Tag Archives: universal basic income

How to make a just society – Justice Capitalism then UBI

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UBI (Universal or Unconditional Basic Income) is a brilliant idea. A majority of people support it. Let’s implement it worldwide. But to pay for it, we first must enact Justice Capitalism, that is, Capitalism that is fair, equal, and balanced for everyone.

But how will UBI be funded? The Tax system is broken and cannot be fixed to pay for UBI. Governments have been trying to fix the tax code forever, but it just gets more complicated with more and more loopholes. Corporations, criminals, corrupt politicians, and the 1%, hide money in Tax Havens or they game the tax rules to pay little or no taxes. Actions such as tax increases and eliminating tax havens will contribute to funding UBI but this will not be enough for the long term. Printing money, as is happening now, is also not a good solution to fund UBI as it just creates inflation which has too many negative consequences.

The best way to fund UBI is by Justice Capitalism.

The money should not come from taxation, but a dividend, financed from the returns on all our human capital; a “public” percentage of companies’ profits. Also, we will eliminate tax havens and the estimated $32 trillion hidden there. We will institute a tax on extreme wealth, a speculation tax (i.e HFT High-Frequency Trading), and a robot tax on firms that eliminate jobs by AI/automation. With this start to funding UBI, we will implement it.

Watch economist and former Greek Finance Minister @yanisvaroufakis explain it in a 4-minute video: #JusticeCapThenUBI

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The social justice argument for a Universal Basic Income

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Recently, there has been much discussion regarding the desirability of a Universal Basic Income. Arguments used to justify it range from providing security, to alleviating poverty, to increasing freedom, to nurturing a sense of social cohesion. However, one of the most persuasive arguments is that based on justice: on each getting what is their due.

Historically, liberals have tended to be most familiar with, and sympathetic to, John Locke’s justification of property ownership. For Locke, the world initially belonged to everyone, but by individuals mixing their labour with land they came to own it (the possibility that such individuals should simply lose their labour seems not to have occurred to Locke). As long as those who do not possess land, including their descendants, are better off than they would have otherwise been (those who, for example, own no land and work the land of others have, Lockeans would suggest, avoided the ‘tragedy of the commons’ and are thus better off) then the distribution of property, including to later generations via inheritance or sale, is justified.

However, another liberal tradition, one we might call a ‘left-libertarian’ one, and including Henry George, a proponent of a Land Valuation Tax, takes a different view. The world was, and remains, commonly owned; we are all joint heirs to the world. For the left-libertarian, those who claimed ownership of land deprived the community of its assets and, as a result, those who benefit from land ownership today, whether by inheritance or sale, may be likened to the recipients of stolen goods; the passage of time does not turn a wrong into a right. As the Victorian thinker Herbert Spencer wrote in 1851, “The original deeds were written with the sword, rather than with the pen: not lawyers, but soldiers, were the conveyancers: blows were the current coin given in payment; and for seals, blood was used in preference to wax” (Spencer would later adopt a much more conservative attitude towards land ownership; some time ago I purchased a letter by Spencer in which he made clear his refusal to permit the republication of the above and other similarly offending passages). Essentially, for such left-libertarians, much wealth today rests on illegitimate grounds.

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In debating UBI, we need to be clear what we’re talking about

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In Stephen O’Brien’s recent post on this website entitled “Why we shouldn’t just jump on the UBI bandwagon”, he makes a series of points in opposition to a Universal Basic Income (UBI). The difficulty with his criticisms is that he argues against a version of UBI almost nobody is proposing. If we are to have a constructive discussion about UBI as a party, we need to make sure that both supporters and detractors are talking about the same thing.

First, the £830-a-month proposal Stephen critiques appears to be plucked out of nowhere. There has been no substantive proposal along these lines made. If we were to agree on the principle of UBI, we would of course need to work out precisely how it would work and the exact level it would be set at. In order to be a “basic” income, however, it is likely that it would need to be higher than this, neutralising any objection that Universal Credit currently provides more than UBI would.

Stephen also makes an assumption that UBI would totally replace all existing welfare benefits full stop. So, in the example he sets up to criticise UBI, he implies that it would abolish all disability benefits. This is a proposal I have never heard being made by anyone who supports the policy. Almost all its major supporters agree that there would have to be uplifts for those with disabilities, and in other categories. Nobody would lose out.

