Universal Basic Income (UBI) has many attractions as a policy. It is radical, an easy concept to explain and – depending how it is implemented – may be progressive.
Both our leadership candidates are backing it. Neither has been as specific as they could and should be about what they are proposing. There is enough economic analysis available for it to be perfectly feasible for them both to be more specific.
The fundamental question is whether we can afford a level of UBI which is worth having and does not create lots of losers, particularly at the bottom end of the income distribution if means tested benefits are withdrawn or modified.
On the economics, our candidates refer mainly to analysis completed by Compass, a think tank promoting UBI. This is the most detailed recent economic work that is publicly available on a UBI for the UK. The work has some gaps (which it acknowledges) but it does us a big service by showing the relationships between costs and benefits, and by considering properly how different income groups are affected.
It is not honest to say blandly that the Compass analysis shows that ‘UBI works’. But it does show what the constraints are, and means our candidates could say more precisely what they are proposing.










