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Daily Mirror
Daily Mirror
Business
James Andrews

Universal basic income makes people more likely to find work

A new report into how universal basic income works in the real world has found people on it are more likely to find work than if they stay on traditional benefits.

The findings come from an analysis of what happened when Finland ran a two-year, nationwide, experiment into the new system.

Looking into people already in receipt of state support, one group was randomly selected to be paid benefits worth £490 a month with no conditions attached, while another was left on the old system.

The results were eye-opening.

Not only was the group receiving universal basic income found to be happier and more secure than the ones on traditional benefits, they were also more likely to have found work.

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Making benefits conditional might actually prove counter-productive (Getty Images Europe)

"The basic income was paid to the experimental group for two years free of charge, and the income from employment or entrepreneurship did not reduce the benefit," the new report reads.

"The employment of the subjects increased on average by 6 days more during the one-year assessment period than in the comparison group," it adds.

And that's before we get onto the other benefits of a no-strings-attached payment.

Finland decided to find out if it worked (REUTERS)

"The well-being of basic income recipients was better than comparisons," the report reads.

"Better opportunities for social participation and increased autonomy were highlighted regardless of changes in one’s own employment."

Finland isn't the only country thinking about introducing the radical benefits change.

Canada has also experimented with the idea, while in the UK Scotland has been exploring it for several years.

The Scottish Basic Income Steering Group was set up in 2017 to assess whether it was feasible in the country - and the consultation will end this year.

The Labour Party said it planned to trial the scheme in Liverpool and Sheffield if it won power in 2019, while the Green Party straight-up committed to introducing it in its manifesto.

One of the principal arguments against it has always been that it will make people less likely to try and find work, this new report from Finland - based on what happens in the real world, rather than debating chamber - seems to put that argument firmly to bed.

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