Universal Basic Income Trial To Begin In UK First
Poppy Bilderbeck
Featured Image Credit: Alamy
Five hundred people are set to undergo a trial of universal basic income in the UK.
On Tuesday, February 15, the Welsh government revealed the pilot will be available to young people leaving care.
From their 18th birthday, vulnerable young people will receive the highest rate of any large-scale pilot, and be paid for a total of 24 months.
We’re committed to supporting young adults leaving the care system.
— Welsh Government 🏳️🌈 (@WelshGovernment) February 16, 2022
All Care leavers in Wales will be eligible for a Basic Income for 24 months from the month after their 18th birthday as part of our Basic Income pilot scheme.
Find out more here 👇https://t.co/ospul10XxO pic.twitter.com/oVbzIR8XWI
The 500 young people will receive a sum of £1,600 a month, amounting to £19,200 a year, for a total of two years, The Independent reports. It is the highest rate of any large-scale trial such as this.
Initially, only 250 recipients were set to be included, however, the group was considered to be too small to prove useful as a study and so the number was doubled. It was also widened to include a more diverse range of people and to reflect the amount of 18-year-olds leaving care in the 2022/23 financial year.
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In January, the committee stated: 'A basic income pilot for care leavers – as currently proposed by the Welsh government – will provide valuable feedback on the potential of such a scheme to improve the support to a group which faces significant challenges.
'However, a three-year pilot of only 250 people will offer limited information. And applying a basic income only to care leavers, will tell us little about universal basic income.'
“I have seen evidence that for some people in receipt of universal credit, there are mental health consequences.
— The Wounded Healer (@ahmedhankir) May 3, 2021
It is a brutalising system.
Everyone should have at least the minimum income necessary for a healthy life..."
Sir Michael Marmot
The study has been given a minimum time period of three years. In order to help cover living costs, participants in the study will be paid an unconditional amount of cash by the government under a universal basic income.
Finland and the Netherlands are among some of the other countries who have trialled similar studies in a bid to give people more opportunities and economic security.
Professor Sir Michael Marmot, who chairs the Welsh Government's Technical Advisory Group on Basic Income, reflected: 'The Technical Advisory Group for the Welsh Basic Income Pilot want 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 Welsh Government with the support it needs in making this a success.'
“Social Justice Minister Jane Hutt said: Care leavers have a right to be properly supported as they develop into independent young adults. Our basic income pilot is an exciting project to deliver financial stability for a generation of young people that need it most” 👏👏 https://t.co/1oUtrNmnxP
— Lewis Roberts (@LewisORoberts) February 16, 2022
It is hoped that the study will prove to the Welsh Labour government whether universal basic income can truly improve health and financial wellbeing in a way that cuts down on unemployment and poverty.
Jane Hutt, the minister for social justice, reflected how much of an 'exciting project' it was 'to deliver financial stability for a generation of young people that need it most'.
She said: '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.'
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