Santa Clara

Every 18-year-old leaving care Will be offered £1,600 a month under the Welsh Government 's basic Income pilot.

It is expected about 500 people Will be eligible to join the scheme, which is being launched this year and could cost up to £20m over three years.

Officials said it was the highest amount offered on a basic Income scheme anywhere in The World .

The Welsh Conservatives said it was a waste of money while Plaid Cymru called for The Pilot to be expanded.

The Conservatives also said Labour ministers were " not even close to living in reality" with this idea.

The £1,600 a month Will be taxed and is expected to be counted as Income by the UK government, meaning it would affect someone's eligibility for benefits.

It Will be unconditional and Will not be withdrawn if participants get a job.

The Welsh Government is no longer calling the plans a pilot of Universal Basic Income (UBI), recognising it is not the same as the UBI concept promoted by advocates around The World .

But ministers want to test out how a basic Income could help care leavers be better placed for their transition into independence as adults.

Some High Profile celebrities, including, have backed the idea of UBI.

The three-year pilot Will be offered to every person leaving care in Wales at the Age Of 18, over a 12-month period.

They Will receive payments for 24 months, amounting to an Income worth £19,000 before tax annually, with The First payment a month after their 18th birthday.

It is broadly equivalent to the, according to officials.

The Welsh Government has budgeted £5m in The First year of The Pilot , £10m in The Second and £5m in the third, although how much they spend Will depend on how many sign up.

It is not clear how the recipients Will be taxed, but the Welsh Government said it would be subject to the, rather than the Young People having to file a tax return themselves.

The Department for Work and Pensions has confirmed the payment Will affect people claiming Universal Credit as it is a " means tested benefit" and this counts as Income .

Welsh officials are also promising extra support for those taking part, such as financial well-being training.

There is no date for when the scheme Will be launched, although officials said it would probably be in the summer.

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. "

She added That " too many Young People leaving care continue to face significant barriers to achieving a successful transition into adulthood".

The Welsh Government is developing how it Will evaluate the scheme, although it wants to look how well those who take part do with jobs and accessing education.

It Will work with a technical advisory group led by Prof Sir Michael Marmot .

Welsh Conservative spokesman for social partnership, Joel James , said: " Countless trials from across the globe have found basic Income does not have the expected outcomes as it fails to incentivise work and proves time after time to be a waste of public money.

" Our NHS is at Breaking Point and our economy is in a Fragile State , but instead of tackling those issues head on, Labour are more interested in basic Income - That Will cost the country an absolute fortune. "

Plaid Cymru 's economy spokesman, Luke Fletcher , said: " This pilot is a step in The Right direction for the Welsh Government , but it's really important That it has the structure around it to enable it to meet the ambition of addressing poverty and unemployment, as well as improving health and financial wellbeing.

" Poverty is as multidimensional as it is widespread, and there's no reason That this pilot cannot be expanded to a wider population from the start. "

UBI is where a government pays all individuals a set salary, regardless of their means.

Once it was announced That this pilot would Focus On care leavers, critics argued it was not universal.

UBI advocates say it could help reduce poverty and be easier and less stressful to navigate than more complex means-tested benefits, but opponents say it is extremely costly and not targeted at those who need it.

A basic Income for care leavers has been tried in Santa Clara , California, where 72 young adults received $1,000 (£739).

In Finland, research on a basic Income pilot with jobless people for two years found it did not lead them to find work,

The Welsh Government plans were welcomed by the Joseph Rowntree Foundation, a charity which researches poverty in the UK.

" This targeted support for Young People with experience in the care system is really welcome, particularly at such an important transition point in their lives, " associate director Chris Birt said.

To match The Level of basic Income for care leavers at about the Real Living Wage is bold.

Eighteen year olds working in jobs paying The National minimum Wage - what it is still called for Teenagers - Will make £6. 83 an hour from April 2022.

The Real Living Wage for That age group is £9. 90 an hour.

With so many people in Wales paid only The National minimum Wage there may well be those who think the offer to care leavers is over generous.

But in economic terms if The Project is successful and results in better paid work and healthier lives, the long term benefits would flow back into the economy.

While this is not is a pilot of UBI, its outcomes Will be relevant to The Debate around That .

Source of news: bbc.com