Universal Basic Income (UBI) is a simple idea that could help every citizen have a better life. It gives people a regular payment from the government without asking for anything in return. This money can be used for basic needs like food, rent, and health care. UBI is different from current benefits, which often have many rules and conditions.
Many people in the UK still struggle with money, even with support from the Department for Work and Pensions (DWP). In 2023, around 14.4 million people lived in poverty, including 4.2 million children. This shows that the current system might not be working well for everyone. UBI is being looked at as a possible solution to help more people in a fair and simple way.
With changes in the job market, rising living costs, and new technology reducing jobs, the need for a strong support system is greater than ever. UBI has been tested in different countries and even in Wales. The results have been promising, and many experts believe that now is the time to look at UBI more seriously.
What UBI Really Means
Universal Basic Income is a fixed amount of money that the government gives to everyone. It is:
- For All People: Everyone gets it, no matter how much they earn.
- Regular and Reliable: It is paid at the same time every month or week.
- Easy to Understand: No need for complicated applications or checks.
This idea could replace or work alongside the current benefits system. The goal is to make sure no one falls below a basic level of income.
Problems with the Current Benefit System
The DWP runs many support programs, including Universal Credit and disability payments. These are important, but they have some big problems:
- Too Complicated: Applying can take a long time and is confusing.
- Hard to Qualify: People must meet strict rules about work and income.
- Shame and Judgment: Some feel embarrassed to ask for help.
- Risk of Losing Money: If someone doesn’t meet certain conditions, their payments may be stopped.
- Unstable Support: Payments often change depending on income, which makes it hard to plan.
These issues mean that many people who need help either don’t get it or don’t get enough.
Real-World Tests of UBI
UBI has been tried in different places, and the results have been positive:
Finland (2017–2018)
- 2,000 unemployed people received €560 per month.
- People felt less stressed, healthier, and more hopeful.
- More of them found work compared to others.
Ontario, Canada (2017–2019)
- Participants got C$1,400 monthly.
- Health and food security improved.
- Fewer people needed emergency healthcare.
Wales (Started in 2022)
- Young people leaving care receive £1,600 each month.
- Early reports show better financial independence and life satisfaction.
These tests show that UBI helps people feel more stable and hopeful about their future.
How Can the UK Pay for UBI?
Some people worry that UBI would cost too much. But there are ways to make it possible:
- Higher Taxes for the Wealthy: Rich people and big companies could pay more.
- Carbon Taxes: These would also help protect the environment.
- Less Paperwork: UBI would need fewer workers and less admin.
- Wealth Taxes: Taxes on large inheritances and assets can add funds.
One study says a full UBI in the UK would cost £427 billion per year. But the savings from simpler systems and more economic activity could help balance the cost.
Concerns and How to Solve Them
UBI isn’t perfect. Some people worry about:
- People Quitting Work: But trials show most people still work, or use the time to learn and grow.
- Prices Going Up (Inflation): Smart rules and taxes can keep this under control.
- Fairness: Some want UBI to be given only to the poor, but making it universal avoids judgment and keeps it simple.
These concerns are real but can be managed with good planning.
People Need More Help
The cost of living is rising fast. In 2023:
- Prices went up by 11.1%.
- Rent in London went over £2,000 per month.
- More people used food banks—up by 33%.
UBI could help people handle these costs and reduce the pressure on emergency services.
Looking Ahead: A Brighter Future
UBI is a fresh and fair idea that could change how we support people in the UK. It is simple, fair, and could help lift millions out of poverty. While there are some challenges, the success of trials in other countries shows it is worth trying.
As jobs change and prices rise, it is time to consider new ways to support everyone. UBI could be the solution that helps people live with dignity, freedom, and security.