Why is Finland trialing universal basic income?

The experiment was launched in January 2017 and 2,000 participants have been receiving a €560 (£490) monthly basic income payment, which is independent of any other income they may have and not conditional on undertaking an active search for employment.

Researchers will study the effect of increasing cash incentives for work and simplifying the social security system on the employment rate of the study participants.

The Finnish centre-right government is austerity focused but is looking to reduce the country’s 8.5 per cent unemployment rate. This trial is being viewed as a method of doing just that.

Supporters of a basic income argue it would help get unemployed people into temporary jobs, rather than forcing them to remain unemployed to qualify for benefits.

They say it would provide a safety net, address insecurities associated with workers not having full-time staff contracts, and help boost mobility in the labour market as people would have a source of income between jobs.