Up to 500 young adults in Wales who have just turned 18 and have been raised in care are eligible for the new Universal Basic Income (UBI) scheme, which will earn them £1,600 before tax a month
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Hundreds of young people in Wales will be given £1,600 a month before tax for two years under a new process starting this Friday.
Up to 500 people who just turned 18 and grew up in care are eligible for the new Universal Basic Income (UBI) scheme.
As part of the process, each person will be paid £1,600 per calendar month (£1,280 after tax) with no restrictions on where the money can be spent.
This equates to around £19,200 a year before tax.
Participants can choose to receive this payment either monthly or twice a month.
They are paid by an external provider to individuals and not to households.
The Welsh Government believes the cash on offer is the highest amount committed to a basic income pilot project anywhere in the world.
However, it does admit that some people will be better off with existing benefits like Universal Credit.
For example, an unemployed 18-year-old paying £650 rent to a social housing provider would be around £400 better off than if he had Universal Credit, it says Wales Online.
When you apply for benefits you must make the DWP aware that you are participating in the scheme as your benefits will need to be adjusted accordingly.
An exception to this is Personal Independence Payments (PIP) and people in assisted living are still eligible to claim housing benefit.
Similar systems have been tested in countries such as Iran, India, Canada and parts of the United States.
The UBI scheme in Wales will run for three years and cost around £20m.
First Minister Mark Drakeford said: “We want all our young people to have the best possible opportunities in life and to reach their full potential.
“The state is the custodian of people leaving care and therefore has a real obligation to support them as they enter adulthood. Our focus will be to open their world to all its possibilities and create a service independence as their life evolves.
“Many of those involved in this pilot don’t have the support that many people—including myself—had when we began our journey to adulthood.
“Our radical initiative will not only improve the lives of those taking part in the pilot, but will also bear fruit for the rest of Welsh society.
“If we succeed in what we are trying to do today, it is only the first step on a journey that could benefit generations to come.”
Who can get the money?
A person who turns 18 years of age between July 1, 2022 and June 30, 2023 and leaves care
Someone who has been cared for by a church for a period of 13 weeks or a total of 13 weeks beginning after the age of 14 and ending after the age of 16
A discharged person who is resident in Wales or placed outside of Wales but is supported by the Social Services Department of a Welsh local authority.
Participation in the pilot project is voluntary. Those entitled will be contacted by social services or their youth counselor
You can also speak to your local council, who can help you with an application form.
https://www.mirror.co.uk/money/hundreds-young-people-given-1600-27344047 Hundreds of young people will receive £1,600 a month through a new process from Friday