Universal Basic Income (UBI) has never truly took off in any part of the world. It essentially gives people a set amount of money every month before their wages, and helps people pay for essentials like housing and food. The Welsh government have rolled out a large scale scheme involving care leavers, so we find out about UBI and whether we’ll see it rolled out across Wales.
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00:00 It has been over 12 months since we launched our basic income for care leavers in Wales
00:05 pilot. The pilot offered young people leaving care and turning 18 between the 1st of July
00:11 2022 and the 30th of June 2023 the opportunity to receive a monthly income of £1,600 for
00:18 a period of two years, which equates to £1,280 a month after tax.
00:26 The basic income has been touted for success around the world with many different trials
00:30 and pilot schemes taking place internationally. The current Welsh pilot involving care leavers
00:35 in Wales is the first in the UK and has been revolutionary in how it's been rolled out.
00:39 It had a particularly big uptake with hundreds of eligible participants opting to take part
00:43 in the trial, which the Welsh Government says shows has proved its success in the early
00:47 stages.
00:48 635 young people leaving care in Wales joined the pilot and started receiving their basic
00:55 income payments. This represents 97% of those who are eligible for the pilot. It's very
01:01 good to have so many young people take up this opportunity and I'm extremely pleased
01:06 that the uptake rate is higher than that of other opt-in basic income schemes worldwide.
01:12 UBI has never truly taken off around the world with plenty of people strongly opposing the
01:16 idea of basically free money for everyone, but this trial in Wales offered to those with
01:21 particular challenges compared to non-care leavers is a unique opportunity to see how
01:26 it could impact the lives of those with more complex challenges. In adulthood, those in
01:30 favour of the idea have often said about how people on UBI don't in fact leave the job
01:35 market in big numbers and many stay in education. The additional money they receive is seen
01:40 as more of a basic needs fund, with people then free to use other income on other things
01:44 outside of food and shelter.
01:45 And I've been pleased to sit down and hear about the difference this money is making
01:49 to their lives, not only in the present, but also in terms of how they're thinking about
01:53 their future. For example, some of the young people I've spoken to have talked about it
01:58 allowing them to save, to support themselves for the future and explore funding further
02:03 qualifications which could boost their job and career prospects, as well as help meet
02:07 their current living costs and expenses.
02:10 It's not certain yet what this trial will mean for the idea of universal basic income
02:14 across all of Wales, not just care leavers, but considering it is a trial, many are worried
02:18 about the impact it will have on those involved once the two year trial comes to an end. And
02:23 these young people are left without money, but the Welsh Government have made assurances
02:27 that the money is far from the only part of the scheme, and additional help and advice
02:31 is a big part of it all.
02:33 Within this pilot there are over 600 individuals with their own unique stories, each taking
02:38 different paths in their lives. As such, the effects of the pilot on the young people are
02:42 likely to be diverse, with some outcomes more immediate and obvious, while others may be
02:47 more gradual.
02:49 Universal basic income is controversial, but the trial ongoing in Wales has managed to
02:52 help a group of people with complex challenges while also testing out the effectiveness of
02:57 UBI. Whether we'll see it rolled out more in the future will rest heavily on the outcomes
03:01 of this pilot.
03:02 James P. Watkins, Local TV.
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