Universal Basic Income pilot: Scotland concluded that the devolved administrations was without the ability to run a scheme

The Welsh Government is pressing ahead with a pilot project around the introduction of the “Universal Basic Income” even though the Scottish Government has concluded following a lengthy inquiry that such a scheme is beyond the powers of the devolved administrations.

Under UBI, every adult would get a payment in the government substantially higher than existing welfare benefits.

Many left-wing politicians and activists view it as a means of lifting many people out of poverty.

But critics express it would involve paying money to many who do not need it and take away the incentive to work.

While sympathetic towards the purpose of lifting people out of poverty, the Scottish Government concluded after a feasibility study that under current circumstances UBI was unworkable.

A report concluded: “The obstacles identified with the feasibility study pose significant challenges in progressing the search for [UBI] in Scotland, and even all of those other Uk. The sensible difficulties in implementing a pilot alongside the current social security system would require substantial capacity and resources to address current legislative constraints.

“The levers to deal with these barriers sit inside the UK government nor the Scottish Government or local authorities by themselves could implement a [UBI.]

“In the present landscape, any pilot would require considerable commitment from the UK Government to make the necessary legislative, technical and procedural changes required.”

The issue cropped up during a televised Scottish leaders' debate in the run-up to this month's election.

First Minister Nicola Sturgeon noted that Scottish Liberal Democrat leader Willie Rennie had “rightly” challenged her in the Scottish Parliament to implement such a scheme included in the country's recovery in the pandemic.

But she added: “To do this, I would need powers over taxation and social security. Without those powers, how do you think we obtain to some universal basic income?”

Mr Rennie replied: “We'd persuade the united kingdom Government -“

A disbelieving Sturgeon intervened: “You'd persuade Boris Johnson?”

We place it to the Welsh Government: “[You seem] to possess dedicated to a pilot project on Universal Basic Income (aka Citizens' Basic Income), although the Scottish Government has concluded after a comprehensive feasibility study that it and the other devolved governments don't have the powers introducing it.

“Is the Welsh Government conscious of the Scottish Government's focus on this issue and does it think Nicola Sturgeon is wrong?”

A Welsh Government spokesman responded: “We have followed the progress of universal basic income pilot projects around the world with interest and believe there is an chance to test the idea in Wales.

There is much more work to be carried out in this area but we are thinking about creating a small pilot, potentially involving people leaving care.”

We then place a series of inquiries to the Welsh Government:

• Has the Welsh Government squared the pilot scheme with the DWP?
• Is the funding for the pilot coming from the UK Government or from the Welsh Government's own resources?
• How much would the pilot cost the Welsh Government?
• Would the people leaving care who have been participating in the pilot need to quit their right to claim UK Government benefits like Universal Credit, and it is there a legitimate mechanism to enforce that?

The Welsh Government spokesman declined to comment further, stating: “That's all we can say right now. We're dealing with the detail and will update you when we've more.”

A DWP spokesman said: “We don't have any intends to introduce a universal basic income. It wouldn't incentivise work, target those most in need in society, or work for people who need more support, for example disabled people and those with caring responsibilities.

“Meanwhile our approach to welfare recognises the need for supporting people into well paid work, while protecting the most vulnerable in society.”

Former Bridgend council Labour leader Jeff Jones, a rival of UBI, said: “What the Welsh Government is proposing isn't a UBI pilot, which would entail paying money to any or all adults, including millionaires, but increasing benefits for a particular group.

“Welfare isn't devolved and it is clear that the UK Government will not fund this, therefore the money would need to come from the Welsh Government's core budget, meaning cuts elsewhere.

“It's a total waste of public money.”