Economy & welfare

"We can't afford it"

The usual argument against BI is that we couldn't afford it, but that is because people assume that the whole of a Basic Income would have to be paid to each person, and also because they assume it will continue to be partnered with a "progressive" taxation system roughly similar to what we have now.

The BI should include a component for housing. This would be a standardised amount across the country, regardless of different housing costs in different areas, to try to counter the inflationary effect of the gravitational pull of metropolitan areas.

After they have achieved the necessary educational standard and gained control of their BI, young adults wishing to stay in education (academic or vocational) can use the part of their BI that is earmarked for education to contribute to the ongoing costs.

A small proportion (£100?) of each parent's BI should be earmarked as dedicated to the upkeep of each child.

If a child is taken into care, or moved from the care of one parent to another, not only should the child's BI transfer to the carer, but that small proportion of the failing parent's BI should too.

In the months after birth, the child's BI could be used by the parent/carer towards the cost of childcare (for instance if both parents return to work), or for supplementary income and support (for those who decide to quit work to bring up the child), or to pay employers to keep a job open (for those wanting temporary leave for the first few months).

We estimate that, without the changes that require some uplift, the Basic Income (BI) rates would have to have been set at around £5,000 per person per year, plus a £1,750/year single-person supplement, to roughly match those parts of the current welfare system that the BI is replacing.

Most of our proposals under the various policy headings have impacts on the economy, individual wellbeing, and the government budget. We are confident that the net effect is a significant benefit to the economy and reduction in the bureaucratic overhead, relative not only to the current hole we are in, but also to the insufficient and often counterproductive proposals of the mainstream parties.