A STUDY group including Fife Council has developed a citizens' basic income (CBI) pilot scheme that is "desirable" but will face a number of challenges.

It's one of four local authorities – joined by Glasgow, Edinburgh and North Ayrshire – who are looking at the feasibility of a regular, unconditional payment for all individuals.

The idea, brought into sharper focus by Covid-19 and the financial hardship it's wreaking, is that a CBI would replace benefits and be given to every citizen regardless of wealth, employment or personal status.

Led by the Citizens’ Basic Income Feasibility Study Steering Group, a proposed three-year model for a CBI pilot has been developed with the aim of helping to reduce poverty and create a fairer and simpler welfare system.

Paul Vaughan, head of communities and neighbourhoods at Fife Council, and member of the steering group , said: "Given the stubborn persistence of unacceptable levels of poverty and inequality in our society, it’s important that we consider innovative solutions.

"We are clear that a pilot of basic income is desirable and we have described how and what would need to be done for this to happen.

"However, we also recognise that, at this time, it’s not currently feasible to progress to a pilot due to the very complex legislative, technical and delivery challenges associated with the institutional arrangements needed for a pilot.

"If these barriers are to be overcome, sustained support across all levels of government (local, Scottish and UK) for the duration of the pilot and evaluation will be needed.”

As well as the councils, partners in the group include NHS Health Scotland while the Scottish Government has given £250,000 over two years to support the feasibility work.

A CBI would provide a basic income people could use whether they want to earn, learn, care or set up a business, and the group is looking at "how these would work financially, ethically, politically and how they could be evaluated".

Two levels of payment are proposed for the pilot scheme: a higher level based on the 2018 Minimum Income Standard (MIS) that is "likely to be able to substantially reduce or eradicate poverty"; and a second more closely aligned with current benefit entitlements.

Project manager Wendy Hearty said: "The challenge is that the current social security system is designed to identify financial need and pay people accordingly, while a CBI is designed to be universal.

"To achieve a balance, certain benefits would need to be continued alongside a CBI."

The four councils involved will discuss the findings before presenting the interim report to the Scottish Government at the end of this month, with a final report to follow in March next year.

She added: "Piloting a CBI will need the full co-operation of a range of institutions including the Scottish Government, the DWP and HMRC.

"We’ll continue to work with these organisations to see what would be possible including considering the legal and institutional barriers that would need to be overcome to pilot CBI."