Brits to receive Universal Basic Income for the first time ever

For the first time ever, Universal Basic Income is set to be trialled in England in what is being called an 'exciting' plan.

Under the scheme, 30 people in two areas will be selected to receive an unconditional sum of £1,600 each month for two years.

The effects the additional cash has on their lives will be monitored for research purposes.

Advocates for this model argue it provides additional security for people in and out of work, and would help wipe out poverty completely.

On the other hand, critics insist that such a policy would prove to be too pricey and that it would be better to target support to those in need.

Nina Matthews / Alamy Stock Photo

Will Stronge, director of research at the UBI supporting think tank Autonomy, said: "A guaranteed Basic Income could be transformative for welfare in this country.

"All the evidence shows that it would directly alleviate poverty and boost millions of people’s wellbeing: the potential benefits are just too large to ignore.

"With the decades ahead set to be full of economic shocks due to climate change and new forms of automation, basic income is going to be a crucial part of securing livelihoods in the future."

The two areas selected for the scheme are Jarrow in the North East of England and East Finchley in London.

Those participating in the trial will be selected at random from a pool of volunteers, with 20% of places being reserved for those with disabilities. The organisers will also aim to ensure the groups reflect local demographics.

Another group will also be selected but not paid the additional £1,600, so that researchers can compare their lived experiences during the period.

The project's organisers, which include researchers from the University of Northumbria, are seeking £1.6 million in funding to get the project off the ground.

Realimage / Alamy Stock Photo

While this trial would be the first of its kind in England, similar pilot schemes have been tested in other parts of the UK.

The Welsh government is already testing out UBI, by paying £1,600 to young people leaving care between July 2022 and 30 June 2023. It will report on the outcome of the trial after it has finished.

Green Party MP Caroline Lucas praised the prospect of a UBI trial in England: "It’s so exciting to see these plans for England’s first ever basic income pilot scheme.

"We are in such uncertain times - worsening job insecurity, spiralling cost of living and a welfare state creaking at the seams.

"We need big, bold ideas to provide security and dignity for all - tackling poverty, improving wellbeing and transforming society. The Government can’t ignore this idea any longer."

The policy has received growing support among politicians in recent years.

Other backers include the Mayor of Greater Manchester Andy Burnham and ex Shadow Chancellor John McDonnell, who had pledged to trial the policy if Labour won the 2019 election.

During the Covid-19 pandemic, over 170 MPs and peers had called for a basic income to give Brits economic security during the uncertain period.

However, then-Chancellor Rishi Sunak rejected these calls, telling the Commons: "We’re not in favour of a Universal Basic Income, although we have strengthened the safety net for the most vulnerable in our society with over £7bn invested in improving our welfare system."

Topics: Money, UK News, Politics

Ben Thompson