In general, it should be noted that the primary point of UBI is to eradicate economic insecurity. A key cause of economic insecurity is the waiting period for welfare payments, inherent in our current system: the Trussell Trust views it as the reason for a significant proportion of food bank usage, for example. This delay is an in-built feature of the current welfare system, and other programmes like a negative income tax (NIT). UBI abolishes it entirely by giving all people unconditional payments. Under it, nobody ever has to wait to be assessed and processed when they suddenly fall on hard times.

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Why we shouldn’t just jump on the UBI bandwagon

While debating other liberals about Universal Basic Income (UBI) it occurred to me that UBI isn’t a voter winner, certainly outside of London. Nor is it actually workable.

One policy, suggested on Lib Dem Voice by Darren Martin, was to pay a £830 Univeral Basic Income to each citizen age 15 and over. This would be an increase to average incomes for those aged 15-24, but when you study the policy closer you begin to see huge faults with it.

This policy would actually have a negative impact on those aged 25 and over who claim some support at the …

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LibLink: Alistair Carmichael: It’s now time to consider a Universal Basic Income

Last week, Alistair Carmichael wrote an article for the Herald calling for a Universal Basic Income to be considered as a key part of the strategy for an economic recovery.

He cites practical examples of the people who are falling through the Government’s various support plans:

Thousands of families will face financial hardship in this crisis due to the current gaps in Government support.  The small building firm in Shetland that I have been trying to help in recent weeks illustrates the problem well. It is owned by the two men who started it and runs as a limited company.  The owners take most of their income though dividends. Their four employees have been furloughed and their position ought to be secure.  As things stand, however, there is no adequate help for the two owners of the business. The purpose of the furlough scheme is to protect jobs now for when productive work restarts.  Unless we find a way of helping these business owners, and thousands like them, there will be no business to which the employees can return.

While he is not yet totally convinced by UBI as a long term strategy, he thinks it needs to be properly considered as a way to remedy inequality – and says that the State Pension is essentially a form of UBI for older people:

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Universal Basic Income, why now?

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We are currently in the midst of an unwanted sociological experiment.

Society is reliant on its citizens being responsive to the current restrictions in a way that cannot realistically be enforced by coercion.

The lessons to be drawn can offer us significant hope. A hope that, as a counsellor working in mental health, I have always had. It is a hope in the possibility of the majority to find a way to do the best for themselves and others.

An army of volunteers have been found. Neighbours are mostly, neighbourly. Politicians have asked that citizens be trusted to pay their part in the current challenges and we have not been found wanting. (Apart from my own glass recycling, I include myself in this). In the counselling room I see that the human spirit has both conscience and drive, often in the face of appalling experiences.  Daily I see people trying to find a way to become the person they want to be, across all social groups, often hampered by shame of circumstance.

The radical idea of Universal benefit has been floated by economists and idealists since Tudor England and the writings of Thomas Payne, but those holding the mindset of the poorhouse have never trusted that “handouts’  wouldn’t create a culture of workshy reliance.

The truest form of Universal Basic Income (UBI) provides a base to all via the income tax code. It could equalise the starting point of income for all at a basic minimum. Zero income means a negative tax rate (a credit)  but it is not about making all equal, although less inequality is inevitable.

UBI is and should be seen as the provision of stability.

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Rennie calls for UBI summit to help those who can’t get government support

Scottish Liberal Democrat leader Willie Rennie has today called for an intergovernmental summit on a universal basic income to take place to ensure that support is urgently made available for those who have fallen through cracks of the current furlough and income support measures.

He highlighted the plight of self-employed workers who were not trading for the entirety of the last tax year, PAYE freelancers,  self-employed workers who are paid in dividends, people who work from home and those who have recently changed jobs as examples of people who have experienced a sudden and dramatic loss of income as well as those struggling to access existing anti-poverty measures.

Across the UK, the Institute for Fiscal Studies estimate that roughly 675,000 people will be ineligible for the government’s Self-Employed Income Support Scheme, which mirrors the 80% wage subsidy scheme for the employed.

The IFS says another 1.3 million people with some self-employment income are likely to be ineligible because they received less than half of their income from self-employment last year.

