The time has come in the UK for a Universal Basic Income (UBI). Recently open democracy published a letter signed by senior members of the NHS, MPs, academics and members of the charity sectors calling for a UBI.

As the letter states traditional social security policies always leave gaps. The benefits system is supposed to act as a safety net, but all nets have holes. Some people who are in insecure work, self-employed or who’ve been ill often fall through the holes in the welfare system leaving them at risk of receiving no benefits or waiting months for benefits to be paid.

The UK welfare system is complex, labyrinthine mix of services. Sometimes deliberately so. The administration costs are huge. A UBI would reduce administration costs significantly. The introduction of a UBI would mean that people who suddenly lose their jobs won’t have to go through the complex, lengthy and sometimes demeaning process of applying for benefits.

There are also multiple benefits of a UBI to individuals, business and the economy as a whole. These include;

Entrepreneurship – a UBI has the potential to stimulate entrepreneurship and the willingness of people to take career risks such as starting a new business.

Student support – addresses the need for student finance and to support students during their studies

Social Care – we have a social care crisis in the UK. A UBI supports people who choose to stay at home to care for loved ones.

Maternity – a UBI could support new mothers and helps address the financial hardship often associated with maternity leave

Homelessness – a guaranteed regular income for the homeless could provide basic needs and may provide them with the ability to rebuild their lives.

Employment rights and empowerment – a safety net of a UBI protects employees from unscrupulous employers and being forced to remain in jobs or roles they hate

Some criticisms levelled at the idea of a UBI include that it disincentives work and would be too expensive. Setting a UBI at or around the minimum wage should provide incentives for most people to work yet keep people above the poverty line. It will force employers exploiting zero-hour contracts and the minimum wage to improve terms and conditions. Using changes to taxation and for example changes to tax free income levels could address the issue of affordability.

The NHS was born out of a great crisis in the UK. Maybe this current crisis could see the birth of a UBI.

“Weltrekord fürs Grundeinkommen – Initianten schaffen Eintrag ins Guinness-Buch” by Kopf oder Zahl is licensed under CC BY