SCOTLAND is poised to join Finland and Holland in piloting a “citizens’ income” after Nicola Sturgeon announced her government would provide funding to support councils researching how the policy could be implemented.

In a surprise move the First Minister set out her intention as she stressed “more fundamental reform” of social security was needed in the longer term to address the issues of combating poverty and inequality.

“Our Parliament is providing real global leadership on this issue and we should all be proud of that” she said setting out her plans to tackle poverty.

“While we must take a range of actions now to tackle poverty, we should also consider options for more fundamental reform in the longer term.

“One idea that is attracting interest, not just here but internationally, is that of a citizens’ basic income.”

She added: “Contemplating such a scheme inevitably raises a number of practical issues and questions, not least around the current powers of our Parliament — and undoubtedly there are arguments for and against.

“But, as we look ahead to the next decade and beyond, it is an idea that merits deeper consideration. I can therefore confirm that the Scottish Government will work with interested local authorities to fund research into the concept and feasibility of a citizens’ basic income, to help inform Parliament’s thinking for the future.”

The move was welcomed by supporters of the policy which gives everyone in a society — from children, workers and pensioners — a set level of income.

Under the policy welfare benefits and pensions are replaced with an unconditional flat rate payment regardless of whether the recipient is in or out of work. Any earnings on top of the payment is taxed.

Four Scottish councils — Edinburgh, North Ayrshire, Glasgow and Fife — are currently working on feasibility plans with views to run a pilot.

The First Minister’s announcement was welcomed by the Scottish Greens and by the Royal Society of Arts argue that in the growing trend of automation governments need to respond to a future world where fewer people are needed in the work place.

Jamie Cooke, Director of RSA Scotland said: “We are delighted to see this commitment from the Scottish Government to support the development of UBI pilots. We have been working closely with the various Scottish local authorities who have shown leadership in this field. Support from the Government will provide a huge impetus for action.

“We face challenges within the current social security system as it struggles to respond to modern challenges, and are in a period of flux in terms of the changing nature of work and employment. UBI offers an opportunity to respond to these challenges, breaking down barriers to work which currently exist, offering space for better quality work, and helping move people out of the precarious lives that many are currently stuck in.

“This is a significant opportunity for Scotland to be a global leader in social policy innovation, and to work with other pilots across the world to develop robust evaluation of UBI as a response to the challenges we face.”

The policy was among a wider package of reforms to tackle social issues including poverty and homelessness.

To help address inequality, the First Minister announced proposals for a new £50 million fund for addressing child poverty, with the money to be available over five years.

This will be backed by a fund of £50 million over five years to support anti-homelessness initiatives and pilots while an extra £20 million will also be invested in alcohol and drug services.

Adam Lang, head of communications and policy at Shelter Scotland, said the new action group, while “extremely welcome”, faced significant challenges.

“Last year, a household became homeless every 19 minutes in Scotland and tomorrow morning more than 6000 children will wake up without a permanent home of their own,” he said.

“The need for action is urgent and we look forward to working with the new group to quickly deliver changes on the ground to see improved support for those currently enduring or at risk of homelessness.”

Jon Sparkes, chief executive of Crisis, said: “Banishing rough sleeping from our streets is an ambition we fully support and chimes with our intention to produce a plan to end homelessness in Scotland for good.”

He said the charity also looked forward to working with the government to tackle the problem of homeless people being “left to languish” in unsuitable temporary accommodation.

Susan McPhee, head of policy at Citizens Advice Scotland, said: “We are pleased to see the recognition of the value of advice through the proposed family financial health check to be rolled out next year.”