Johnson warms to universal basic income as millions face cash crisis
Temporary national salary under consideration to help freelancers, renters and the self-employed
THE Prime Minister has opened the door to giving British workers a weekly cash payment, as the Government announced new protections for tenants.
Boris Johnson yesterday said a temporary UBI – a “universal basic income” – was something the Government would consider in measures to protect workers against the economic impact of the coronavirus.
Rishi Sunak, the Chancellor, is developing a plan to support workers in the wake of the £350billion support package for businesses he announced on Tuesday.
The Daily Telegraph understands UBI is “on the table” as part of Treasury discussions to find a solution. However, options such as amending the existing universal credit system are believed to be more likely. In the Commons, Ian Blackford, the SNP’S Westminster leader, asked Mr Johnson if he was considering “a financial package for people”, before suggesting a “temporary universal basic income, especially for freelancers, renters and the self-employed.”
Mr Johnson said it was “one of many such suggestions” being looked at.
Under UBI, everyone would get a set monthly income, regardless of means.
Yesterday, Mr Sunak was asked by MPS whether he would also consider using the existing national insurance system to help workers. Mel Stride, the chairman of the Treasury select committee, asked if the Chancellor would use a “reverse national insurance approach for jobs” to, in effect, push “money back the other way”.
Mr Sunak said the Treasury was “looking at all potential measures”, while Mr Johnson promised to protect private renters from eviction due to the coronavirus crisis as part of measures “unprecedented in peacetime and unprecedented in the last century”.
Last night, Jeremy Corbyn wrote to the Prime Minister warning that Labour’s support for the emergency coronavirus powers being introduced to Parliament today would be conditional on a number of demands being met.
They include a provision requiring the legislation to be reviewed by every six months via a Parliamentary vote, increasing statutory sick pay to the level of other European countries and increasing and speeding up Universal Credit payments.
Labour has also called for the period in which renters cannot be evicted to be doubled from three months to six.
The Government yesterday said “no renter in either social or private accommodation would be forced out of their home during this difficult time”.
Emergency legislation will be brought forward as a priority so landlords will not be able to start proceedings to evict tenants for at least three months. Ministers said landlords, who represent half the rental market, will get a three-month mortgage payment holiday so they will not default on their payments if tenants cannot pay rent.
Robert Jenrick, the Housing Secretary, said: “No renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.”
Meanwhile, Robert Halfon, the chairman of the education select committee, said the fallout from coronavirus could be “potentially catastrophic” for lowpaid and self-employed workers, adding: “It has to be a number one priority, or we will face potential destitution.”
“The Prime Minister said we have to do whatever it takes,” he said. “We are all social democrats now – we need central planning and the big state.”
A Downing Street spokesman said: “Our priority is to work up solutions that can be delivered quickly … and reach the right people. This includes through the current welfare safety net and … benefits like Universal Credit.”
‘We are all social democrats now – we need central planning and the big state’