His call comes as the The Poverty Alliance, Scotland’s anti-poverty network, has identified a number of shortcomings in the current crisis responses, including a lack of targeted social security support for families with children at either the UK or Scottish level, limited access to community care grants and gaps in employment protection programmes.

Willie said:

I fully understood and supported the decision to use the existing tax and spend apparatus to help people financially. Time was short and we needed to act fast. Now that those schemes are getting into place we need to take the next steps.

With economic uncertainty destined to loom for the foreseeable future, we need to ensure that everyone can afford to keep a roof over their head and a meal on the table.

We should be adopting the principles of a universal basic income: no one should be left behind. The UK Government has acted swiftly to back businesses and support furloughed workers but too many are slipping through the cracks and there’s a real risk that furloughed staff will lose their jobs when the current scheme ends.

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Jane Dodds writes: No going back to business as usual

Covid-19 has caused the biggest economic shock of modern times. The Government has announced a range of measures to support businesses and the self-employed, in particular through putting in place strong incentives to keep staff on the payroll. Nearly a million people applied for Universal Credit in March – and the Welsh Liberal Democrats have called for the Government to scrap the five-week wait.  We need to get money into people’s pockets now. 

But we need to think beyond the emergency. Economic recovery could be slow and painful, and the most difficult time for families and businesses – especially the small businesses in the economic front line – may be when the lockdown is over and the short-term, time-limited measures announced by the Treasury fall away. Our family businesses are at the heart of our communities, and we need to ensure they bounce back stronger and more resilient than before. These shops and businesses will only recover if their customers have money to spend once the lockdown ends.

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A market-driven approach to Universal Basic Income

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By now most Liberals are convinced of the moral impetus to eradicate poverty, and many are now realizing that the easiest way to resolve this is to “give people money”. Slowly, we are detaching ourselves from the idea that people should be forced to work in exchange for their rights – and waking up to the need to meet Socialist means for providing Social Security (large, state-driven delivery models) with a Liberal alternative.

A Universal Basic Income is not a panacea, but it’s a surprisingly useful tool for delivering both Liberal outcomes and meeting our Human Rights obligations. And with a market-driven approach, we can embed it in society, free of the partisan nature of British Politics.

Step 1: Create a National Basic Income Fund. This is important – it’s tempting to break up the fund, but you’ll see later why that will create problems. Model it on the Norwegian sovereign wealth funds, or base it on the UK National Insurance Fund. I don’t mind; this sounds like something other people would enjoy arguing about. Just create it.

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The compelling case for a national Universal Basic Income trial

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Coronavirus has lifted the lid on the prevalence of financial insecurity in this UK. For many, there is no safety net in place for times of crisis. So, now more than ever, we need progressive, forward-thinking solutions to help people cope.

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Jane Dodds writes: Why UBI is the only way forward

Over the past few weeks, we’ve seen the spread of Corona Virus continue at a frightening pace. Countries around the world are taking increasingly more authoritarian steps to try and contain the spread before it is too late to stop it.

A consequence of this has been millions of people left in limbo, unsure of what they’re going to do as the lockdown increases. Across the UK schools have closed and many businesses are slowly shutting down due to concerns over staff/customer safety and lack of custom.

But as the UK grinds to a halt, people’s lives simply do not stop. People still have bills coming in, they still have a mortgage/rent to pay and they still need to be able to put food on their table. However, for many even funding these bare essentials will be difficult.

Many small and independent shops are having to lay off staff or close outright, this means for many thousands of people their source of income and livelihood disappears overnight. I welcome the recent moves by the UK, Scottish and Welsh Governments to support small businesses, but they simply haven’t gone far enough to support people themselves.

So, what happens if you lose your job due to Covid-19? You’re either forced to try and find a new job very quickly (almost impossible given the economic standstill) or apply for Universal Credit.

Universal Credit is an abhorrent system, one which lacks any compassion or grounding in reality. How is someone supposed to go five weeks without any support? How are they supposed to feed their families and keep up with their bills on just £80 a week?

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Why the Lib Dems need to lead the charge for #EmergencyUBI

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Here in Hull, where I’m a Liberal Democrat Councillor, I was proud that in January we moved a motion that, with unanimous support called on the Government to run the first UK pilot of Universal Basic Income (UBI). This would see every person receive a fixed amount of money to free them from financial insecurity – protecting the most vulnerable in society.

