Council leader backs basic income pilot scheme

Partners involved in exploring the feasibility of a Citizens Basic Income (CBI) pilot in Scotland have completed the draft final report on their findings.

The report concludes a CBI pilot is desirable, but recognises the significant challenges involved.

Over the past two years, Fife, North Ayrshire, City of Edinburgh and Glasgow City Councils have worked together with NHS Health Scotland and the Improvement Service to explore the feasibility of a Scottish CBI pilot. The concept is based on offering every individual, regardless of existing welfare benefits or earned income, an unconditional, regular payment.

As well as the resources provided by the partners involved, the Scottish Government provided £250,000 to support the feasibility work in Scotland.

Led by the Citizens’ Basic Income Feasibility Study Steering Group, partners have now developed a proposed model for a CBI pilot which would aim to understand the impact of CBI on poverty, child poverty and unemployment, as well as health and financial wellbeing, and experience of the social security system.

Now, the draft final report is being released as the four councils involved prepare to go through the formal democratic process to discuss and debate the findings, before formally passing to the Scottish Government at the end of the month.

The Steering Group commissioned two significant pieces of research over the course of the study.

The Child Poverty Action Group in Scotland researched the potential interactions between a CBI pilot and the current social security arrangements. This work explored how a pilot study of CBI could impact on eligibility for other welfare benefits and associated ‘passported’ benefits.

Economic modelling of the potential impacts of a Scotland-wide CBI was led by the Fraser of Allander Institute at the University of Strathclyde in collaboration with the Institute for Public Policy Research (IPPR) Scotland and Manchester Metropolitan University.

The steering group have now designed a preferred model of CBI for piloting in Scotland which would run over the course of three years. This would allow sufficient time for the realisation of short and some medium-term outcomes. A one year preparation period would also be needed.

Two levels of CBI payment are proposed. The high level is based on the 2018 Minimum Income Standard (MIS) produced by the Joseph Rowntree Foundation in order to have a model that is likely to be able to substantially reduce or eradicate poverty. The second level of payment is more closely aligned with current benefit entitlements and provides an opportunity to test the effect of a CBI which is set at a lower income level.

Councillor Joe Cullinane, leader of North Ayrshire Council, said: ‘The study clearly shows why we should pilot a bold and radical Citizens’ Basic Income.

‘It has the real potential to combat poverty and tackle economic insecurity. A pilot would not only assess the impact and possible benefits on people’s lives but it would also test what economic choices individuals make with the greater economic freedom over their relationship with the Labour market that CBI would offer.

‘As we rebuild our economy post-COVID, we must consider innovative solutions in recreating the social security safety net and now would seem the ideal time to test Citizens’ Basic Income as we face a global economic recession that will risk pushing more families below the poverty line.’