Basic income: Care leaver says money gives independence

A teenager who was given £1,600 a month as part of a government pilot scheme said it helped her rent a flat.

Kayla Ralph, 19, is one of hundreds of care leavers who took part in the basic income pilot in its first year.

New figures show the scheme is £2.5m overbudget as more people were eligible for the scheme than expected.

A Welsh government minister said she was "delighted" by the scheme but the Welsh Conservatives said it gave "false hope" to people leaving care.

Basic income schemes are where a government pays individuals a set salary, regardless of their means, with supporters saying it ensures no-one falls through the cracks in the benefits system.

Ms Ralph, from Cwmbran, Torfaen, got her first payment last September and "put a lot of it in [her] savings", she also saved up for driving lessons and hopes to buy a car.

She had been in the care system since she was 15 when she was split up from some of her siblings and eventually fostered by an aunt.

She hopes to go to university next year to study paramedic science.

Ms Ralph said: "I don't like to be controlled, I don't like people telling me what to do. So knowing that I have that control over my money and now my housing is quite important."

She read negative comments following previous articles she was part of and said she was aware the scheme was controversial.

"Don't judge us," she said.

"Not every individual my age is the same. Some are irresponsible but some are responsible.

"At the end of the day, leaving the care system and not having that financial worry is quite a big deal - not knowing where your food is coming from, where your rent is coming from."

It comes as new figures reveal that 635 people signed up in the first year of the pilot - 135 more than anticipated as more care leavers qualified during the year.

It means the scheme will be £2.5m over the expected annual budget as everyone is guaranteed payments for two years.

Social Justice Minister Jane Hutt said: "I'm delighted more than 600 care experienced young people have been eligible to take part in this initiative and are being given the support they need."

Welsh government figures also show 23% of people on the scheme were living in supported housing and 11% were former unaccompanied child asylum seekers.

Joel James, Welsh Conservative spokesman for social partnerships said his party was pleased the scheme was helping people, but it was "unaffordable" and gave "false hope to care leavers".

He said the extra 135 care leavers taking part above the projected number meant the pilot would "now run £5m over budget" which would not be spent on education or health, "two areas which the Welsh government is looking to make cuts because of budget mismanagement".

The Welsh government said the scheme had a 97% uptake rate and ministers had "initially allocated £20m to the delivery of this pilot over the course of three years based on original estimates of demand".

A spokeswoman said this budget covered payments to those taking part, as well as factors such as admin costs.

She added: "The Welsh government is currently prioritising budgets based on the principles of protecting frontline public services, as far as possible, and targeting support towards those at greatest need."