Funding will be made available to eligible young people aged between 16 and 25 and either still in local authority care or care leavers to help them progress towards independence.
In 2015/16 there were 5662 looked after children in Wales and 702 care leavers.
Carl Sargeant said:
“Typically, outcomes for children in care or care leavers are less positive than for those young people who live at home with a parent or parents. We are committed to improving the life chances of children who have experienced care, so they have the opportunity to flourish and realise their potential.
“Local authorities, as corporate parents are expected to help the young people in their care move towards independence in a similar way to parents who have children living at home. Providing appropriate support and guidance to a young person early in their journey towards independence helps to maximise life chances.
“I hope this fund will offer timely support to care leavers and go some way in helping them achieve their ambitions and make a successful transition to adulthood and independent living. We will work with the Children’s Commissioner and young people who have experienced care to discuss how the fund will work. I welcome Sally Holland’s Spotlight report on looked after children which will also help inform our decision.”