It’s safe to say much has changed since January, but the issue of Universal Basic Income is more important than ever before. The Corvid-19 virus has plunged our nation into chaos and shown how financial insecurity through the nation is rife. We have a duty as a progressive party that champions freedom to act.

I was delighted that one of our leadership hopefuls Layla Moran backed our cause in Hull to the hills and even more so that she has recently written to the Government calling for an emergency UBI.

Liberal Democrats up and down the country should be championing this policy especially given its clear advantages in times of crisis.

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This week, fight for our values on social security 

As we enter one last push before the election, it’s important to remember why we’re doing this. It’s tempting to clamp down into an unhelpful, wearying “shut up and deliver leaflets” mode, but really the best way to get motivated and to motivate others in politics is to have something to fight for. For me, the Liberal Democrats’ social security policies are exactly such a motivator.

A good safety net that liberates people from poverty and the threat of income insecurity is an absolutely crucial part of a liberal society. One of the reasons why coalition-era cuts in this area were so damaging for us as a party is that it jarred strongly with our natural position fighting for a society that supports and enables and empowers people. As liberals, we believe in people being supported to choose their own paths in life, and few things disempower people like time and energy and health being absorbed by a lack of good living standards. Fortunately, five years on, we’ve responded to that challenge, and are now exactly where we should be, leading the two main parties in having the most progressive welfare system plans on offer according to a Resolution Foundation analysis.

First, we have a plan to fix the system so it’s fit for purpose. Our root and branch reforms to Universal Credit, reducing the waiting time from weeks to days and scrapping the two child cap and bedroom tax, would rapidly and significantly improve people’s lives. Simply spending more on raw benefit levels is also urgently needed, and something that our Liberal Democrat MPs will fight for in the next parliament.  Since 2016 we’ve also been committed to the even bigger step of abolishing the benefit sanctions system: it is unconscionable, no matter what the circumstances are, that people should be left with insufficient income to live on. 

One area we’ve talked about less, nestling among the wide constellation of official Lib Dem policies not explicitly mentioned in the manifesto, is the longer term future of the system. As of Autumn Conference, our long term plan is to pilot turning the standard element of UC into a guaranteed minimum income, removing all claiming conditions other than income level. This is a natural evolution of policy from the abolition of sanctions, and also fits with our policies on lifelong learning and providing living cost support for startup businesses: by piloting an unconditional minimum, we will be looking towards having a single, streamlined system that will provide people with new opportunities, as well as giving people the stability they need to take care of themselves and those around them.

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Can the Greens’ Universal Basic Income tackle poverty?

The Greens in this election are promising in their manifesto “a Universal Basic Income, paid to all UK residents to tackle poverty and give financial security to everyone”. They state that their Universal Basic Income (UBI) will replace the current benefits system. And they will phase it in over five years. The rates are £89 per week for working age adults, and £178 per week for pensioners. They will provide an unstated amount as a supplement for people with disabilities and lone parents. For families earning under £50,000 there will be £70 per week for each of the first two children and £50 for each additional child. However, it seems they are not paying Housing Benefit to new claimants once UBI has been introduced. Their manifesto states that they will, “Continue to pay Housing Benefit to those who received it before UBI was introduced, so that they can cover their rent (page 50).

For those in full time work the £89 a week is in fact only £40.92 a week because the Income Tax Personal Allowance of £12,500 would be scrapped.

They estimate the cost of the UBI, the supplements and free childcare at £86.2 billion. They state they will provide 35 hours of free childcare for all from the age of 9 months. This is more than we are promising because we are only providing free childcare for working parents for children aged 9 months to two years. This is estimated to cost £12.3 billion in 2024/25. Therefore the Greens are spending less than £73.9 billion to introduce their Universal Basic Income while abolishing Housing Benefit for new claimants.

The Greens benefit reforms will leave most people who would qualify for benefits today in poverty. Using the Joseph Rowntree Foundation’s figure in their
“UK Poverty 2018” updated by inflation for April 2019 the poverty levels excluding housing costs per week are:

Single person no children £157.62
Single person with two children £325.88
Couple with no children £271.58
Couple with two children £439.84

Turning to the Greens’ proposals these are what people would receive if not working:

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Don’t Despair!

