Universal basic income could change things for everyone

CHELTENHAM ACTIVISTS’ NETWORK

RECENTLY the Echo reported a Gloucestershire County Council prediction that over 66,000 people locally are likely to lose their jobs in the next few months as the impact of Covid hits our county.

The majority of the families affected will have to fall back on Universal Credit. They will be shocked to discover just how penny pinching, mean spirited and unfair our benefits system has become.

The Welfare State designed to support us all when we face unemployment, illness and old age and act as safety net against poverty no longer truly exists in Britain.

Austerity policies have resulted in millions of people dependent upon charity in absence of sufficient support from the state. There are now over 2,000 food banks in Britain, the sixth richest country in the world.

There is an alternative.

In countries such as Canada, Finland and Netherlands governments are trialling the introduction of Universal Basic Income. Under UBI every adult receives a basic income directly into their bank account from the state sufficient to live on.

This replaces the range of complex benefits and pensions which currently cost billions of pounds to administer.

As a result, every adult in the country is guaranteed a life above the poverty level. Those whose incomes are sufficient to not need support merely have an adjustment to repay through the tax system.

Universal Basic Income is the single most effective and immediate response for dealing with economic crises such Covid. It ensures families do not fall through the poverty trap caused by a complex benefit system and eliminates the stigma of means testing.

It supports people, especially women, who fulfil socially beneficial tasks such as caring for the elderly. It also supports economic growth by encouraging entrepreneurship through a safety net to self-employment start-ups.

There would be a significant reduction in medical costs associated with poverty and homelessness.

The idea of a Citizens Income for all could transform life in Britain in the way the introduction of National Health Service did 70 years ago.