Travelling around is expensive and difficult.’ 

We did: We have worked with Nexus on a pilot scheme to provide local travel passes for our young people, aged 18 - 26. This is in place until March 2026 - we have asked Nexus to extend it!

Debt Relief Orders

We are available to help with any financial concerns you may have, offering advice and signposting to suitable support. Some young people have applied for a DRO (Debt Relief Order) to clear debts; you need to think very carefully about this and take proper advice as it impacts on your access to finance and accommodation for at least 12 months. We can support you to look at this and to speak to Citizen’s Advice.

One of the biggest problems young people face is debt for their rent. It is tempting not to pay the rent but then you may end up with debt and then cannot move home due to having arrears. We can support you to set up your rent payments directly from your universal credit or by direct debit. If you make regular payments, we can match the payments you make to help you reduce your arrears more quickly, but only the first time you have arrears and when you show commitment to paying them off.

Maternity grant

If you are pregnant under the age of 18 and can’t access benefits, your social worker will arrange to spend your maternity grant with you at 29 weeks. This is £500 to buy things that you will need for your baby.  Over 18 this grant is available through the benefits system.

Your accommodation and moving home

We have updated our offer for your setting up costs!

Anyone who moves to their first home will now receive £3000 worth of goods to match the rising cost of living.

  • If you are a Former Relevant young person you do not have to pay Council Tax if you are under the age of 25. The 12 local authorities in the North East have all agreed to exempt young people from Council Tax up until age 25 if they live in one of those authorities. Your PA will support you in making sure you are exempt.  When you move home you must tell your PA so that an update can be given to the council so that your exemption moves with you.  If you move out of North Tyneside, we will make sure that you do not have to pay Council Tax where you live. In this case you must apply for the council tax reduction in the local area then:

    • Apply for exemption in one of the 12 North East authorities.

    • Provide us with your remaining bill so that we can pay it for you if you are outside of the 12 North East authorities.

    Ask your PA if you need any help with your Council Tax.

    When you are 25 your bill will be recalculated, and you will start paying your own Council Tax from that point. Your PA can advise you on how to apply for Council Tax reduction even after 25.

    And another change! If you live with a partner or friend and you are named on the council tax bill, you will be given full exemption in the 12 North East authorities. Before the new arrangement this was only 50%.

    You must be named on the Council Tax bill to be exempt.

  • Heating your home can be a big expense and it is important to learn to budget and to think of ways that save electricity and gas. Your PA can help you to look at this and also support you to contact Welfare Assistance if you are struggling. Setting up a direct debit, managing your use of gas and electric and thinking about having meters installed are all ways you can look at managing your money.

  • If you were a child in care in North Tyneside for 13 weeks following your 14th birthday, including some time after your 16th birthday (Former Relevant), we may provide you a setting up your home amount of up to £3000*. This allowance is not paid as a cash lump sum and will be paid towards items to help you set up your home. This allowance will only be provided when you have a named tenancy and will be spent on essential items for your home such as white goods and flooring. You can claim this allowance up to the age of 25. You must agree any purchases with your social worker or PA before they are bought. If you buy any goods yourself, you will get the money back as long as you agree these before buying them and provide receipts. Once you have spent your allowance, your goods are your responsibility and will not be replaced.

    Update: we have produced a guide for you to consider getting everything you need and expected costs of these items – your PA can give you this.

    (*this amount is available for young people moving home after April 2023 and has been increased to account for the rise in the cost of living. Prior to April 2023 any young person who has moved has or had an entitlement of £2000).

  • We will pay for your first TV licence when you are over the age of 18.  If you need a TV licence before you are 18, for example if you live in supported accommodation, then children’s services will provide this for you. Remember to think about this if you go to university as you might need a TV licence where you live.

  • We will pay towards your first years home content insurance when you move into your first own home.  Your social worker or PA can help you to look for a deal that suits you.

  • We will give you up to £100 towards removal and transport costs when you move into your first own home.  We may also be able to help you with removals costs if you move again but this must be reasonable, planned and agreed in advance.

  • We will pay £100 towards cooker and washer connection costs when you move into your first own home.

  • We may help arrange a storage provision for a short period of time in an emergency.

  • We will make sure you have at least two items of suitable personal luggage up to a cost of £45.

  • You have told us that travel is expensive and this stops you from getting out and about. We have worked with Nexus and have been able to secure travel passes for our young people over the age of 18. This is a Pilot Project and we will update you on any changes in the future.

    If you live locally, you may be eligible for a Network One all zones travel pass which allows free, unlimited travel on-

    • Arriva, Go North East and Stagecoach bus services in Tyne and Wear.

    • Tyne and Wear Metro

    • Northern rail services between Newcastle and Sunderland and Newcastle and Blaydon

    • Shields Ferry

    The Network One all zones travel pass is stored on a Pop smartcard and will be provided to you by your Personal Advisor.

    The POP card will be valid until you turn 26 or the 31st March 2026, whichever is earlier. We are now talking to Nexus about expanding the scheme after March 2026 as you have told us it is really helpful!

  • We all often need little extras. If you have an income, you will be helped to think about saving for these. If you do not have an income and are under the age of 18, your social worker will support you to access money for travelling to interviews, family time, clothing for work or training and equipment needed. This will be on an individual basis and will not usually be paid in cash. Your social worker will make sure you have a bank account, your national insurance number, a copy of your birth certificate and a passport; you will also be able to apply for your provisional driving licence if you want to.

    We do understand that at times important documents get lost.  We will support you to replace one form of ID if needed.

    Post 18 you can access fares and clothing for interviews from the job centre. Although additional finances are not usually provided, you can access up to £150 per year for  additional family-related travel, training or employment-related travel, clothing and equipment. The Leaving Care Team may also pay for one short course for you to the value of £100.

    Up to the age of 21 HIVE may be able to fund up to 10 driving lessons or can help to apply for additional funding for driving lessons.

    We will also celebrate your birthday each year with an activity of your choice!

    Financial support needs are considered on an individual basis depending on your circumstances.

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Accommodation