To begin with a conclusion:

There is a final thought for collective reflection, reiterating a point made earlier. Conservative governments, and some previous Labour governments, have used the power of the state to control people’s lives – treating lower-income individuals and families as supplicants to be reformed or ‘sanctioned’. A progressive government should use the power of the state to empower people, to have agency and greater security and control over their own lives and an ability to forge communities of their own volition. A basic income would help in doing just that.

That is the conclusion to a very recent report by Professor Guy Standing, of the Progressive  Economic Forum, a foremost exponent and proponent of the idea of Universal Basic Income. And surely it exactly expresses what Lib Dems would wish to achieve somehow? THIS is how. And we should do it – and get on with it before we are left behind.

The Report (for Labour’s Shadow Chancellor) is very readable, and not at all clogged with percentages. It would be “transformative” – and that transformation would be more Liberal than socialist, I consider. I believe it could be implemented progressively in five years.

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Minimum income: From Finnish trial to Lib Dem policy?

The Finnish Basic Income experiment ended at the start of the year, and preliminary results have now been reported publicly. Certain sections of the press blared out that the trial, which paid 2000 unemployed people an unconditional €560/month income for two years, was a “failure” – but was it? It is true that the experiment did not lead to significant increases in the experiment group finding work, but should we be judging the success or failure of a benefits system solely by whether it pushes people into any job that can be found? Our values and policy as Liberal Democrats should lead us toward different analyses.

Looking at the results closely tells a different, important, and encouraging story from a liberal perspective. Despite those opposed to guaranteed incomes claiming that a basic income would lead to nobody wanting to work, the data shows no drop in work-seeking among Finland’s experiment group. The fact that there was no rise either suggests that marginal income effects may be less important in influencing work-seeking than some had imagined; a lack of suitable jobs and retraining opportunities is not something for which any social security system will provide magic bullets. Other potential positive economic effects of a guaranteed income are, however, likely to have been invisible in this sparse study – increasing the spending power of the worst off and building a labour market that can be more flexible in retraining are significant potential positives that would only be effectively visible at scale.

The most important results from Finland’s trial, in any case, are the effects on wellbeing. The experiment group reported lower stress levels and better health outcomes than their counterparts in the control group. This is where we should be getting excited about the possibilities of a minimum income – freeing people from the psychological strain caused by income insecurity, freeing people to make the most of opportunities and build stronger communities, freeing people to live happier lives. Not only that, but consider the strain on other public services, the NHS in particular, caused by health issues that are largely down to poverty. Taking steps towards eradicating those ills is both smart and compassionate politics.

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LibLink Jane Dodds: Why the Welsh Lib Dems want to trial Universal Basic Income in Wales

Welsh Lib Dem leader Jane Dodds supports the Universal Basic Income as a means to tackle poverty and inequality.

She explains why in an article for Nation Cymru:

In Wales, like the rest of the UK, we are seeing increasing homelessness and food bank use.

We need to look for progressive solutions and to continue to oppose government policies that demonise the poor.

One possible solution is Universal Basic Income (UBI), an idea that has been the subject of much debate across the political spectrum, including within my own party.

UBI is rooted in the idea that people seek purpose and, if given the opportunity and freedom to do so, will make the best decisions about their lives. As a Liberal I strongly believe everyone should be able to make decisions about their own lives and live a life they are proud of.

UBI would give people a guaranteed minimum income, giving them the freedom to live their lives and make decisions of their own free will, not on the basis of where their next paycheque comes from.

Opponents of UBI argue that it would damage economic growth and lead to fewer people in work, but I think this view underestimates people. Money is only one factor driving us to work and I suspect that most people would take the freedom UBI would give them to pursue the job they’ve always wanted to do, not quit work altogether.

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Looking beyond Brexit

The sense of things going horribly wrong is likely to get much worse as 2019 gets under way and #BrexitShambles becomes #BrexitFarce.

In the probable chaos of the coming months the country needs us to articulate our hope for the future.

