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National
Daniel Milligan

UK on 'the brink' of replacing Universal Credit - how it will affect you

The UK is believed to be "at the brink" of experimenting with a new Universal Basic Income to replace all benefits.

Such a scheme would wipe out poverty, claim campaigners, and would replace the controversial Universal Credit.

The RSA charity says introducing a new Universal Basic Income would see an immediate end to child destitution.

And when fully rolled out it would put a stop to all poverty, it says.

The Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA) is urging the Scottish Government to scrap sanction-led employment benefits and lead the way by launching the UK's first basic income.

It says Scotland is "at the brink" of being first in the UK to try out a Universal Basic Income.

How would it work?

The RSA wants an initial basic income of £2,400 a year to be paid to every adult and £1,500 to every child.

The payments for adults would eventually be doubled to £4,800 each - that's £400 a month per person.

Everyone would get the money, regardless of whether they were working or not.

Would you be entitled to other benefits?

It's unclear at this stage if any additional financial support would still be available - such as to help unemployed single people who couldn't manage rent, bills and living costs with just one basic income of £400 a month.

Its report found "child destitution would vanish almost immediately" if an initial basic income was introduced, and if it reached the full £4,800 it could "completely eliminate destitution in Scotland".

What scenarios have been put forward?

Scotland is considering piloting basic income schemes in four cities, including Glasgow and Edinburgh.

Three scenarios were modelled in the RSA's report - the status quo; a £2,400 per adult basic income; and the full basic income of £4,800.

It found the full basic income would be the most fiscally progressive but cost the most at 3.5 per cent of Scotland's GDP, while the partial basic income is proportionately easier to fund due to the removal of the tax allowance, costing 1.2 per cent of GDP.

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