Parts of the UK are "at the brink" of trialling a Universal Basic Income to replace all benefits including Universal Credit.
The Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA) is urging the Scottish Government to scrap sanction-led employment benefits and lead the way by launching the UK's first basic income.
Scotland is "at the brink" of being the first area in the UK to try out a Universal Basic Income in some of its cities, according to a new report by the RSA.
And earlier this week, shadow chancellor John McDonnell said the UK Labour Party would explore the idea of paying a basic income, Birmingham Live reports.
The RSA wants an initial basic income of £2,400 a year to be paid to every adult and £1,500 to every child.
Co-op launches amazing £5 frozen meal deal which includes Magnums
The payments for adults would eventually be doubled to £4,800 each - that's £400 a month per person.
Everyone would get the money, regardless of whether they were working or not.
It's unclear at this stage if any additional financial support would still be available - such as to help unemployed single people who couldn't manage rent, bills and living costs with just one basic income of £400 a month.
Its report found "child destitution would vanish almost immediately" if an initial basic income was introduced, and if it reached the full £4,800 it could "completely eliminate destitution in Scotland".
Scotland is considering piloting basic income schemes in four cities, including Glasgow and Edinburgh.
Jamie Cooke, head of RSA Scotland, said: "Basic income is increasingly of global interest and Scotland is at the brink of doing something very different and bringing the first basic income pilots to the UK.
"Our research shows how an initial basic income could be introduced in Scotland in a way that is progressive, affordable and would halve destitution, while paving the way for a full basic income in the future.
"But the idea must be tested - and our engagement with Scottish citizens found support for experimenting against today's discredited Universal Credit system - which is why we suggest a robust stepping stone before a 'full' basic income is introduced.
"The idea has supporters from the SNP, Scottish Labour and the Greens, as well as others. We need to see a cross-party agreement to introduce pilots in Scotland.
"Obviously having the support of the UK Government of the day will be key, and John McDonnell's support this week makes this more likely.
"But failing this, the Scottish Government should pursue all options to delivering this - including invoking Exception 10 of the Scotland Act 2016 and developing a civil-society led UBI."
Three scenarios were modelled in the RSA's report - the status quo; a £2,400 per adult basic income; and the full basic income of £4,800.
10 tips from Money Saving Expert Martin Lewis to save hundreds of pounds
It found the full basic income would be the most fiscally progressive but cost the most at 3.5 per cent of Scotland's GDP, while the partial basic income is proportionately easier to fund due to the removal of the tax allowance, costing 1.2 per cent of GDP.
Anthony Painter, director of action and research at the RSA, added: "Under austerity, we have seen the state stepping back in terms of the cash support it offers people, while increasingly stepping in to police the behaviour of the people needing cash support.
'Damaging effects on health, wellbeing and trust'
"Basic income has been tested and shown to have a positive impact on wellbeing and trust without reducing participation in the labour market overall.
"Meanwhile, Universal Credit - relying on sanctions to control individuals - has been shown to have damaging effects on health, wellbeing and trust, and creates greater economic insecurity.
"This means we must consider a basic income to promote economic security and freedom, as an alternative to today's unpopular, threadbare and hostile welfare state."
