The idea of tackling inequality by paying all citizens a regular sum of money, irrespective of their financial situation, often referred to as a Universal Basic Income (UBI), is increasingly in vogue.

Touted as a way to boost consumer spending, and as a mechanism that could help redistribute the wealth created by machines as jobs are lost to automation, it is yet to be tested on a truly grand scale in a developed country.

But that might change, and soon. Nicola Sturgeon, Scotland’s First Minister, announced plans for trials of a Citizen’s Basic Income in Fife and Glasgow at the start of the year, and the UK Labour Party set up a working group to explore the idea in February, after John McDonnell, the shadow chancellor, said he was determined to “win the argument” in favour of universal income in the Labour Party.

So as the interest in UBI mounts, what would it look like in practice?

How would it work?

The idea is quite like a state pension: individuals would receive, as a basic right of citizenship, a set amount of money whatever their earnings. But models for UBI vary. An ongoing trial in Finland, which focuses only on a group of 2,000 unemployed people, is paying them about £480 per month. The payments won’t cease if they do find work, and they do not have to provide evidence of seeking work.