Welfare could be transformed

The welfare state was created on the back of two world wars, which themselves encompassed years of worldwide economic collapse, hyper-inflation, poverty and wage disparity.

Economist William Beveridge’s reforms were arguably the largest shift in societal, political and economic policy in the democratic age, unmatched before or since.

People suddenly had protection from disease and ill-health, as well as an income if they became unemployed or unable to work. Politicians and economists alike are suggesting ways to mitigate the worst on the labour market, stock market and globalised economies. One such idea, trialled in various countries, is the universal basic income (UBI) – a set payment for every citizen from the government.

Dr Enkeleida Tahiraj, visiting senior fellow at the London School of Economics, is a specialist in the policy and has advised the European

Commission, the UN and the World Bank on economic policy.

She notes the upheavals caused by the coronavirus pandemic could act as “drivers” necessary to affect huge shifts in government policy.

“The catalyst for change in Beveridge’s time was the human and economic costs of two world wars, but also the need for a response to protests arising from the hardships of the interwar years,” she said.

“So it seems possible to consider that a UBI is more likely to be introduced rather like Universal Credit, albeit reaching everybody and without the problems that Universal Credit continues to have.”

Thinktank Reform Scotland wants every adult to be paid £5,200 and child £2,600 per year – at a cost of

£20 billion for Scotland and £235bn for the UK Treasury, offset by tax increases, and elimination of benefits made redundant by its introduction.

Critics argue UBI would be a “disincentive” for people entering the labour market.

“The catalyst for change in Beveridge’s time was the human and economic cost of two world wars. DR ENKELEIDA TAHIRAJ