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Basic income: make poverty history
Other | Wednesday 26th August 2015 | Christina
Could Basic Income be the solution to saving the planet and ending poverty? We break the concept down.
What is it?
A Basic Income is rooted in the principle that the world is common property of us all. It’s a system whereby all citizens receive a regular, unconditional sum of money, regardless of their other income. It’s a type of social security that is not means-tested and is paid to individuals rather than households. Basic Income is not designed to be lived on alone (it would not be a high enough sum to do so anyway), rather it is designed to provide a safety net, ensuring that no one falls into poverty.
This is by no means a new system – Basic Income has roots dating back hundreds of years – and has benefits for those on both ends of the political spectrum. For the left, it offers a way to reduce poverty and inequality, and for the right, it offers a way to tackle the bureaucracy and costs associated with means-tested benefits.
And people are seriously trying to put it into practice. A Citizen’s Income was part of the Green Party’s election manifesto this year, with party leader Natalie Bennett saying this about the idea, “What it does is provide a sense of security. No one needs to live in fear. No one needs to think I have just been [benefit] sanction, I am not going to be able to put food on my table, I am going to lose my house next week”. The Dutch city of Utrecht is experimenting with a Basic Income scheme this autumn, and the Finnish government are considering the introduction of a basic income pilot scheme later this year.
Why do we need it?
Social policy and economic policy need to work in tandem, especially when it comes to tackling big issues like unemployment. Here are just some of the benefits of Basic Income:
- Basic Income tackles extreme financial poverty, enabling everyone to maintain a decent standard of living.
- It’s fairer than the current benefits system we have in the UK. Not only would Basic Income combat benefit fraud, it would also cut the administration and bureaucracy involved in the in current system, making social security much simpler.
- It increases the value of work. By providing a safety net, people would be able to work the jobs that they want and the hours that suit them without having to worry about sacrificing income. Basic Income can also be seen as rewarding unpaid work like volunteering.
- Basic Income also makes working safer. Employees can negotiate better working terms and speak up about poor or unsafe conditions without fear of losing income.
How is it paid for?
If the Basic Income system were introduced, other social support systems, like the current benefits system and tax relief for the poor, would become irrelevant and be abolished. Those savings would cover part of the cost, some have estimated up to as much as a third. Higher taxation would be needed to fund the rest, most of which would come from commercial activity, for example more corporation tax and higher taxes on luxury goods, as well as cracking down on tax dodging.
Basic Income may not be easy to implement initially, as it does represent and require a different kind of economy but the system would make significant savings on the welfare bill and revitalise our attitude to work.
For more info about Basic Income, check out the Basic Income Earth Network website.
