In 2022, Wales launched the UK’s first basic income pilot for care leavers – an ambitious experiment offering more than 600 young people £1,600 a month (£1,290 after tax), with no conditions attached. The two-year scheme, available for those who turned 18 between 1 July 2022 and 30 June 2023, aimed to address the poverty and instability that often define the transition from the care system to adulthood.
For 20-year-old Annalise from Caerphilly, who had her son just three months before the pilot began, the money brought security and dignity. “I was able to buy him his formula, toys and new clothes without worrying,” she told Big Issue. “Knowing I could help him like that, and him not watching his mam struggle to put food on the table, honestly, felt like a blessing.”
Annalise, now aged 20, was one of the care leavers on the basic income pilot
While basic income pilots are nothing new, the decision by the Welsh government to centre the pilot on care leavers was informed by years of concern within the Senedd about their life chances.
Professor Sally Holland, who now leads the pilot’s independent evaluation at CASCADE, previously served as children’s commissioner for Wales. “It wasn’t a surprise to me that care leavers were chosen for the pilot,” she explained. “The government was already aware of poverty levels in this group. In my time as commissioner, I’d seen ministers visibly moved by young people describing what they lived on day to day.”
The results, so far, suggest the scheme allowed participants to experience elements of daily life that others take for granted. “Just having the stability of an income – they didn’t have to worry about things like food, they were able to go on day trips, buy a bike, join a gym,” Holland told Big Issue. “It’s so easy to take things for granted when you haven’t been in care. The impact of them being able to socialise with friends really struck me. It’s a very everyday thing, but it wasn’t an everyday thing for these young people.”
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The pilot’s announcement in February 2022, however, coincided with mounting public anxiety around the cost of living crisis, and the scheme’s unconditional nature drew criticism across the UK.
Lorna Stabler, speciality lead for social care at Health Care Research Wales and research fellow at CASCADE, recalled the climate at the time of the launch: “There was a financial crisis, mortgage rates were rising, and people were worried about Ukraine. Then you say, ‘We’re going to give free money to teenagers who grew up in care, with no conditions.’ It set people off. ‘Why are they getting that when I’m struggling with my bills?’”
The pilot’s design had unforeseen consequences. The payments pushed some recipients just above the financial threshold for legal aid and care leavers taking part became ineligible for vital support. This was particularly an issue for those who had arrived as unaccompanied asylum-seeking children (UASC) trying to resolve their immigration status. The UK government had the power to allow an exception for participants, but refused. The issue gained further political traction when prime minister Rishi Sunak used the pilot to suggest Wales was “paying” asylum seekers to arrive via small boats during a Commons Question Time in April 2023.
Jane Hutt. Image: Matthew Horwood / Welsh government
Jane Hutt, Wales’ minister for social justice, explained: “The pilot did become politicised. Right-wing press, aided and abetted, I’m afraid, by some political sources, were trying to make out that we were giving money to so-called ‘illegal migrants’, which, of course, we weren’t. We were giving money to unaccompanied asylum-seeking young people.” Despite independent fact-checkers debunking the claims, the damage to public perception was significant.
The pilot’s real-world impact was often profound, even in unexpected ways. Holland recalled one young person who needed urgent medical attention. “It was in the midst of all the stories about ambulance waiting times,” she said. “So they did what lots of other people in the population do – they got a taxi to the hospital, got treated and got the reassurance they needed. That was massive for them. But there’s no way they’d have got a taxi before if they hadn’t been on basic income.”
Annalise pointed to inconsistent support before and during rollout: “The lack of preparation from the government was the main issue. If I needed something to do with the pilot, I’d be bounced around the Welsh government and the HMRC because no one had heard of it. I think there also should have been financial help or talks about budgeting in the lead-up to it, though, in case someone is bad with money.”
When the payments ended at age 20, she said, “Trying to work out finances a different way was a little bit of a struggle. I believe the basic income for care leavers should continue as it’s so helpful, especially when you’re starting to get on your feet as an adult. But they need to look into how they manage it better.”
Though the pilot had its challenges, it offered something rare to many young people leaving care: stability, choice and the dignity of financial autonomy. For Annalise and others, it marked the beginning of adult life with a foundation many of their peers take for granted. “Being a part of the pilot very much made me feel supported and helped me feel like I had a good start to my adult life,” she said.
The Welsh government has said the basic income for care leavers won’t continue after the pilot ends in 2025, citing costs. However, an evaluation of the scheme will be published in 2027 and its findings will be taken into account. Until then, the pilot remains a bold world-first intervention – a recognition that young people leaving care deserve more than survival. They deserve a chance to thrive.
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