A Universal Basic Income could cost less than the current welfare reforms, claims think tank Compass after modelling how it could be introduced to the UK and replace Universal Credit.
The left-wing economists’ report lays out two methods of doing this – a fast-track and slow-track route.
The quicker way would see the government pay every adult aged 18-64 £60 per week regardless of earnings with £40 per child up to the age of 17 and £175 to over-65s.
That would mean that child benefit and the state pension would be scrapped with means-tested benefit remaining.
Fascinating new paper on #BasicIncome by @StewartLansley and @HowardRReed for @CompassOffice. Always good to see serious analysis of whether it would work now, in our current problem space, rather than in some far-flung futurehttps://t.co/wV5KuXNGg9
— Chris Thoung (@ChrisThoung) March 18, 2019
As for the slower route – that would involve building up a citizens’ wealth fund over a longer period through long-term government borrowing, allocating revenue-generating public-sector assets and upping tax on the biggest corporations and richest individuals.