Some people in Wales will be given almost £20,000 a year for two years as part of a trial of a basic income in Wales.
The move follows First Minister Mark Drakeford's pledge after the Senedd elections last year to launch a pilot scheme.
The Welsh Government has now outlined how that pilot will work. It will be targeted at young people leaving care and ministers say it “will enhance the support available to young people as they leave care and assess the impact that has on them”.
Read more: You can find out what Universal Basic Income is here
What does the pilot involve?
The pilot will run for a minimum of three years with each member of the cohort receiving a basic income payment of £1,600 per month for a duration of 24 months from the month after their 18th birthday.
Who is eligible?
All young people leaving care who turn 18 during a 12-month period, across all local authority areas, will be offered the opportunity to take part in the pilot. The pilot will begin during the next financial year and the Welsh Government anticipates over 500 young people will be eligible to join.
How much will it cost?
Ministers have allocated £24.5m to the delivery of this pilot over the course of four years.
Is this a universal basic income (UBI) trial?
Though the trial does involve the state giving people cash without strings attached, there is considerable scepticism about whether this actually constitutes trialling UBI.
The idea of UBI is that it covers everyone, regardless of age, income or background. Limiting it to one group limits how reflective the trial is of UBI. A think tank recently outlined how a UBI trial could work in Wales. In a recent report, entitled A UBI Pilot for Wales, the Petitions Committee in the Senedd concluded that the current scheme for care leavers "has merit", but a wider trial would allow policy makers to learn more about the impact of a UBI.
Outlining the reasoning behind the pilot, Minister for Social Justice, Jane Hutt, said: “Our basic income announcement today complements the Welsh Government’s ambition to ensure the most vulnerable in our society are supported. We know we’re in the midst of a cost of living crisis and we’re determined to continually look at how best to support individuals in Wales who live in poverty.
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“Care leavers have a right to be properly supported as they develop into independent young adults. It’s also important to note that this policy is underpinned by the United Nations Convention on the Rights of the Child (UNCRC), emphasising our commitment to strengthening the rights of children and young people in Wales.
“Yet, too many young people leaving care continue to face significant barriers to achieving a successful transition into adulthood. Our Basic Income pilot is an exciting project to deliver financial stability for a generation of young people that need it most.
“The pilot will build on the existing support offered to looked after children in Wales and ensure young people who take part in this pilot get all the support they need to give them the best possible chance to make their way in life and the transition out of care better, easier and more positive.
“We are fully committed to supporting those living in poverty, ensuring they receive adequate financial support so that everyone in Wales can live happy and healthy lives.”
The Welsh Government’s technical advisory group on basic income, chaired by Professor Sir Michael Marmot, said that there were “differing opinions on how it could work on a wider scale” but that it supported the scheme.
A spokesman for the group said: “The Technical Advisory Group for the Welsh Basic Income Pilot wants to put on record our support for this policy. Whilst we may have differing opinions on how a basic income can work on a wider scale, we can all agree that any scheme aimed at helping a particularly vulnerable group should be welcomed and intend to provide the Welsh Government with the support it needs in making this a success.”
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