Coronavirus: Tory MP urges Government to adopt universal basic income to support self employed The Government has taken steps to prevent economic activity sliding during the pandemic, but has done little for the self employed

MPs, including those on the Tory backbenches, have called on the Government to adopt a universal basic income to support the near five million self-employed workers in the UK that have not yet received financial assistance to deal with the fallout from Covid-19.

The Government has taken a number of steps to try and prevent economic activity sliding due to the spread of the virus, including changes to sick pay and benefits, and guaranteeing 80 percent of the salaries for workers who are kept on by companies that would have otherwise let them go.

But the measures have done little to support those who are self-employed, something that has prompted a number of MPs to call for a basic income scheme to be implemented.

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The idea of a universal basic income has been promoted by some economists, doing away with the costs of administering various means-tested benefits and buffering workers against the rise of automation that threatens many jobs.

‘A system which is humane, rapid and above all, simple’

One Tory backer of universal basic income recalled receiving an “earful” from Margaret Thatcher after suggesting the idea to her.

Former trade minister Sir Edward Leigh urged the Treasury to adopt the system to help self-employed workers during the coronavirus outbreak.

He was among several MPs, including Tories, pressing for immediate action to assist the self-employed.

Sir Edward, MP for Gainsborough, told the Commons: “May I make a point from a public accounts point of view and urge on the Chief Secretary a system which is humane, rapid and above all, simple.

“The Treasury traditionally and the Department for Work and Pensions are obsessed with complexity, targeting and clawback, so what we need is a simple system.

“About 40 years ago I suggested universal basic income to Mrs Thatcher and got an earful for it for my pains.

“But something like that, which is very simply rolled out, which can be claimed by the taxi drivers, the cleaners, these sort of people. Rich people will not bother with this.

“So just get on with it, make it simple and do it now.”

‘The devil is in the detail of its delivery’

Treasury minister Steve Barclay, in his reply, said: “He (Sir Edward) will know that many policy ideas start with the simple, but the devil is in the detail of its delivery.”

Mr Barclay added: “What’s worth bearing in mind is if one looks, for example, at the central population there will be some – again a small number – who may be doing quite well in the current climate.

“Not what we’re focusing on now, but there’ll be some people whose trading will have gone up, a very small proportion, but many, many others who are suffering.

“The question we’re seeking to address is: how do we target our measures at those who are most deserving?”

SNP employment spokesman Chris Stephens joked Sir Edward could be the “red Ed” in the Commons, given his remarks.

Labour’s Bambos Charalambous, MP for Enfield Southgate, said: “Surely it’s better to have a system where one wealthy freelancer benefits, and 100 don’t go hungry?”

Earlier, Conservative Sir Graham Brady, MP for Altrincham and Sale West, said he recognised the complexity of the problem, but asked for “some indication” of how quickly an interim solution would be in place for those who are “desperate for help and desperate for clarity”.

Mr Barclay said there will be “some solution” for some of those affected via the economic measures already announced by the Government, adding that work is ongoing on the wider issues.

Earlier in the Commons chancellor Rishi Sunak had told MPs that he is “not in favour of a universal basic income, although have strengthened the safety net for the most vulnerable in our society with over £7bn invested into improving our welfare system for this year, including improvements to Universal Credit, Employment Support Allowance, and indeed the Local Housing Allowance”.

“Those payments are all available much quicker, much easier and more generously than they were before and I know that will make an enormous difference to many vulnerable people.”

The Chancellor said that while he is “determined to support” the self-employed the delay is due to the complexity of the scheme.

He said: “There are genuine practical and principal reasons why it is incredibly complicated to design an analogous scheme for the one we have with employed workers.”