Diolch, Llywydd. In February this year, I announced the Welsh Government’s intention to develop and deliver a basic income pilot for care leavers in Wales. Today, I'm pleased to confirm that the pilot will begin on 1 July 2022 and run for a total of three years. During this time, we will test the stated benefits of basic income, such as improving health and financial well-being, and strengthening the opportunities and life chances of individuals. Basic income is a direct investment in these young people and their futures.

Over 500 young people leaving care who turn 18 between 1 July 2022 and 30 June 2023 will be eligible to receive 24 monthly payments at a value of £1,600 per month pre tax, starting the month after their eighteenth birthday. This means, for example, that if a young person leaving care turns 18 in July this year, they will receive a payment of £1,280 in August and will continue to receive this payment on a monthly basis until July 2024, subject to any changes in the basic rate of income tax. In line with feedback and advice from our local authority partners, participants in the pilot can choose whether to receive this payment either monthly or twice monthly. This is in alignment with the current universal credit system. Participation in the pilot is non-compulsory and, for those that do participate, will be unconditional. Any participation in additional support or evaluation will be on a voluntary basis.

Since my announcement in February, we have considered a range of options for each element of delivery. Following engagement with care-experienced young people and the practitioners who work with them, it's clear the most effective and appropriate approach to delivery will be to separate responsibility for different aspects of the pilot to different agencies. I will outline the approach we will take today.