30th September 2025
What is a ‘universal basic income’? What are its benefits?
A universal basic income is a social welfare payment paid to all citizens with either a means test or a requirement to complete any sort of work. As a full basic income, it should be sufficient to cover basic needs. (That said, some people with specific needs might need a higher rate to cover their living costs – eg if they were disabled and needed additional support or equipment).
The idea behind the UBI is that everyone in that society will have enough to live on – is that lower limited of the economic doughnut will have been secured. It allows some people to pursue voluntary work – caring for the young or the elderly, working on conservation projects etc. It allows people to take jobs with low pay – such as artists and cleaners – but might there be an argument here to say such jobs should be better paid even if that means higher prices or higher rates. It allows people with stressful jobs to work shorter hours and spend more time relaxing. It ensures security of income for people whose work is seasonal – fruit picking, local tourism etc.
There are clear benefits to society as a whole – the population will be healthier both physically and mentally. This is good in itself. It means people can work better. It reduces costs for health care. It can increase sales of non luxury goods as more people have the money to spend on essentials. Evidence from small scale trials suggests that with the UBI safety net people spend time finding a job they like and are suited to and then become more reliable committed workers.
Perhaps more importantly it allows people to feel valued and be happy and fulfilled.
“Humans need to do work that feels valuable, psychologically,” says Cleo Goodman, a UBI expert at the thinktank Autonomy. “It’s baked into us. It is complete nonsense to suggest that there’s a faction of society that just wants to sit around on the sofa all day, drinking beer and watching TV. We want to spend a fair amount of our time doing something that makes us proud.” (1)
Some people do argue that UBI would lead to people avoiding work, or not working as hard, big I wonder if that would be so? When we are children, everyone asks what do you want to be when you grow up? Getting a job or a role that you want, a job that you will enjoy, is seen as a sensible and worthwhile objective and one which motivates us. For many of us, the jobs we choose are vocational: we choose them not because of the financial reward but because we would not be happy doing anything else.
The Green Tau 