Jeremy Corbyn has pledged the Labour party will investiage the idea of a universal basic income if he wins the leadership election.

The policy would lead to a replacement of means-tested benefits with a standard flat-rate payment for all citizens.

Mr Corbyn said Labour would both research and test the policy, which has support from most the party.

Speaking at an event at Bloomberg, the current Labour leader confirmed his interest in a universal basic income and also proposed a “right to own” for workers.

“Labour will look to create a 'right to own', giving workers facing a change of ownership or closure of a firm the first refusal in putting together a worker-owned alternative,” The Guardian reported Mr Corbyn as saying.

A recent report by Compass, a left-wing pressure group, argued for a transitional system of universal basic income where every adult receives a payment of £71, pensioners £51 and children £59, on a weekly basis.

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This system would lead to the personal allowance of £11,000 being scrapped and tax rates rising.