This month, thirty people will be given £1,600 a month, no questions asked, in a trial of universal basic income (UBI).
UBI could revolutionise the way we approach work, the benefits system and the way society functions if implemented. There are no requirements that the trialists have to make to receive the payment - everyone gets it, regardless of income.
People in central Jarrow in the North East and East Finchley in North London are taking part. Here is everything you need to know about UBI.
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Why is UBI being trialled?
UBI is a payment made to everyone in society and would go directly into a person’s bank account. Unlike other welfare payments, it is not means-tested or handed out as a voucher.
Supporters argue that this would simplify the welfare system and provide a safety net for everyone. Will Stronge, director of research at think tank Autonomy who are organising the trial, said: “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.”
Other potential benefits are that it would remove the stigma of receiving benefits and safeguard against potential job losses from automation and AI. It could also free people up to enjoy more leisure time and pursue voluntary work.
How will the trial work?
30 people in the two areas will receive UBI payments of £1,600 a month. Another group not receiving UBI will be studied too for comparison.
What are the arguments against UBI?
Critics of UBI argue that UBI would encourage people to not work. It may also divert money from those who most need it while supporting the very wealthy.
It would also be very expensive for the Government to give £1,600 a month to every citizen. It would also require completely changing the tax and benefits system, which would be costly and could take a long time.
Has it been trialled in other places?
Wales are currently running a UBI pilot for 18 year-olds leaving the care system. The Scottish Government has conducted a study of UBI too, but decided to move towards Minimum Income Guarantee instead targeted at those on the low incomes.
Finland trialled UBI for two years, paying 2,000 people £490 a month. They decided not to extend it after its conclusion in 2018, with its government focussing on other welfare systems.
Could UBI ever be trialled in Liverpool?
UBI could well have been trialled in Liverpool if political events had panned out differently. Liverpool City Council passed a motion in support of UBI in 2018.
The following year, then Labour Shadow Chancellor John McDonnell said his home city could be one of the first places to receive UBI under a government scheme under a future Labour government. Then Councillor Ann O'Byrne supported this, saying she had met with McDonnell about the plans.
She said at the time: “I am really excited about this opportunity for Liverpool to show the rest of the country how successful UBI can be for our citizens and for the economy.”
Labour, of course, did not win the December 2019 election, and since then the party nationally appears to have dropped support for the policy. However, with the policy still supported by some Labour MPs and the Liberal Democrats nationally, Merseyside could see UBI in the future.
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