EDUCATION secretary John Swinney is to call a meeting to address problems with a flagship bursary putting kids in care at risk of homelessness.

As reported by the Herald on Sunday, the Care-Experienced Bursary (CEB) for children who have lived in care was supposed to help more young people go to college or university.

However cash-strapped councils all over Scotland have been reducing funds for some care-experienced young people who receive the bursary to save money from their own budgets.

It includes cash for items such as toiletries, clothing, travel and accommodation.

In some cases foster carers had been given less cash by councils and told to claim back the difference from their children's education money.

Experts warned that the way the policy was being handled was putting already-vulnerable young people at risk of homelessness.

Now the education chief has issued guidance to all councils and is to call a meeting meeting with national council body COSLA and the Centre for Excellence for Children’s Care and Protection (CELCIS) to discuss the problems.

In a letter to all council bosses sent this month, Mr Swinney admitted that those who have had their funding reduced already may have experienced "significant anxiety" and emphasised that the education bursary was not to be used as a reason to reduce funds in other areas.

He wrote: "When the CEB was introduced, it was not intended that it would act as a replacement for any other financial support received by this group. I am sure you will agree with me that this particular group of students face a number of challenges and I am keen that local authorities take this into account when determining appropriate levels of discretionary support.

"Given the financial constraints faced by Local Authorities in recent years, some care-experienced students in receipt of the Care-Experienced Bursary may have been subject to reduced financial support and for the students concerned, this will generate both practical issues and significant anxiety.The result of any reduction in discretionary financial support received by care-experienced students from local authorities could mean they do not have an adequate package of support to meet their particular needs and could be more likely to leave education.

"The [bursary] is based on...calculations of the Living Wage, and it is important to note that the policy intention of the CEB is not only to provide enhanced living cost support, adding value to the existing support provided by local authorities, but also to act as an incentive to enter Further Education and Higher Education for people with experience of care."

He also issued guidelines stating clearly that the bursary was not supposed to be used to replace any other funding.

The document states: "Where existing entitlement to financial support exists the Care-Experienced Bursary is awarded in addition to those statutory entitlements. It is not merely to offset living costs for all care-experienced students, but crucially to act as an incentive to enter FE and HE, and to sustain this, without experiencing poverty and social exclusion. In the specific case of care leavers, it is not intended to replace other statutory entitlement to funding support provided."

The bursary was championed as a flagship policy by First Minister Nicola Sturgeon when it was increased to £8,100 for all care-experienced students entering college and university education in 2018.

It is intended to close the attainment gap for care-experienced young people, who have less financial and practical support than others to help them cope during university or college.