3. Statement by the Minister for Social Justice: Basic Income for Care Leavers Pilot

Part of the debate – in the Senedd at 3:04 pm on 28 June 2022.

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Photo of Luke Fletcher Luke Fletcher Plaid Cymru 3:04, 28 June 2022

Diolch, Dirprwy Lywydd. This pilot is very welcome, especially for those of us in the Siambr who have campaigned or are campaigning for a universal basic income. Granted, this isn't a universal basic income, but it is a basic income, and it still will provide us with valuable data and direction in our journey to a universal one.

We've talked about our reasons for supporting UBI in the past. Part of that reasoning is to tackle the rampant levels of poverty here in Wales. Again, this pilot will give us valuable data and the ability to measure against that objective, given that it is open to some of the most economically vulnerable members of society.

It's disappointing to note the unwillingness of the UK Government to co-operate on this. Taxing the payment is one thing, but the way in which they will be counting it against universal credit is unfair. Using gross rather than net, assessing people for money they won't actually receive is just bizarre and completely unfair in my view. But the unwillingness to co-operate on a progressive policy doesn't surprise me—just another example of the disdain Westminster shows for devolved Governments, further evidenced by the news last night, of course, on scrapping the Trade Union (Wales) Act 2017.

Now, young people leaving care are often already particularly vulnerable to exploitation, as Joel rightly pointed out. There are concerns, which have been raised by Barnardo's Cymru, that this basic income pilot, by providing a large lump-sum payment, which is widely known about, will leave care leavers open to becoming magnets to exploitation by rogue landlords, other young people and criminals, for example. Safeguarding is key. There are likely to be unintended consequences that arise and become clear as the pilot is running, as this pilot will be effecting the lives of some of the most vulnerable in our society. It's important that the Government and the young person's advisers keep on top of this and that Welsh Government makes adjustments where necessary.

Given that care leavers can voluntarily join, I'd be interested to know if the Government will approach those who decided not to take part in this pilot to find out why they came to that decision not to join. And, of course, basic income leaves those with no extra costs relatively better off under a lump-sum payment than those who face additional costs, such as disability-related costs or childcare. Given that young people taking part in this pilot will likely have their benefits effected as a result, how will Welsh Government ensure that those with extra disability-related costs, or those who fall pregnant, for example, during the pilot, are not at a disadvantage to others in the scheme? And further on from that, when the Government evaluates the pilot, how will it take into account the effects of the pilot on those participants with intersectional issues?

An important point for us to also consider is what happens at the end of the pilot. It is welcome that Welsh Government will maintain contact with participants, especially given that once the pilot ends, the money ends, and £1,200, give or take, is a substantial amount of money to have lost, and that, of course, is the figure after tax. Joel made that point, and I think it is a fair point to make.

Finally, given the issues that Scottish Government found in their research into basic income pilots, as well as the fact that certain groups in society miss out through flat-rate lump-sum payments, what other anti-poverty schemes has the Welsh Government considered evaluating in the future? Does the Minister think there might be greater merit to universal basic services, for example?