What Would the Proposed Basic Income Pilot in Greater Manchester Mean for the UK?
The UBI Lab Network, Northumbria University and the Common Sense Policy Group have launched a pilot proposal for a Basic Income pilot in Greater Manchester. Mayor Andy Burnham has repeatedly shown support for a Basic Income pilot in the region. However, the Greater Manchester Combined Authority would require either central government or private funds to commence the pilot. This makes testing the idea difficult.
But if we are to find alternative ways to tackle poverty, we need to be able to test ideas like UBI efficiently and effectively.
What would a (Universal) Basic Income (UBI) pilot mean for Greater Manchester and the rest of the country? What is its role in tackling poverty? UBI would provide every individual an unconditional and regular cash payment to cover necessities. UBI is not just a safety net, it is a springboard to build a stable life because with additional income comes less stress and more time to take opportunities and be innovative.
UBI has gained popularity since the COVID-19 pandemic started in 2020. There have been roughly 160 Basic Income pilots across the world with dozens happening in the USA. In the USA, pilots have shown that unconditional and regular cash payments increase employment, financial well-being, housing and food security, mental health and make care much easier. In Kenya, the largest and longest UBI trial in the world has shown people are more productive, can save more money, start more businesses and have better mental health.
The benefits of UBI are clear- individuals are happier, more productive and financially secure. Economist Karl Widerquist found that a UBI could significantly reduce poverty. For example, UK families with incomes below the official poverty line would drop from 16% to 4% and poverty among children and the elderly would all but disappear. Greater Manchester has a very high rate of homelessness and reducing it significantly is a key ambition of Mayor Andy Burnham. Innovative ideas, such as Housing First and Youth Homelessness Pathfinders Prevention scheme combined with a UBI would be extremely effective in tackling homelessness.
To tackle poverty we need to understand that poverty is predominantly a lack of cash. Without a Basic Income, there is no universal right to live a decent life. A UBI provides a stable income floor for everyone. However, it does not significantly reduce employment because it still requires individuals to work for a truly stable life. Instead, it allows individuals to spend more time doing important things that are not paid for, such as caring for children or relatives. A UBI Plus would provide extra support for those who need it, such as single mothers.
Many agree that a UBI is effective, but argue it's too expensive. This is probably the hardest point to discuss because it requires changing the way we think of the national economy as similar to a household. There are many points to be made on this here. But by far the most important is that a UBI would cut costs significantly in the long term because it requires looking at issues holistically. For example, the Denver Basic Income Project found that public spending would be reduced because of fewer visits to hospitals and jails. There was also a sharp reduction in homelessness. Tackling poverty means we will lower public spending. This is backed by research from Northumbria University, on modelling that shows a UBI would cut costs for the NHS.
But a UBI will only be effective if it is part of a larger vision for creating greater respect for human dignity. To live a dignified life, we need affordable housing, communities of care, worker-owned cooperatives, affordable and efficient public transport, community centres and free and effective health services. This requires changing how we do politics, moving from a focus on scandal and despair to talking about ideas that can provide us with hope for a better future.
There is only one Basic Income pilot in the UK, targeting young care leavers in Wales. We have global evidence that a UBI significantly reduces poverty without reducing employment and that it can restore trust in politics is there. But, we need to test this idea in innovative ways and in different communities to understand the best ways to implement it. Testing ideas like UBI will show what a better society for all could be like providing hope that things can get better.
