Fife Council has taken the first step toward piloting a universal basic income in the region.
Councillors have agreed to the development of a business plan which would explore how such a radical scheme would work, who it would target and how it would benefit them.
If agreed, everyone in the pilot area would be given an unconditional, minimum payment to meet basic needs.
It would be paid to individuals, including children, rather than households and would replace the current welfare system.
It has not yet been decided which area of Fife would test the scheme but Kelty and Cowdenbeath have been widely touted as ideal communities because of their mixed demographics.
Advocates say basic income could cut poverty, improve health and social outcomes and reduce inequalities, while also recognising the value of unpaid work such as caring.
It has been made clear however, that implementing a pilot in one area and potentially changing benefits and tax codes for a section of the population would not be easy.
Fife Council officers will work with three other interested local authorities over the next year to 18 months to come up with the necessary business plan.
They will also need co-operation and funding from the Scottish and UK governments and, if agreement is reached, it could take a further two years to implement.
The council’s head of communities Paul Vaughan warned the development of a UBI pilot was complicated and added: “We are near the start of a process.
“The question of who will pay is one of the thorniest ones.
“We have said repeatedly we don’t think the council can fund this or deliver it without support from the Scottish Government, the UK Government and other benefactors.”
Mr Vaughan said: “In terms of how it would work, this is an unconditional payment to every individual.
“If you earn on top of that, you earn on top of that.
“The question then is about tax. You can design the tax system so that if you don’t need that basic income it can be claimed back through the tax code.”
Fife Council co-leader David Ross said all of these issues would be addressed in the business plan.
“The pilot is only the tip of the iceberg,” he said.
“As well as how would it work, there are decisions and debates about is it the right thing to do and is it the direction we want to take.
“For me, it’s worth taking this forward.”
