Universal Basic Income

Universal Basic Income (UBI) is a social policy concept that proposes providing all citizens with a regular, unconditional sum of money regardless of their employment status, income level, or any other conditions. 

The core idea behind UBI is to ensure a basic standard of living for everyone, aiming to reduce poverty and economic inequality while promoting financial security and freedom. Unlike traditional welfare programmes, which often come with various eligibility criteria and bureaucratic processes, UBI is straightforward and universal, designed to simplify the welfare system and provide a reliable and more equitable distribution of wealth to all individuals. 

The concept of UBI has historical roots dating back to the Enlightenment, with early proponents like Thomas Paine advocating for a form of basic income to ensure economic justice. However, interest in UBI has surged in recent decades due to several socio-economic factors such as income inequality and inadequacies of existing social safety nets. 

UBI experiments and pilot programmes have been conducted around the world. For instance, a UBI trial in Finland involved giving 2,000 unemployed individuals a monthly stipend, which resulted in improved mental health and wellbeing, though it did not significantly increase employment rates. Another example is the long-term UBI experiment in Kenya conducted by a charity (GiveDirectly), which has been providing unconditional cash transfers to villagers. The results from Kenya have shown positive impacts on health, education, and economic activity, with recipients reporting increased financial stability and a better quality of life. In Stockton, California, a pilot programme that provided monthly payments to residents led to enhanced financial security, reduced stress, and greater job flexibility, demonstrating the potential of UBI to improve personal wellbeing and economic resilience. Guaranteed income pilots in the US following the COVID pandemic have reported better outcomes for children because the stress and trauma families experience while living in poverty were reduced. 

UBI can be funded through various means, including taxes on wealth, financial transactions, or carbon emissions, and it would streamline welfare systems, reduce administrative costs, and empower individuals to pursue education, entrepreneurship, and creative endeavours without the constant pressure of economic insecurity.