Universal Basic Income – pipe dream or panacea?
William Ransley
In June 2023, it was announced that there is going to be a trial of Universal Basic Income in England for the first time. This essay will examine what Universal Basic Income is, the benefits and problems of a Universal Basic Income, and whether I think that Universal Basic Income should be introduced in England.
What is Universal Basic Income?
UBI ( ‘ UBI ’ ) is defined in a report by the Joseph Rowntree Foundation as ‘ a regular cash payment every individual receives without any reference to their other income or wealth and without any conditions ’ . 1
UBI is not a new concept. A similar idea was proposed by Thomas Paine, an English-born founding father of America, in the late 18 th century. He argued that the mass enclosures of common land meant a form of basic income was required; if the ability to earn money was reduced or removed, it was only fair to provide an amount to live on instead. 2 In the modern sense, UBI has been put forward by some as a way to radically change our economy and society, to ensure that nobody lives in poverty. It is proposed as an amount paid by a central authority without any form of means test, though possibly with different payments for groups of the population, such as working-age adults, children and pensioners. UBI could take the place of current welfare payments or supplement lower payments. The UK trials, sponsored by an independent think-tank, are offering 30 people based in Jarrow (north- east England) and East Finchley (London) £1600 per month for two years, with no strings attached. There will be a control group of 30 people who will be monitored over the same period of time, and the differences in the groups will be evaluated during and after the trial. 3
What are the arguments in favour of UBI?
Proponents argue that there would both be both economic and social advantages to UBI. 4 From an economic point of view, there are inevitably big changes coming in the job market. Increases in globalization and the rapid development of automation and artificial intelligence will undoubtedly change the number and types of jobs available. We can see in our near future a world where the taxi driver is replaced by a driverless car or a journalist by ChatGPT. We already have large numbers of the population living with the insecurity of low paid temporary jobs or zero-hours contracts. UBI would provide a baseline for economic security; a safety net for those living in a world of uncertain 1 Joseph Rowntree Foundation (2021) ‘Universal Basic Income, Good Idea?’ at www.jrf.org.uk/report/universal-basic-income-good-idea. Consulted 9 August 2023. 2 Wilson, S (2023) ‘UK launches universal basic income trial’, MoneyWeek , 26 June at UK launches universal basic income trial | MoneyWeek. Consulted 10 August 2023. 3 Autonomy (2023) ‘A big local basic income: proposal for a locally- led basic income pilot’ , at https://autonomy.work/portfolio/basic-income-big-local/. Consulted 9 August 2023. 4 Pettinger, T (2020) ‘Uni versal basic income – Pros and cons’ , at https://economicshelp.org/blog/17048/government/universal-basic-income/. Consulted 10 August 2023.
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