Everyone involved in the scheme, taking place in Wales, will receive £19,200 a year, or £1,600 a month, for 24 months from their 18th birthday. The trial will cost the Welsh government approximately £20million but could be rolled out to other parts of the UK if it’s successful.
She continued: “Our basic income pilot is an exciting project to deliver financial stability for a generation of young people that need it most.”
However, not everyone thinks it’s the right time for the Welsh Government to be focussing on something like this.
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.
He continued: “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.”
It’s not the first time that a Universal Basic Income has been suggested for parts of the UK – the idea was flouted last year by think tank Autonomy.
It suggested then that a Universal Basic Income for Wales would help reduce poverty in the region.
Will Stronge, director of research at Autonomy, said: “All the evidence suggests that a guaranteed basic income would directly alleviate poverty in Wales and this plan sets out a sensible approach for the Welsh Government to follow in planning and devising a pilot.”
Universal Basic Income schemes have been piloted all over the world.
Guy Standing, founder of the Basic Income Earth Network, said: “Having been involved in pilots in North America, England, Finland, India and parts of Africa, I am enormously impressed by the energy behind making Wales a pioneer of what should become national policy after the COVID-19 pandemic.
“We need resilience, and only basic income security can provide that.”
Anyone living in England and Scotland will still have to apply for Universal Credit, more information can be found at gov.uk.
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