Commons Sense

House of Commons · Westminster Hall

Universal Basic Income

15 June 2022 · 8 other contributors · 9,069 words

Opened by Angela Crawley SNP Lanark and Hamilton East

Responding minister: David Rutley

Benefits & Welfare

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

Read the full transcript on Parliament.uk

At a glance

Angela Crawley raised concerns about universal basic income in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the impact of the cost of living crisis on households, pushing them into poverty.
  • A universal basic income is proposed to ensure secure, regular payments for every citizen, enabling them to afford basic needs.
  • A study by the University of York suggests a universal basic income could significantly reduce poverty across various demographics.

Key requests to Government

I urge the Minister to consider extending his party's new compassionate approach to the benefits system, abandon cruel practices such as sanctioning those who are desperate, and seriously consider establishing a pilot scheme for universal basic income. The biggest barrier is ideological, not practical or financial, given the substantial Department for Work and Pensions budget.

How the debate unfolded

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

Opened the debate

Angela Crawley SNP Lanark and Hamilton East

I am concerned about the impact of the cost of living crisis on households across the country, pushing them further into poverty and destitution. The current welfare system designated recipients as being deserving only if they meet certain conditions, which is cruel and unforgiving towards desperate people who are seen as undeserving. A universal basic income would mean secure, regular payments for every citizen without threat of disruption, ensuring that everyone can afford food, housing, and have a minimum standard of living. A study by the University of York found that a universal basic income could cut poverty by more than half, bring child poverty down by over 50%, pensioner poverty by 50% and working-age poverty by a quarter.

Other contributors (8)
  • Alison McGovern Lab Birkenhead

    Ms McGovern questioned the specifics of universal basic income, highlighting that while it is difficult to propose exact figures and details, a clear argument with basic facts about how much the universal income might be and how it would be funded is necessary. She also emphasized the distinction between universal basic income and minimum income guarantee, advocating for Labour's approach to support full employment, especially including disabled individuals.

  • Beth Winter Lab Barrow and Furness

    Asked the hon. Gentleman if he agrees with the Wealth Tax Commission's proposal to raise £260 billion. Inquired about Labour's previous support for basic income research and whether it continues to be supported in the party's current stance.

  • Christine Jardine Lib Dem Edinburgh West

    The welfare state is not equipped for current crises; many people who never thought they'd need benefits are now in need. The concept of a universal basic income, ensuring everyone has food, shelter, and warmth, should be considered to safeguard the most vulnerable.

  • Daniel Poulter Con South Norfolk

    In principle, the concept of a universal basic income is promising. However, Daniel Poulter asked whether under her definition, a person would receive only a universal basic income and no other benefits such as unemployment or disability support.

  • Gareth Davies Con Grantham and Bourne

    Gareth Davies congratulated the hon. Lady on securing the debate and giving a well thought-out speech, but raised concerns about the cost of implementing universal basic income. He cited a study estimating the annual cost at £316 billion for even a modest amount. Disagreed with UBI due to its high cost, exacerbation of inequality, lack of evidence supporting its effectiveness in alleviating poverty, and the need for economic growth through work incentives.

  • Hywel Williams PC Arfon

    We must address the paradox where the poor are given less support to work harder while the rich receive tax cuts for working harder. We need a universal view of income support and dignity for everyone. Reminded Ronnie Cowan of three principles of social security: income replacement, addressing particular needs, and promoting solidarity. Emphasised the need for a more generous system than currently exists.

  • Jim Shannon DUP Strangford

    Mr. Shannon highlighted concerns about the working poor struggling to make ends meet due to rising costs, using a personal anecdote and a recent story from his constituency where a child could not attend a school trip because of financial constraints. He emphasized the need for reducing fuel and electricity costs and uplifting the cap on benefits to support those who are barely surviving despite full-time work. Mr. Shannon argued that businesses face challenges in sustaining operations due to increased shipping costs, which could lead to further price hikes if they have to increase wages.

  • Ronnie Cowan SNP East Ayrshire and Arran

    Stated that there is no evidence from any pilot programme worldwide showing people are indolent and do not want to work. Emphasised the current welfare system punishes people for returning to work. Basic income is essential to raise people out of financial poverty, improve health benefits, encourage start-up businesses, increase further education take-up, and provide hope. Pilot projects in Scotland and other parts of the UK are crucial for gathering data on the effectiveness of basic income.

Government Response

David Rutley

It is an honour to serve with you in the Chair, Ms McVey—one of Cheshire's finest. I am mindful of the time that is available. Our welfare system is centred on universal credit, a dynamic benefit reflecting claimants' needs from month to month based on their circumstances. In contrast, a universal basic income provides a standard monthly allowance paid to all working-age adults regardless of earnings. The Government has real, evidence-based concerns about UBI regarding work incentives and targeting those with greatest need. Concerns are shared by many think-tanks and seen in trials in different parts of the world, such as Finland, where conditionality is vital in the social security system.

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