HUNDREDS of unemployed teens leaving care will be given a £1,600 monthly handout, starting this week.
Up to 500 18-year-olds in Wales will be eligible for the Universal Basic Income (UBI) scheme from Friday.
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Teens who have been brought up in care will get the basic income for up to two years, giving them £192,000 before tax.
There are no restrictions on what the money can be spent on and people can choose whether to receive the payment monthly or twice a month.
Ministers think it could help teenagers leaving care transition better into adult independence and reduce poverty.
The money will be taxed at the basic rate and is thought to be counted as income by the UK government, meaning it would impact eligibility for benefits.
It is 70% of Wales’ average salary, which was £582.20 per week and £2,251 per month last year.
Officials say it is the real living wage.
All young people leaving care can get the payments from the first month after their 18th birthday.
What is Universal Basic Income (UBI)?
The idea of UBI is that it provides every person with a basic amount of money to live on, regardless of their circumstances.
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It is a proposed blanket handout paid to all.
This is regardless of their age or whether they were in or out of work covering basic food and clothing costs.
It would be different from the current welfare system, which offers benefits like Universal Credit based on factors such as how much you earn and who you live with.
The trial by the Welsh government won’t go quite that far, but it will give the cash to teens leaving care when they turn 18.
There is no single, universally accepted model of how UBI could work in practice.
Exactly how UBI works, like how much you get, would depend on how such a scheme was designed.
There are currently no UBI schemes other than the new Welsh pilot.
What cost of living help could I get?
Millions of people will get extra cash this year as the cost of living squeeze continues.
A number of payments are being handed out in the coming months and do not need to be paid back.
Next month, more than eight million households will be given the first chunk of their one-off £650 cost of living payment.
People on the following means-tested benefits will get the cash: Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), income support, and Pension Credit.
The first lot of money is worth £326 and will be paid between July 14 and the end of the month.
Payments will go into the bank accounts claimants usually get their benefits.
To get the cash, you will be to be on eligible benefits or have begun a successful claim.
Six million people with disabilities will receive £150 to help them pay for energy-intensive equipment they have, which could lead to increased bills.
A lot of disability benefit recipients also get means-tested benefits – so the £150 payment is separate from the £650 payment.
Every household will start to benefit from a £400 energy bill discount from October onwards.
The energy discount will be dished out from this point, and payments will be given out in installments over the following six months.
Customers paying their energy bill by direct debit should see the money credited to their account.
A £300 one-off “Pensioner Cost of Living Payment” will be dished out to eight million households in November and December this year.
It will be given to those who already get the Winter Fuel Payment – which is worth between £100 and £300 for those over state pension age.