Putting some flesh on those bones, in no particular order:

  • Improve Benefits. Universal Credit could have been a good idea, but under-funding has hit it hard and people are suffering. Improving the funding is a good place to start. We also need to go further. It is a scandal to have people needing to use food banks or losing the roof over their head because of the way the system works. I’ve spoken with people struggling to live on benefits, who voted Leave in the desperate hope that things would improve.
  • Wealth inequality. Back in the autumn, Vince Cable put forward a raft of tax reforms to make the system fairer, especially around inheritance and investment income and pensions. Univeral Basic Income has been on the edge of discussions for a long time. It is time to take it seriously — it can’t be done overnight, but it is time to start the conversation as a way to pick up where we are, and fears around the way in which technology is reshaping the world.
  • Brexit has pushed climate change from the top of the agenda. People have every reason to be worried. That means is that it is high time to turn that worry into action — around renewable energy, carbon capture and storage, nuclear power, zero carbon housing, improved public transport, and more.
  • The Blair government had some good ideas on devolution, with elected regional assemblies and pulling government offices and development to the same boundaries. The imbalances around devolution to Wales, Northern Ireland and particularly to Scotland would look very different if there was meaningful devolution in England.
  • It’s time to talk openly about federalism. Too often it’s a dirty word in British (or at least, English) politics. It’s time to dispatch the myth that it is about centralising power and put the case for doing centrally only what needs to be done there and pushing decisions as close as possible to the people they affect. That applies as much to devolving power from Westminster as it does devolving it from Brussels.
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A radical, liberal safety net

Two polls since the last General Election have investigated people’s views on introducing a Universal Basic Income. Populus found at the end of July this year that 41% of those surveyed supported the idea with only 17% opposed. The rest were either neutral or didn’t know. This polling also helped illuminate what the public feel would be the costs and benefits, with 49% agreeing it would reduce the stigma of claiming welfare but 45% being concerned about it being unaffordable. If the Liberal Democrats are to back a UBI it is therefore vital that we set out how we will …

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In full: Vince Cable’s speech on universal credit – how the Lib Dems would tackle poverty

Yesterday Vince Cable gave a speech on tackling poverty to the Joseph Rowntree Foundation. He addressed the growing poverty faced by working families and called for changes to Universal Credit – including putting back the £3 billion a year that George Osborne took out with indecent haste the minute we Lib Dems were out of the picture.

He said that the principles behind UC were right, but the implementation was wrong and called for its rollout to be halted until the problems were fixed.

Universal Credit hits Edinburgh, Glasgow and Aberdeen at the end of November. This means that thousands of people face a miserable Christmas as the first payments will be made (or not) the week before the holidays.To put people in the position where they can’t afford to pay their rent, heat their homes or put food on the table at the coldest time of the year is cruel.

Vince addressed the issue of a Universal Basic Income. He is sceptical although he can see the attractions. This is something I really want to believe in as so many people that I normally agree with are big fans of the idea. My worry is that it might entrench other forms of inequality as it doesn’t take into account needs of sick and disabled people and couldn’t be set at a high enough level to properly get everyone out of poverty. If someone can show me how that can be done, then I’d be really open to it.

Anyway, here is Vince’s speech in full:

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Inequality – it’s getting worse

The Office for National Statistics published data yesterday on economic well being. One of the main points from the ONS report was on household property wealth. This data shows that we now have even more inequality between generations. The report reads

The gap in net household property wealth between those aged 30 to 32 and 60 to 62 years has widened in the last 10 years; the net household property wealth of those aged 60 to 62 years was six times that of those aged 30 to 32 years during July 2006 to June 2008, however, this difference increased to 17 times by July 2014 to June 2016.

Also, research showed that consumers’ perceptions of their own financial situation has worsened for three consecutive quarters.

In Quarter 4 2017, the average aggregate balance was negative 1.6 – a decrease from positive 0.7 recorded in Quarter 4 2016. The chart shows a steady drop over the last two years.

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Why the Liberal Democrats must adopt Universal Basic Income

To be quite blunt, I’ve been spending a lot of time lately thinking about where it’s all gone wrong for the Liberal Democrats. I’ve been a member of the party for seven years now, three-quarters of a decade no less, and in that time we have scarcely polled into the double digits.

Amongst the young, the people who you may think would be the natural supporters of an anti-Brexit, progressive party, the outlook is especially bleak. In the latest Times tracker conducted by YouGov, a mere 4% of 18-24-year-olds plan to vote Liberal Democrat at the next election. The number shoots up to a comparatively lofty 7% of 25-49-year-olds but it’s still nowhere near good enough for a party such as ours.

