It is widely claimed that a Universal Basic Income (UBI) would prevent the emergence of stigmatising beliefs about its recipients. In addition, we argue that implementing a UBI faces several obstacles in delivering the same level of support to the poor as Conditional Cash Transfers (CCTs) can provide, particularly in the Global South. These premises trigger a trade-off, raising the question addressed in this paper: to what extent, if any, should we improve CCT recipients’ material situation at the expense of stigmatising them? To address this question, we propose a definition of social stigmatisation, we establish when it is morally impermissible, and we discuss its welfare contribution from an individual and societal perspective. Our discussion highlights several factors that could mitigate the negative impacts of stigmatisation. With these measures in place, the fact that CCTs generate stigmatisation should not, by itself, be a reason to reject them when they offer greater support to the poor.