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Daily Mirror
Daily Mirror
Business
Levi Winchester

People in England could be given £1,600 a month under new 'basic income' trial

A group of people could be paid £1,600 a month under the first trial of a universal basic income scheme in England.

Thirty participants could receive the lump sum without any conditions attached to see how it affects their physical and mental health.

The candidates will be chosen from two places: 15 people in central Jarrow, in north-east England, and 15 people in East Finchley, in north London.

Anyone can put themselves forward with each person to be randomly selected, although 20% of places allocated will go to people with disabilities.

The plan is being proposed by researchers from think tank Autonomy, who are looking to launch a two-year pilot programme.

Those in favour of the scheme argue that universal basic income can help tackle poverty, while critics have suggested it will be too costly.

Autonomy estimates the basic income payments will come to £1.15million over two years, while there would be further costs of about £500,000 for other elements such as evaluation and research.

The proposal is being supported by charity Big Local and Northumbria University and it follows two years worth of consultations.

A similar scheme is already being trialled in Wales for hundreds of young people who have just turned 18 and have been brought up in care.

Other countries including Iran, India, Canada and parts of the United States have also tested out similar trials.

Will Stronge, Director of Research at Autonomy, said: “A guaranteed Basic Income could be transformative for welfare in this country.

“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.”

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.”

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