All care leavers in Wales to receive £1600 per month for two years in basic income pilot scheme

The Welsh Government has outlined plans to extend support for care leavers through a Basic Income pilot in Wales.

Recipients will receive £1,600 per month, pre-tax. HMRC and DWP have confirmed that the payment will interact with the tax and benefits system and will be recognised as income for these purposes.

They say will provide a test for the stated benefits of basic income, such as addressing poverty and unemployment and improving health and financial wellbeing.

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 this pilot. The pilot will begin during the next financial year and we anticipate over 500 young people will be eligible to join the scheme.

The pilot will run for a minimum of three years with each member of the cohort receiving a basic income payment of £1600 per month for a duration of 24 months from the month after their 18th birthday.

The Welsh Government involved care leavers directly in the development of the pilot as well as working with professionals in Local Authorities and have also established a Technical Advisory Group, chaired by Professor Sir Michael Marmot, bringing together experts in basic income and support for care leavers to inform the development and evaluation of the pilot.

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.

“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.

She also said the enhanced support offered by the scheme will include, “financial well-being training and signposting to all available support provided by Welsh Government and other partner organisations.”