It’s time to face a stomach-churning truth. The Liberal Democrats are not a party that speaks to modern Britain, and we most certainly do not represent Britain’s future. Not the way things stand, anyway.

As someone who is (just about) inside that 18-24 bracket, I think I’ve got a decent idea about why the party has haemorrhaged youth support so drastically (and no, it’s not just about tuition fees – although that is a huge factor as I wrote for the New Statesman in 2015.)

In my view, it comes down to this. When my generation was growing up, we were all sold a story, the same story our parents were sold. Specifically, the story that if you work hard, apply yourself and ‘get on’, then you’ll do well. Our parents bought into that story because it was broadly true for them. But we aren’t buying into it because it’s a lie for us. Millennials are the first generation set to earn less than our parents, so I think we can be forgiven for thinking that the system has not worked.

And it is this broken system that, to me, explains my generation’s disinterest in the Liberal Democrats and our collective adoration for Jeremy Corbyn. The Liberal Democrats want to make the system fairer. But Corbyn wants to tear the system down. That is his appeal, and it’s why we are falling by the wayside.

But we can beat Jeremy Corbyn at his own game. Liberals can remake the system too, and liberalism can provide a much more empowering and inspiring future than socialism ever can.

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Lessons from Finland on Universal Basic Income

Piles of money. Photo credit: czbalazs - http://www.sxc.hu/photo/1236662Aditya Chakrabortty, a Guardian Columnist, recently travelled to Finland to interview a man who’s been part of a Universal Basic Income trial. The scheme gives 2,000 randomly chosen people, who were already receiving unemployment benefits, £493 a month unconditionally. The scheme will finish properly at the end of 2018 and no official results will be published until then, but there is anecdotal evidence from a number of interviews conducted with people chosen to take part.

One such person is Juha Jarvinen. When asked by …

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Universal Basic Services – an alternative to Universal Basic Income?

While Universal Basic Income is popular in principle, support for it falls sharply once increases in taxation or reductions in benefits to pay for it are included as this IPSOS Mori survey shows. UCL’s Institute for Global Prosperity has just published a report, proposing what they call Universal Basic Services as a less costly alternative.

The first point to make about their proposals is that only some of them are truly universal, with others targeted at the lowest two deciles. The Royal Society of Arts, who have their own Basic Income model, have already criticised it.

The Universal Basic Services proposal concentrates on four areas:

Shelter,

Food,

Communications,

and Transport.

Shelter

They propose building 1.5 million new social housing units over seven years, funded by selling long-term Gilts. This is not really contentious, but they then advocate allocating them on the basis of need to people at nil rent and Council Tax and with an allowance for utilities costs. Potentially, there is a problem of inequity here with existing Council tenants who are paying rent, Council Tax and utility bills while receiving Housing Benefit and this does not seem to have been fully worked out in the proposals – they only look at overall costs.

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What party members think about a universal basic income and benefits sanctions

Lib Dem Voice has polled our members-only forum  to discover what Lib Dem members think of various political issues, the Coalition, and the performance of key party figures. 741 party members responded – thank you – and we’re publishing the full results.

The social security debate at Conference this afternoon will be dominated by two major arguments. George Potter recommended rejection of the motion as a whole because it chose not to endorse a universal basic income and because it supports the use, albeit much restricted, of sanctions. Supporters of the UBI may well support an amendment calling for a negative income tax from Calderdale while an amendment signed by members opposes the use of benefits sanctions in any circumstances. We asked our members what they thought of the idea of UBI and sanctions.

Are you in favour of a universal basic income?

Yes 60.32%

No  39.68%

Here are some of the comments made:

It would be a clear, distinct policy and place the Party firmly on the “Left” (which, as Charles Kennedy and Paddy Ashdown proved) is the only place it can survive.

The nature of work is changing and society needs to catch up. The markets can no longer be a funnel for the rich to build up their wealth. Redistribution needs to be far more aggressive.

No. It is fundementally wrong as it discriminates against the most vulnerable in society. Common denominators always end up being the lowest.

Posted in Conference and LDV Members poll | Also tagged and | 31 Comments
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