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Wales Online
Wales Online
National
David Bentley & Brett Gibbons

Calls for basic income payment to replace Universal Credit emerge again - here's the DWP response

Demands for a Universal Basic Income - a Government payout for every citizen - have re-emerged during the coronavirus pandemic.

The Universal Basic Income (UBI) scheme was suggested by opposition parties in the run-up to the General Election in 2019, but calls for the benefits change have resurfaced.

The Labour Party suggested giving a weekly payment of £89 for everyone - regardless of employment status - to replace the current benefits system. Plans to trial a UBI in Hull were also dashed, reports BirminghamLive.

Since then, coronavirus and the restrictions introduced to control its spread have taken a huge toll on Britain's economy.

MPs have again been asking for a UBI to help hard-hit households get back on their feet.

Neil Grey, Scottish National Party MP for Airdrie and Shotts, said the UK Government was opting for "bureaucratic support schemes instead of a far simpler universal basic payment with a longer view towards universal basic income."

While Stephen Farry, Alliance MP for North Down, and Beth Winter, Labour MP for Cynon Valley, have also called for a UBI payment.

However, Therese Coffey, Secretary of State for Work and Pensions, responded by telling MPs: "There is a variety of analysis on universal basic income. The latest report I saw estimated it would cost over £400 billion a year.

"It is not targeted at the poorest in society and is not an appropriate way for us to try to distribute money. Instead, our schemes are focused on making sure that the poorest do get help."

Meanwhile, Spain is to become the first European country to bring in a basic income.

The Spanish government says up to a million families would receive the new benefit, expected to cost up to 3.5 billion euros a year.

The amount of money each eligible family receives will be adjusted according to their household income and assets, Business Insider reported.

The launch of the initiative was speeded up by the impact of the coronavirus pandemic.

A recent article in The Church Times also argued that UBI should be introduced as part of Britain's recovery from coronavirus.

Third Church Estates Commissioner Dr Eve Poole wrote: "Looking forward to a post-Covid, post-Brexit Britain, the future looks bleak for the financially vu­ln­er­able. Even the less vulnerable may now be cautious about post-lockdown spending, just when the economy most needs a boost.

"My proposal is for the UK gov­­­­­ernment to introduce a year of universal basic income (UBI), which would provide both cushion and spending power.

"Those who do not need it should be invited to do­­nate it to a charity of their choos­ing, because charities in the UK are suf­fer­ing unprecedented falls in in­­come, and many are set to close."

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