A universal basic income of £1,600 a month is to be trialled in England for the first time, it has been announced.
Central Jarrow in north-east England and East Finchley in north London have been selected for the pilot scheme, with 30 people handed the cash and monitored over two years to see what effect it has on mental and physical health.
Those advocating for the welfare net to be brought in say UBI can provide a level of economic security to everyone while lessening the reliance on other services.
But others argue the cost of such schemes makes them impractical.
Will Stronge, the director of research at the thinktank Autonomy, which is backing the plan, said of the £1,600 figure: “This is a substantial amount. Universal basic income usually covers people’s basic needs but we want to see what effect this unconditional lump sum has on people’s mental and physical health, whether they choose to work or not.
“Our society is going to require some form of basic income in the coming years, given the tumult of climate change, tech disruption and industrial transition that lies ahead. This is why building the evidence base and public engagement now is so important, so the ground is well prepared for national implementation.”
Last year, Andy Burnham, the mayor of Greater Manchester, said UBI was an idea “whose time has come” as he spoke on the cost of living crisis.
Burnham said: “A universal basic income will put a solid foundation beneath everybody so that they can have a life with security and stop worrying about everything.”
Similar pilots are already under way in other countries. In Wales, the devolved government is running a scheme paying a £1,600 a month for two years to young people leaving care. It says it will report on the outcome after the trial finishes.
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