The trial announced by the Welsh government will launch in the summer and will be open to all care leavers who turn 18 over the following 12 months.
It is expected to remain in place for at least three years and will be used to assess whether those who take part do better in the long term, financially, physically and emotionally, than young people who do not.
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The scheme is expected to cost the Welsh government around £20m over three years and support as many as 500 young people.
Researchers who designed the scheme looked at similar initiatives delivered worldwide and worked alongside care leavers in creating the offer.
A technical advisory group, chaired by Professor Michael Marmot, has been set up to bring together experts in basic income and support for care leavers who will inform the development and evaluation of the pilot.
Participants who receive the benefit will be able to work under the pilot but will be taxed.
They will also be unable to claim all benefits they would be entitled to if they were not involved in the scheme due to a refusal to allow this by the UK government.
Organisations supporting care leavers have praised the announcement of the pilot.
Well done Wales for this trial of an unconditional income for young people leaving care. It would be better to trial it across a wider spectrum of recipients but this is a great way to start. #UBI
— Catherine Rowett 💚 Ex-MEP (@catherinerowett) February 16, 2022
Wales pilot offers £1,600 a month to care leavershttps://t.co/XcFpcxkYPy
Children’s rights charity Article 39 wrote on Twitter: “This is what care, respect and dignity looks like.”
Katherine Sacks-Jones, chief executive of Become, added: “The more I think about this, the more brilliant it is. Young people face a care cliff and are expected to be emotionally, practically and financially independent overnight at just 18.
“Of course money alone isn’t the panacea. But it’s a damn good start. Young people are already struggling with so much when they leave care – isolation, mental health, stigma – the least we could do is give them a financial cushion.
“Just think what taking away that financial stress could do – give young people space to find their feet, think about the future, make mistakes (like all 18-year-olds). So well done Wales for this radical approach.”
Heartwarming news. We mustn’t forget millions live with parents into their late 20s/30s due to the cost of living - yet CEP who don’t have this option are expected to succeed with no safety net. The price tag is small for the huge difference it will make https://t.co/MJJTBXS3wg
— Rebekah Pierre (@RebekahPierre92) February 16, 2022
Heartwarming news. We mustn’t forget millions live with parents into their late 20s/30s due to the cost of living - yet CEP who don’t have this option are expected to succeed with no safety net. The price tag is small for the huge difference it will make https://t.co/MJJTBXS3wg
— Rebekah Pierre (@RebekahPierre92) February 16, 2022
Sacks-Jones and Andy Elvin, chief executive of Tact care, are among those calling on chair of England’s Care Review Josh MacAlister and children’s minister Will Quince to “take note” of the scheme.
In a tweet, MacAlister described the pilot as a “fascinating experiment”.
“Will be very interesting to see the impact on longer term outcomes for the 500 care experienced people who will be taking part,” he added.
Others questioned whether the scheme would go further to provide emotional and practical support for care leavers.
Jane Hutt, Welsh minister for social justice, said: “The pilot is specifically being designed to enable participants to receive more than just a basic transfer of cash; support will also be offered that is designed to build up their confidence to negotiate the world outside of care.
“This extra support will include, for instance, financial wellbeing training and signposting to all available support provided by the Welsh government and other partner organisations.”
