Part of the debate – in the Senedd at 2:58 pm on 28 June 2022.
Thank you very much, Joel James. I was grateful we had some positive comments at the start of your questions today. I think you recognised that this pilot could offer great opportunities for our care leavers, and this is a basic income pilot.
I just want to start by answering your questions about why we're focusing this pilot on care leavers. We're, as a Welsh Government, committed to supporting those who are living in poverty, ensuring they receive adequate financial support so that everyone in Wales can live happy and healthy lives. Care leavers have a right—this is about a right for care leavers to be fully supported, as we do through their care experience, as they develop into independent young adults. We know that too many young people leaving care do face significant barriers to achieving that successful transition into adulthood. So, basic income is a direct investment in a cohort of young people who we want to support so that they can thrive while they secure their basic needs.
Care-experienced young people are a group, as I've said, we've already consistently chosen to invest in—a top-up for the child trust fund, additional council tax exemptions, the establishment of the St David's Day fund. But it is recognised that, compared with their peers—. This is where you've got to answer the question, I have to say, as well: why not invest in these care-experienced young people who have been disproportionately disadvantaged and who are statistically more likely to experience issues such as homelessness, addiction and mental health? So, this is about actually building on the support, enabling our young people leaving care to take part in this pilot. And given the support, they could have the best possible chance for this transition into better, easier and more positive experiences.
This is a decision, this is a choice that we have made, a priority that we have in our budget. Indeed, it was in our manifesto and programme for government that we would pilot basic income. So, just to clarify on the funding, we've allocated £20 million to the delivery of this pilot over the course of three years. It comprises the payments themselves, administration costs and research and evaluation costs. Clearly, it depends on the take-up and participation rates; it's not compulsory, this pilot, but just in terms of the need for additional financial advice and support, that's going to be provided for those eligible to take part in the pilot—that's what care-experienced young people said. Approximately £2 million has been allocated for this service for the full period of the pilot, over three to four years. So, that's pre pilot through to post pilot as well. So, the funding is there to fund the organisations that actually have responsibility, as we do Voices from Care Cymru and all those who currently support our young people. But also, as I've said, it's the role of local authorities to support them as well.
As a point of principle, I would say—and taking this as a rights-based approach—all of those who meet the eligibility criteria will be entitled to sign up to the pilot if they choose to do so, and it should be treated no differently from any other form of income. Just in terms of their needs and their life experiences, of course there will be existing ongoing support from young people's advisors. Safeguarding procedures would be followed as standard as well, if there was any concern about perceived risk. But this is about actually having a package of support that's going to be available.
Now, it's interesting to look at trials across the world of basic income. For example, one of the longest running basic income schemes in North Carolina has followed children who were aged nine to 13 in 1992. These children grew into adulthood, and lower prevalence of substance misuse disorders were observed in those receiving the income. We've looked at these trials, we've looked at the outcomes. That scheme also demonstrated a 22 per cent decrease in reported criminal activity among 16 and 17-year-olds, particularly in terms of substance misuse and minor crimes.
This pilot will be evaluated very clearly in terms of the responsibilities, but also it is going to be, in terms of evaluation—. We're going to be looking, as we move through this, in terms of support for these young people as the pilot concludes. They will have the backing, the support and the ongoing input in terms of not just financial advice and support, signposting well-being, education, work and broader financial advice. Many of these young people will be accessing other schemes, like the young person's guarantee. I mean, if you have chosen, or otherwise I hope you will, to look at some of the statements that have been made by young people today, young people in care who said to us—and these include young people who've been in care—that this gives them hope, this shows that this Welsh Government, and, I hope, this Senedd, believes in these young people and believes that they should have these opportunities we're providing.