Here in the UK, the Labour Party and Conservative Party have been alternating as the main party in government since 1945. Labour are currently the main opposition party, but the Conservatives have no majority in Parliament and there may be a general election as early as November.

The focus of the nation’s attention, during the election, may be on Brexit, but there are other important policy issues at stake. And one of these is the potential introduction of Basic Income.

It’s great that Andrew Yang, his ‘Freedom Dividend’ and his YangGang are bringing so much publicity to the Basic Income cause over in the US. The reality, however, is that the chances of actually getting Basic Income implemented in the US would be so much greater if some other country gets Basic Income first. And the UK may be the prime candidate.

So, back to the UK: On Saturday 28th September, the Labour Party leader, Jeremy Corbyn, gave an important speech about our welfare system. And the headline news that arose from that speech was Labour’s promise to scrap Universal Credit.

For those not familiar with the UK’s welfare system, Universal Credit is a relatively new (and widely despised) welfare scheme that has been the focus of the Conservative Party’s welfare reforms. It sounds a bit like Universal Basic Income, but it is, in fact, nothing like it. Despite the name, it isn’t universal at all.

Don’t get confused: ‘Universal Credit’ and ‘Universal Basic Income’ are two completely different things.

Universal Credit is a hugely complicated, bureaucratic system, based on means-testing. It incorporates extremely harsh welfare sanctions for anyone deemed not to be trying hard enough to increase their earnings. And it has also been plagued by long delays, cost overruns and fraud.

The Labour Party’s view is that:

“Universal Credit has been an unmitigated disaster. As well as being behind schedule and over budget it is inhumane and cruel, driving people into poverty and hardship.”

There are millions of people who will wholeheartedly agree with that withering assessment. And so Labour is promising to scrap Universal Credit.

But then a very obvious question arises: What will they replace it with?

At this stage, Labour aren’t being explicit on that point, but Basic Income is the obvious solution. Labour’s shadow chancellor, John McDonnell, is a Basic Income enthusiast and has already backed the idea of having large-scale Basic Income pilot schemes. Labour has also commissioned and published a report on the subject.

But Labour know that the idea is still controversial — although mainly because people don’t know enough about it and are sometimes taken in by myths that naysayers like to spread around the internet.

And so Labour’s political thinking seems to be: Why campaign on a controversial policy, when we can simply corral support around the much less specific and less contentious policy of getting rid of Universal Credit?

That’s an idea that already has widespread support. The left will cheer it. The centre will cheer it. And even many Conservatives would secretly be glad to see the back of such an appallingly designed system.

Labour didn’t mention the phrase ‘Basic Income’ in its press release. But what they did say certainly pointed in that direction:

Labour will scrap Universal Credit and develop a new social security system built on the following three principles: Dignity — social security is there to help and support people and the best way to do that is by treating people with respect and dignity, building trust and giving them agency over their lives;

Universalism — our social security system is there for all of us and we may all rely on it at some point in our lives. By seeking to bring back a universal element we will end stigmatisation and encourage social security to be held in the same esteem as universal services like our health and education systems;

Ending poverty — our social security system should reduce poverty, not create it, make it worse and drive people into it.

All three principles seem to point very heavily in the direction of Basic Income. The phrase, “treating people with respect and dignity, building trust and giving them agency over their lives,” is particularly telling. And you can’t get much more universal than a Basic Income.

Labour hasn’t committed to Basic Income yet, but it does seem to be getting all its ducks lined up.

Image by Gellinger on Pixabay

This may be their plan:

Step 1: Soon after taking office, a Labour government would amend Universal Credit. Amongst other changes, they would remove the five week waiting period to receive a first payment and remove the harsh welfare sanctions.

Step 2: A number of Basic Income pilot schemes will then be announced.

Step 3: Then, even whilst these pilot schemes are still taking place, there is the possibility that Labour will introduce some sort of nationwide mini-Basic-Income scheme.

I don’t expect these new payments will be called ‘Basic Income.’ They might instead be referred to as a “Citizens’ Dividend” — or something similar.

And if people object to this new scheme (as some inevitably will), Labour will point to the success and popularity of our long-established and popular Child Benefit scheme. For decades, parents in the UK have received ‘Child Benefit’ payments — a weekly amount payable for each of their children. Until a recent change, these modest payments were entirely non-means-tested.

John McDonnell will argue (as he already has) that the Citizens’ Dividend scheme will simply be applying the same principles of universalism — only to adults as well as to children. Children will continue to receive child benefit. And adults will receive a similar amount as a Citizens’ Dividend payment.

Step 4: Then, when the various Basic Income pilot schemes are declared to be overwhelming successes, the way will be cleared for the Citizens’ Dividend to be gradually increased, until it replaces almost all other major welfare payments — with the exception of Housing Benefit and Disability payments.