Young adults leaving care in Wales will be offered £ 1,600 a month for two years as part of the universal basic income test.
More than 500 people will be offered payments starting on 1 July, which the Welsh Government has said it hopes will help them “on the road to life, a healthy, happy and fulfilling life”.
A caregiver is a person who has spent some time in foster or residential care, away from his family, but is ready to leave because he is 18 years old.
The trial, called a pilot basic income scheme, will cost £ 20m, last three years and will be carefully evaluated to examine its effect on those involved, Wales ministers said.
The Labor-led government has said it will provide independence and security for those who faced enormous challenges during their childhood, giving them more control over their lives and enabling them to make decisions about their future.
Tif Evans of Voices of Care Cymru, speaking on behalf of young people who have experienced care, welcomes the scheme. She said: “This is a brilliant opportunity for caregivers in Wales.
“It’s good to see that caregivers in Wales are being considered, and the Welsh Government is giving them this opportunity as young people to become responsible, to control certain parts of their lives and to have a chance to thrive and be financially independent.”
She added: “We thank the Welsh Government for investing in them and their future, and we look forward to other changes and developments for young people with experience in care in Wales to achieve life’s aspirations.
Leaving caregivers will also receive individual advice and support to help them manage their finances and develop their financial and budgetary skills.
Local authorities will play a key role in supporting them during the pilot project.
Voices from Care Cymru will also work with young people to give them advice on well-being, education, employment and to help them plan for their future after the pilot project.
Jane Hutt, Minister of Social Justice, said: “We will carefully assess the lessons learned from the pilot project. Hearing everyone involved will be crucial in determining the success of this globally ambitious project.
“We will examine whether basic income is an effective way to support the most vulnerable in society and not only for the benefit of the individual, but also for society as a whole.
Joel James, the shadow minister of social justice in the Conservative Party, said the scheme could “create more problems than it solves”.
“It has been proven time and time again that the so-called universal basic income does not work,” he said.
“We recognize that this is a vulnerable group and they need additional support, but this is a completely wrong way to do it. This is a typical Labor MP, but it is obvious that giving free money will not be a quick solution. “
Mark Drakeford, the First Minister of Wales, said: “Many of the participants in this pilot project do not have the support of many people – myself included – we were lucky enough to enjoy as we set out on our journey to adulthood.
“Our radical initiative will not only improve the lives of those involved in the pilot project, but will draw rewards for the rest of Welsh society.
“If we succeed in what we are trying to do today, it will only be the first step in what can be a journey that benefits future generations.
The pilot basic income scheme will be limited to caregivers who celebrate their 18th birthday between 1 July 2022 and 30 June 2023.
Participants in the pilot project can choose whether to receive their payment monthly or twice a month, paid to them by an external supplier and taxed at the basic rate of withholding tax.
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