Universal Basic Income: what it is, who is taking part, and what is the £1,600 per month England trial about?
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Universal basic income is being trialled for the first time in England
The first trial of a universal basic income (UBI) scheme in England is set to happen, with thirty people being given £1,600 a month with no strings attached to see how UBI affects their physical and mental health.
The trial is being run by the think tank Autonomy which is looking to launch a two-year pilot programme. But what is the UBI and how will the trial work? Here is what you need to know.
What is universal basic income?
The idea is to create a guaranteed income for everybody in society and is designed to cover people’s basic needs to create a minimum income floor. The UBI will be paid to individuals rather than households, and issued as regular sums rather than a one-off lump sum.
As it is universal, there will be no testing nor requirements to be met, and everyone is entitled to it no matter how much they earn. The payment will come in cash form – as in money straight to a bank account rather than in the form of vouchers or as food or services.
What does the trial look like?
The idea behind the trial, which is being run by Autonomy, is to see how money affects the lives of the recipients. There will also be a control group so researchers can compare the experience of those receiving UBI and those who are not. The 30 people taking part are from two areas – central Jarrow in the North East and in East Finchley, in North London. Anyone from these areas can put themselves forward to take part and the recipients will be randomly selected. However, 20% of the participants will go towards people with disabilities.
The trial is being supported by the charity Big Local and Northumbria University, with the researchers looking for financial backing for a two-year pilot programme. However, Autonomy says if funding is secured then it’s more likely to have come from private philanthropic sources, or local or combined authorities.
The costs see a £1.15 million budget for the basic income payments over two years and there is a further cost of about £500,000 for the project’s evaluation activities, admin, and community support teams.
Why is universal basic income being trialled?
Autonomy said the proposed pilot will help make a case for a national basic income and to see the benefits behind having one. Will Stronge, Director of Research at 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 well-being: 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.”
Critics say that UBI is expensive, and would require a massive overhaul of the current tax and social security systems already in place. There are also arguments that it will de-incentivise people from working and take money away from those who are more in need of it. The Green Party tweeted that the UBI has “the potential to lift people out of poverty and improve public health.”
Some responses have seen a flurry of support, with some people saying the creative arts can now flourish. A lot of people have criticised the trial, calling “a step towards communism.”