The UK government has blocked a request for young asylum seekers on a universal basic income (UBI) pilot scheme in Wales to receive free legal aid.

The Welsh government plans to include asylum seekers as part of its basic income pilot for care leavers.

This is a two-year trial scheme which pays £1,600 a month (£1,280 after tax) to individuals who turn 18 and leave the care system between 1 July 2022 and 30 June 2023.

The government in Wales had sent a letter to the government in Westminster with concerns that taking part in the pilot may impact on young people seeking asylum’s eligibility for free legal aid.

Prime Minister Rishi Sunak has accused the Welsh government of “paying” for small boats to cross the Channel and said the move could incentivise people smuggling.

The Welsh government says it is “disappointing” that “inaccurate and misleading claims” are being made.

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Wales Secretary David TC Davies, told the Commons on Wednesday that it was “extraordinary” that the Labour government in Cardiff would “spend millions on handing out a universal basic income to people including asylum seekers”.

“Not only that, but to then exempt them from having to pay the same legal bills that the rest of us would be subject to.”

Plaid Cymru’s leader in Westminster, Liz Saville Roberts, hit back, saying Mr TC Davies “suffers from feudal delusions of grandeur”.

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“It isn’t within his remit to grant or reject requests made by the government of Wales, or to ride roughshod over our democracy,” she said.

Ms Saville Roberts added that it was “time to retire” the position of secretary of state for Wales.

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A Welsh government spokesperson said: “The Basic Income Pilot scheme is about giving the most vulnerable people in our society a start in life.

“It is disappointing that inaccurate and misleading claims are being used to trivialise these sensitive issues.”

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