In his recent piece HERE George Kendall asks us which Universal Basic Income proposal we should choose and how can we say if it’s affordable? How should UBI advocates respond?
What I intend to do here is set out how I believe we should assess each UBI proposal that comes our way; however, the first step is to accept the principle of UBI at conference and acknowledge it needs to be a high enough amount to live on. My conclusion will be that an “out of the box” proposal like that from Compass is actually just fine but that Lib Dems should debate several options once we’ve accepted the principle.
What makes costing UBI complicated is that normally governments take in tax revenue and spend it in return for some particular thing. For example we might decide to spend another £100 billion on the NHS and we must decide if that thing, i.e. the extra NHS services we get as a result, are worth the cost, the £100 billion. UBI isn’t like that. In UBI the government takes in, say, £500 billion and then hands out that same £500 billion. We don’t get a product or service and most of us get some amount of the cash we paid in back as… well… cash.
If I hand you £100 and you then hand me £100 I’m not £100 worse off am I? If I hand you £100 and you give me £80 I’m not £100 worse off, I’m £20 worse off. That’s very different from spending £100 and then getting a mobile phone. Is the phone worth £100? Can you get a good phone for £100? Those questions don’t make sense with UBI in the way they do with healthcare.
Instead what we are “purchasing” is a guarantee of no poverty for any UK citizen and the cost is not the whole tax bill but instead it is any loss of incentives to work and any inflation that may result. This is where evidence really matters! We are an evidence based party so lets consider the evidence.






