Report backs universal basic income trials in UK

A report commissioned by shadow chancellor John McDonnell urged that trials of a universal basic income scheme providing regular cash payments to adult citizens should start.

McDonnell hinted that a form of UBI could become policy with the study finding that the pilot scheme could work, helping top up low pay and reducing inequality.

The release of the report on Tuesday will lead to speculation that the party is moving closer towards testing the scheme if it is voted into power. McDonnell told the Independent newspaper as far back as a year ago that the party was considering such a policy.

The shadow chancellor said the study by professor Guy Standing, a member of the Progressive Economy Forum, was an “important contribution to the debate around inequality, austerity, poverty and how we establish a fair and just economic system."

“Whatever mechanism we use [to achieve this], whether ‘basic income’ or another, we have to lead in developing a radical mechanism aimed at eradicating poverty, but also means testing,” he added.

The pilots would include payments on a weekly or monthly basis to every person lawfully resident in the UK on an individual basis, paid without conditions on how the money is spent, or with any means testing to determine eligibility.