Universal basic income scheme to be tested in Wales

George McKay

Every adult will receive a regular sum of cash under the scheme

A universal basic income scheme (UBI) is set to be trialled in Wales, which will see adults across the nation receive a sum of cash regardless of their financial situation.

The idea, long touted by the left amid concerns of automation and an ageing population, is that the basic costs of living would be covered by the scheme, leaving more disposable income to be injected into the economy and generally raising the standard of living of those under the scheme.

First Minister Mark Drakeford said the pilot would “see whether the promises that basic income holds out are genuinely delivered”.

However, the Tories have criticised the plans, and said that Wales should not become ‘a petri dish’ for left-wing experimentation in policy.

Mr Drakeford has said that the pilot would need to be “designed to make sure that it is genuinely adding income for the group of people we are able to work with,” the BBC reports.

He said:

It’ll have to be a pilot because we don’t have all the powers in our own hands to do it on our own.

It’ll have to be carefully crafted to make sure that it is affordable and that it does it within the powers available to the Senedd.

We need to make an early start on designing the pilot to make sure that we have the best chance of operating a pilot that allows us to draw the conclusions from it that we would all want to see.

The idea, once seen as a fringe idea reserved only for utopian idealists or radical thinkers, has enjoyed a surge in interest in recent years, and celebrity proponents of the idea like Elon Musk have only increased its popularity.

Labour’s 2019 general election manifesto also promised an exploration of UBI more widely in the UK.

Other schemes around the world with similar concepts include in Finland, where unemployed people were paid the equivalent of around £500 per month for two years.

Results showed the participants reported being less stressed and more happy, though the scheme did not aid in them finding work.

Wales’ future generations commissioner, Sophie Howe, has called for a pilot previously.

She said:

Signalling basic income as a priority for the new government is an incredibly significant commitment by the first minister to tackling Wales’ poverty and health inequalities – which cause lasting damage to the health and prospects of individuals, families and communities.

It’s a huge moment for the campaign, which I’ve been proud to be a part of, and the growing support for a fairer way of allowing people to meet their basic needs.

The current system isn’t working – Wales’ commitment to exploring a basic income once again proves it’s often the small countries that can be world leading and make the biggest changes.