Commons Sense

House of Commons · Westminster Hall

Universal Basic Income

13 October 2020 · 7 other contributors · 13,328 words

Opened by Ronnie Cowan SNP Inverclyde

Responding minister: Will Quince

Benefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Ronnie Cowan raised concerns about universal basic income in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the current welfare system, particularly universal credit, for not adequately supporting individuals during crises.
  • Economic instability and the threat of sanctions under universal credit are linked to poor mental health and potential suicide among recipients.
  • Calls for the UK Government to run pilot projects for Universal Basic Income (UBI) to assess its benefits and address welfare system shortcomings.

Key requests to Government

Minister, run these pilots across the UK to prove me wrong. If we had UBI pilots for universal credit before its implementation, many of the pitfalls could have been avoided and saved people from suffering. I claim that UBI reduces crime, gives more opportunities, improves health and mental wellbeing, strengthens community relations, and contributes to a stronger local economy.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Ronnie Cowan SNP Inverclyde

I am concerned about the failure of the current welfare system, particularly universal credit, to adequately support individuals during times of crisis. Economic instability contributes to poor mental health, and the threat of sanctions can push some recipients to suicide. Universal basic income (UBI) destigmatises recipients and removes psychological burdens by providing a set payment on a regular basis regardless of circumstances. Pilot projects in various countries have shown promising results, yet the UK Government has not taken any steps to learn from them.

Other contributors (7)
  • Chris Stephens SNP Glasgow South West

    Is my hon. Friend as concerned as I am that at the height of lockdown, although the herculean efforts of the DWP staff ensured that people got paid, many people were getting about £60 a month taken off them owing to advance repayments? The speaker supports the idea of universal basic income and highlights the issues with the current welfare system, particularly the five-week wait for Universal Credit. He mentions that there have been 20,000 individual submissions in support of UBI to a Select Committee on Work and Pensions. The Scottish Government has requested £250,000 over two years for a feasibility study but is unable to proceed due to the lack of tax powers from the UK government. Criticised the argument that a basic income discourages work by pointing to the Finnish model where employers had to offer better terms and conditions as people rejected precarious jobs.

  • Christine Jardine Lib Dem Edinburgh West

    Christine Jardine expressed her conversion to the idea of Universal Basic Income (UBI), citing the impact of coronavirus and the poverty it has exacerbated, with 4.5 million people in poverty. She advocated for UBI as a solution to provide support to carers, low-paid workers, and others who have fallen through the cracks during the crisis.

  • Jim Shannon DUP Strangford

    Jim Shannon highlighted the impact of COVID-19 on his constituents in Strangford, noting that many fell outside government schemes. He suggested a pilot scheme for universal basic income to help those who missed out and mentioned the importance of economic drivers like tourism. He also discussed the psychological benefits observed in Finland's experiment with UBI and the need for conditions to ensure people can work and support themselves. The MP underlines that the issue of universal basic income goes beyond finances and involves health concerns, including physical and mental responses to financial insecurity.

  • Karen Buck Lab Vauxhall

    Ms Karen Buck discussed the weaknesses of the current social security system, highlighting issues with universal credit and the need for a more adaptable social security framework to address income volatility and demographic changes. She raised concerns about the disproportionate use of sanctions and the reliance on food banks as social outcomes of existing policies. Ms Buck also emphasized that child benefit provides stability and is valued by recipients despite income fluctuations.

  • Lloyd Russell-Moyle Lab Brighton Kemptown

    Discusses the inadequacies of universal credit, highlighting its difficult application process and re-imposed work requirements. Proposes a system of universal basic income to alleviate financial stress and provide unconditional support, advocating for its dignity and liberating potential over traditional welfare systems.

  • Rachael Maskell Lab Co-op York Central

    The speaker highlighted the inequity of society and the challenges faced by individuals due to the economic crisis, particularly in York. She mentioned that 4.5 million people live in poverty and noted a dramatic rise in unemployment rates from 2.8% to 27%. Maskell argued for a pilot programme for Universal Basic Income (UBI) or citizen's wage to support individuals holistically and without judgment. She also emphasised the need for long-term solutions, progressive taxation, and a safety net for those struggling with economic recovery. Maskell suggested that a universal basic income could aid in workplace rehabilitation by providing a safety net for those who need time off due to illness, helping them return to work or engage in activities like volunteering and social prescribing.

  • Wendy Chamberlain Lib Dem North East Fife

    Chamberlain highlighted the urgent need for Universal Basic Income due to pandemic-related economic support gaps. She noted that millions missed out on financial assistance, with some ineligible due to administrative hurdles or timing issues. She also acknowledged the challenges faced by those engaging with DWP and universal credit for the first time during the crisis.

Government Response

Will Quince

I thank the Backbench Business Committee for granting time for this important debate and acknowledge all Members who contributed. I assert that universal credit has been vital during the pandemic, supporting millions of families with financial assistance and ensuring vulnerable individuals receive necessary support through £9.3 billion investment in welfare safety nets. The cost of a Universal Basic Income (UBI) would be astronomical, potentially costing £500 billion annually according to the Centre for Social Justice (CSJ). Implementing UBI could disincentivize work, increase taxation significantly, and leave vulnerable individuals worse off. Unlike universal credit, which targets support at those in greater need, a UBI system does not account for individual circumstances such as disabilities or childcare responsibilities, thereby failing to provide adequate income security. International evidence from Finland shows that UBI tests were abandoned due to their inefficiency. The Government remain unconvinced of the case for UBI and believe universal credit is the right approach, simplifying benefits, promoting work incentives, and providing targeted support in an affordable manner.

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