A new scheme launched today by the Welsh Government will see hundreds of people offered a basic income each month.

The Basic Income pilot scheme, which will kick in this Friday, July 1, will offer £1,600 each month (before tax) to more than 500 people leaving care in Wales.

The support will be available to participants for two years to support them as they make the transition to adult life.

Launched by First Minister Mark Drakeford, it is hoped the pilot will set care leavers on a path to live “healthy, happy and fulfilling lives”.

The Welsh Government said that the radical approach “has trust, autonomy and respect” at its centre. It will provide independence and security to people who have faced immense challenges during their childhood, giving them greater control and empowering them to make decisions about their future.

The £20 million pilot, which will run for three years, will be evaluated to carefully examine its effect on the lives of those involved

Social Justice Minister Jane Hutt said the scheme is a direct investment in the lives and futures of some of Wales’ most vulnerable young people.

Those taking part in the pilot will also receive individual advice and support to help them manage their finances and develop their financial and budgeting skills.

First Minister Mark Drakeford said: “We want all our young people to have the best possible chance in life and fulfil their full potential. The state is the guardian of people leaving care and so has a real obligation to support them as they start their adult life.

“Our focus will be on opening up their world to all its possibilities and create an independence from services as their lives develop.

“Many of those involved in this pilot don’t have the support lots of people – myself included - have been lucky enough to enjoy as we started out on our path to adulthood.

“Our radical initiative will not only improve the lives of those taking part in the pilot, but will reap rewards for the rest of Welsh society. If we succeed in what we are attempting today this will be just the first step in what could be a journey that benefits generations to come.”

To launch the scheme, First Minister Mark Drakeford, Social Justice Minister Jane Hutt and Deputy Minister for Social Services Julie Morgan met with people taking part in the pilot, and young people who themselves have been in care, to talk about the impact this support will have on peoples’ lives.

They discussed how they hope the financial stability will give people the opportunity to make positive life choices as they leave care and provide a more solid foundation from which to build their adult lives.

Minister for Social Justice Jane Hutt said: “We’re in the midst of a cost-of-living crisis like no other and we therefore need new ways of supporting people who are most in need.

“Our Basic Income pilot is an incredibly exciting project giving financial stability to a generation of young people. Too many people leaving care face huge barriers to achieving their hopes and ambitions; such as problems with getting a safe and stable home, to securing a job and building a fulfilling career. This scheme will help people live a life free of such barriers and limitations.

“We will carefully evaluate the lessons learnt from the pilot. Listening to everyone who takes part will be crucial in determining the success of this globally ambitious project. We will examine whether Basic Income is an efficient way to support society’s most vulnerable and not only benefit the individual, but wider society too.”

Local authorities will play a key role in supporting them throughout the pilot. Voices from Care Cymru will also work with the young people to give them advice on wellbeing, education, employment and help them plan their future after the pilot.

Tiff Evans of Voices from Care Cymru, speaking on behalf of young people who have experienced care, said: “This is a brilliant opportunity for care leavers in Wales. It is good to see that care leavers in Wales are being thought of and Welsh Government are providing this opportunity for them as young people to become responsible, control some parts of their lives and have a chance to thrive and be financially independent.

“We thank Welsh Government for investing in them and their future and we look forward to other changes and developments for care experienced young people in Wales in order for them to reach life aspirations.”