A benefit to everyone

Policy analyst Annie Dell, THQ, explains the outcome of a recent debate about the pros and cons of an alternative benefits system

IN the latter part of 2019, Raynes Park corps officer Major Nick Coke invited members of THQ’s Public Affairs and Social Policy Unit to join a collaborative debate with his Bible study group. The debate focused on the merits of an idea known as Universal Basic Income (UBI).

UBI is a theoretical replacement for the UK’s current benefits system, such as universal credit. In the new system, every individual – including children – would receive a basic amount of money from the government, no matter what their income is. This would mean that everyone has enough money to access necessities such as housing, food and basic amenities.

The world of employment is changing, rapidly. A quarter of today’s jobs in the financial services did not exist ten years ago. One study in the USA argues that 85 per cent of the jobs that will exist by 2030 have not yet been invented.

Jobs are becoming more flexible, and people are increasingly expected to be professionally and financially adaptable to the impact of shifts in the way we work, such as automation, increased periods of unemployment and multiple career changes. According to an analysis by the Office for National Statistics, about one and a half million jobs in England are at high risk of becoming automated in some way. As the world of employment evolves, society’s needs will evolve too.

The purpose of UBI would be to reduce or even prevent poverty, increasing equality across society. There is no set definition of what it actually looks like in practice. For example, payment rates might differ depending on the model implemented. Instead, UBI is loosely defined through five key principles:

1. It is periodic, being paid at regular intervals as opposed to a one-off grant

2. It is a cash payment, which allows people to decide what they do with the money without any restrictions

3. It is paid individually and not by household

4. It is universal, so that everyone gets paid the same amount, no matter what their financial situation is

5. It is unconditional, being paid to a person regardless of whether they are in work or looking for work

The idea of UBI is becoming increasingly popular. Research from the University of Bath found that half of Britons would like to see some form of universal support given out regardless of employment status.

There are arguments of strong merit both for UBI and against it. The Public Affairs and Social Policy Unit was interested to hear a range of views from across the country, which resulted in the recently held debate.

The debate raised many points relating to the theory behind UBI and the barriers to implementing an entirely new benefits system. The group spent a considerable amount of time bringing biblical principles about wealth and community into the dialogue.

The consensus was that, while there are strong arguments in favour of UBI, it is important to recognise that a new financial system is not a one-stop fix, which some believe it to be. Money will not solve all problems, and the group felt that UBI would not tackle the deep social issues – family breakdown, loneliness, substance misuse and issues that arise from adverse childhood experiences – that face many of the people The Salvation Army helps.

Debating theory can be difficult, but the group discussion was a great first step. There was ample discussion about whether a UBI system would encourage people to move into higher-paying jobs by freeing them up to re-train, or whether it would become a disincentive to work. Both sides made strong arguments, but in the end it is just a theory, and the debate could never truly predict the outcome of the alternative system.

Finally, the debate considered how a UBI system would be paid for, but suggested that this was something that would need to be discussed further in the future. While UBI would replace our current benefits system, including universal credit, there is no certainty that this would totally offset the costs of implementing it. Research from parliament shows that the net annual cost of UBI could be anywhere between £8 billion and £304 billion depending on the amounts given to each individual.

Looking to other nations can give us an insight into how UBI could turn out. The Netherlands and Italy have both launched trials and the Kenyan government is paying adults in one village $22 a month for 12 years to find out whether a regular payment can help lift them out of poverty.

The Public Affairs and Social Policy Unit continues to consider the best way to further engage in the UBI debate.

Get in touch and have your say on the subject by emailing the Public Affairs and Social Policy Unit: public. affairs@salvationarmy.org.uk