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The mirage of universal basic income

7 June 2023

Benefits are no substitute for pay rises. Photo Workers.

Politicians and capitalists tout the introduction of a universal basic income (UBI) from time to time. The aims are often vague and linked to the fantasy that productive work won’t be needed in future.

The idea does not stand up to reality. Previous limited attempts at implementing UBI have failed – and were far from “universal” or offering enough to live on.

Trials

Yet that has not deterred acolytes from promoting yet more trials. The latest one is described as a “micro pilot scheme” – justifiably, as only thirty people are to receive it in each area. The trial is seeking backing for a UBI of £1,600 a month in two places in England: Jarrow, in north-east England, and East Finchley, in north London.

This proposal comes from Autonomy, a consultancy which describes itself as “an independent, progressive research organisation that focuses on tackling climate change, the future of work and economic planning”. It is looking for financial backing for the two-year pilot plan.

Rehash

Autonomy director, Will Stronge said: “Our society is going to require some form of basic income in the coming years, given the tumult of climate change, tech disruption and industrial transition that lies ahead”. In other words, a rehash of the thought that somehow society can operate without work, and that unemployment is a natural and unavoidable consequence. Stronge omitted the drive to net zero and artificial intelligence from his list; other proponents of UBI cite those too.

Participants will be monitored to see how the payments affect their mental and physical health and to see if they choose to work or not! How that can be extrapolated is not stated – several advocates of UBI argue that it would replace other, conditional, state benefits and tax allowances, which isn’t happening in this trial.

Not relevant

Except in the minds of consultants and political theorists, it’s hard to see how UBI would be relevant to the economic problems faced by workers right now. But it persists.

The ill-fated 2019 Labour Party manifesto mentioned UBI trials. You’d expect that to be quietly dropped now. But last year the Labour mayor of Greater Manchester Andy Burnham said UBI was an idea “whose time has come”. And the Welsh Labour government launched a scheme also paying £1,600 a month for two years to young people leaving care – which hardly qualifies as “universal”.

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