THINKTANK the IPPR have attacked plans for a universal basic income, claiming that the state giving every adult in the country £100, and every child £50, would cost an “eye-watering” £20 billion per year in Scotland and would increase relative child poverty.

But supporters of a citizens income said the IPPR had a “very superficial modelling and understanding” of the policy.

In their assesment, the IPPR suggests Universal Basic Income (UBI) may be misguided and that topping up the child element of Universal Credit by £150 per month instead, would be much more effective at lifting children out of relative poverty in Scotland, and at a much lower cost of £950m per year.

Russell Gunson, director of IPPR Scotland, said: “There may be a number of good reasons to consider the introduction of a universal basic income in Scotland but it seems reducing relative child poverty is not one of them.

“Just a few months ago the Scottish Parliament unanimously passed new targets to bring child poverty down to under 10% in Scotland by 2030. Our aim must now be to focus on how we can deliver on those targets with action from parliament, government and from business and the voluntary sector.”

He added: “A UBI could cost an eye-watering amount of money, around £20bn per year in Scotland at these rates. Even just a small proportion of that could be used to make huge inroads into poverty rates in Scotland.”

Jamie Cooke, from RSA Scotland disagreed, saying the IPPR report was based on “a very superficial modelling and understanding of the system being discussed”.

He said: “The costs of a basic income system for Scotland have been treated in isolation without seeming to factor in savings from rolling in some existing parts of the welfare and taxation system, and no regard for the wider benefits expected to arise from the benefits a basic income could bring.

“An increase in child benefit may be cheaper but would fail to address the challenges around insecurity, precarious work and wellbeing, offering a false economy and, at best, a sticking plaster.”

A Scottish Government spokeswoman welcomed the IPPR’s research but suggested they wait for the results of the £250,000 pilot programme.

“We are absolutely determined to reduce the deeply ingrained inequalities that exist across Scotland. Citizens’ Basic Income is a bold idea and we are committed to support the local authorities that are looking to test it. This will allow us to better understand the costs, benefits and savings such an approach could bring.

“Four councils have been successful in their bid for funding from the Scottish Government and we await their proposals with interest.

“The IPPR’s study provides analysis for one possible model of Citizens Basic Income, and this, alongside other evidence will be helpful in determining suitable approaches.”

SNP MP Ronnie Cowan, who has long campaigned for a UBI, said the pilots would be vitally important to the debate: “Studies that have been carried out already show that those in receipt of a basic income show a willingness to work and an increased level of happiness and positivity.”