A group of residents in South Tyneside could be paid £1,600 a month as part of a brand new trial - if funding is secured.
Jarrow could be one of two places which may test the impact of Universal Basic Income (UBI) on people's wellbeing and mental health.
But what is UBI and why has Jarrow been designated as one of the pilot locations? Below is everything you need to know about the proposal.
Read more: Jarrow residents could be given £1,600 per month in brand-new 'basic income' trial
What is Universal Based Income (UBI)?
Universal Basic Income (UBI) is a regular and unconditional cash payment to all individuals. It is designed to reduce poverty, enhance economic security and improve overall well-being.
How will the pilots work?
If funding is secured, 30 local residents (15 in each area) will be paid £1,600 a month for two years.
There will be no restriction as to what they can spend the money on and they would still be able to work to earn more money.
The aim of the trial is to find out how the UBI has impacted on their wellbeing and mental health.
Who is behind the pilots?
- Autonomy - an independent research organisation that focuses on tackling climate change, the future of work and economic planning.
- Basic Income Conversation - An initiative to promote the idea of UBI in the UK.
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."
- Big Local - a programme which enables residents in 150 areas to create lasting change in their communities.
- Researchers from Northumbria University
Matthew Johnson, who works for the university in Newcastle, is the lead researcher.
The 40-year-old said: "I think this is exciting for the North East. For too long we have been subject to Government policy imposed upon us as a region. I think that the current system is unsustainable. It's unfair to workers.
"Universal based income is a policy for workers and people that want to get ahead. It corrects the unfairness of the current system."
Why has Jarrow been designated as one of the pilot locations?
Jarrow is classed as an area of deprivation. Its industries have closed and the majority of homes are social housing.
The town is one of the 150 communities which are described as being "left behind" are supported by Big Local.
The Big Local programme is a resident-led, long-term funding programme supported by Local Trust to improve their communities.
Anne Corrigan, project coordinator at Big Local Jarrow, said residents in the town have been having conversations about UBI since the lockdown in 2020 - three years ago.
They said funding was made available to secure researchers from Northumbria University and the proposal has now been made into a detailed plan by think tank Autonomy.
Anne, 60, said: "The trial will show the impact which it has on people's health and wellbeing and the knock on effect that it could have on the community and those around them.
"We'd like to think that it would then be used to inform policy either locally or nationally or both."
Which other place may take part in the trial?
The other community which may take part in the pilot is Grange in East Finchley, London. In Grange, 56% of people are in the most deprived 20% of neighbourhoods by income in London.
Grange is also part of the Big Local programme. Big Local Jarrow and Big Local Grange have shown the most interest in the pilot.
Matt Leach, CEO of Local Trust, said: "This is a very exciting initiative developed by Central Jarrow and Grange Big Locals, the Basic Income Conversation and Northumbria University which could provide a model for other universal basic income schemes across the country."
Will the pilots be the first in England?
Yes they would be the first ever Universal Basic Income (UBI) pilots in England.
In Wales, a basic income trial has been backed by the Government and is currently underway. Around 500 young people leaving care are receiving £1,600 a month.
Who can take part in the pilots?
Anyone living in Jarrow can put themselves forward, and each candidate will be randomly selected.
They are looking for residents of all ages and backgrounds.
20 percent of all places allocated will go to people considered to have disabilities.
When would the pilots take place?
There is currently no date for this at the moment. This is because £1.6 million in funding needs to be secured in order to get the pilots off the ground.
How much will the pilots cost?
Autonomy estimates that the basic income payments will amount to £1.15million over a two year span, with further costs in the region of £500,000 for elements like evaluation and research.
What has the reaction been so far?
Those favouring the scheme argue that a universal basic income will help tackle poverty across the board - but critics have countered that it will be too costly.
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