Money for nothing: Universal basic income to be trialled in England for first time

Two areas have been selected to pilot the policy, Jon Stone reports

Participants in Jarrow and East Finchley will be randomly selected (iStockphoto)

A universal basic income of £1,600 a month is set to be trialled in England for the first time under “exciting” plans drawn up by researchers.

Under the pilot programme, 30 people in two areas would be paid an unconditional lump sum each month for two years, with the effects monitored to understand how it affects their lives.

Advocates of a basic income say the policy would provide security to people both in and out of work and eradicate poverty for good, while critics say it is expensive and that support should be targeted.

“A guaranteed basic income could be transformative for welfare in this country,” said Will Stronge, director of research at the think tank Autonomy, which is backing the plan. “All the evidence shows that it would directly alleviate poverty and boost millions of people’s wellbeing: the potential benefits are just too large to ignore.

“With the decades ahead set to be full of economic shocks due to climate change and new forms of automation, basic income is going to be a crucial part of securing livelihoods in the future.”

Researchers have picked two areas to trial the scheme: Jarrow in the northeast of England, and East Finchley in north London.

Participants will be selected at random from a pool of volunteers, with 20 per cent of places reserved for people with disabilities. Organisers will also try to ensure the groups reflect local demographics.

A control group will also be recruited and not paid the basic income to see how their experiences differ during the same period.

The project’s organisers, which include researchers from the University of Northumbria, are now seeking £1.6m in funding to get the study off the ground.

Interest in the idea of a universal basic income has been rising in recent years, with a spike in interest during the pandemic when many people were put out of work.

While the trial will be the first of its kind in England, pilots are already taking place around the world looking at the idea.

The closest is in Wales, where the devolved government is already piloting the policy by paying an unconditional £1,600 to young people leaving care for two years. It says it will report on the outcome after the trial finishes.

“It’s so exciting to see these plans for England’s first ever basic income pilot scheme,” said Green MP Caroline Lucas, whose party has advocated the policy for decades.

“We are in such uncertain times – worsening job insecurity, spiralling cost of living and a welfare state creaking at the seams.

“We need big, bold ideas to provide security and dignity for all – tackling poverty, improving wellbeing and transforming society. The government can’t ignore this idea any longer.”

Other advocates of a UBI include Greater Manchester mayor Andy Burnham, who has repeatedly said the proposal needs to be looked at. In 2019 the former shadow chancellor John McDonnell pledged to trial the policy if Labour was elected.

In 2020 over 170 MPs and peers called for a basic income during the pandemic to give people economic security.

But as then-chancellor Rishi Sunak rejected calls, telling the Commons: “We’re not in favour of a universal basic income, although we have strengthened the safety net for the most vulnerable in our society with over £7bn invested in improving our welfare system.”

Cleo Goodman, co-founder of Basic Income Conversation, said: “We’re hopeful that this plan will result in the first ever basic income pilots in England.

“No one should ever be facing poverty, having to choose between heating and eating, in one of the wealthiest countries in the world. Basic income has the potential to simplify the welfare system and tackle poverty in Britain.”