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Canada Trials A Basic Income For Unemployed And Low-Waged Residents

Canada Trials A Basic Income For Unemployed And Low-Waged Residents

Ontario is trialing the new policy with 4000 of its citizens to see how impacts health, wellbeing and productivity

Claire Reid

Claire Reid

Ontario in Canada is trialing a basic income for 4,000 of its citizens, to see what effect it has on those who are unemployed and on low incomes.

Officials in the Canadian province have decided to test the policy to see what impact it has on health, wellbeing, productivity and earnings, CNBC reports.

The plans will see people who are unemployed or on low incomes receive an annual income of up to $17,000CAD (£9,807), couples can get up to $24,000CAD (£13,845). Ontario is the latest in a number of regions across the world to provide a basic income to all residents, regardless of whether they're in work or not.

Jodi Dean, who received her first basic income payment last month, and her daughter Madison. Credit: PA

As well as the basic income, recipients are allowed to keep half of whatever they earn at work, so there is an incentive to go out and find employment.

If the trial is proved to be successful, it could be rolled out to more of the province's 14.2 million citizens or even promote other regions of the country to sign up to the scheme.

Ontario's Premier Kathleen Wynne, said that that one of the main driving forces behind introducing a basic income was the introduction of machines and robots into the workplace Wynne believes this boost in tech has displaced workers and left it so there aren't enough jobs to go around.

Kathleen Wynne. Credit: PA

She told CNBC: "I see it on a daily basis. I go into a factory and the floor plant manager can tell me where there were 20 people and there is one machine. We need to understand what it might look like if there is, in fact, the labour disruption that some economists are predicting."

However, as good as the idea sounds, Ontario officials have said that getting people to sign up to the trial hasn't been easy, with many fearing there is a catch, or that they may be left out of pocket when the test scheme finishes. So far, only 400 people have signed up.

One man who has signed up is 46-year-old Dave Cherkewski who has been unable to work since 2002 due to mental illness.

Dave Cherkewski is one of the people to sign up to the basic income trial. Credit: PA

He told the news outlet that the extra $750CAD a month is helping to remove some of his stress, saying he's 'never been better after 14 years of living in poverty'.

He added that the extra money means he can focus on trying to find a suitable job without having to worry about paying rent or his bills.

Source: CNBC

Featured Image Credit: PA

Topics: World News, Canada