Universal Basic Services: Difference between revisions
No edit summary |
|||
| Line 1: | Line 1: | ||
=Description= | |||
Ben Chapman: | |||
"Instead of attempting to alleviate poverty through redistributive payments and minimum wages, the state should instead provide everyone with the services they need to feel secure in society, the report’s authors argue. | |||
They say UBI is expensive. Paying all UK citizens the current Jobseeker's Allowance amount of £73.10 per week would cost almost £250bn per year - 13 per cent of the UK’s entire GDP. | |||
By contrast, widening the social safety net through more comprehensive services would cost around £42bn, which can be funded by lowering the personal income tax allowance from £11,800 to £4,300, according to the IGP’s analysis. | |||
The experts say an expansion of basic services to everyone is highly progressive because those who rely on them will be disproportionately the least wealthy in society." | |||
(https://www.independent.co.uk/news/business/news/universal-basic-services-idea-better-basic-income-citizens-social-housing-ucl-a7993476.html) | |||
=Discussion= | =Discussion= | ||
Revision as of 10:31, 4 April 2018
Description
Ben Chapman:
"Instead of attempting to alleviate poverty through redistributive payments and minimum wages, the state should instead provide everyone with the services they need to feel secure in society, the report’s authors argue.
They say UBI is expensive. Paying all UK citizens the current Jobseeker's Allowance amount of £73.10 per week would cost almost £250bn per year - 13 per cent of the UK’s entire GDP.
By contrast, widening the social safety net through more comprehensive services would cost around £42bn, which can be funded by lowering the personal income tax allowance from £11,800 to £4,300, according to the IGP’s analysis.
The experts say an expansion of basic services to everyone is highly progressive because those who rely on them will be disproportionately the least wealthy in society." (https://www.independent.co.uk/news/business/news/universal-basic-services-idea-better-basic-income-citizens-social-housing-ucl-a7993476.html)
Discussion
Antony Painter:
"UCL’s Institute for Global Prosperity alternative approach to UBI, their proposal is for universal basic services including access to mobile and internet, housing, food, and transport at a cost of 2% or so of GDP per annum. Would this be a better way to go than the politically challenging route of UBI?
On the face of it, it is attractive. The politics of giving people services rather than cash seems easier. The NHS is founded in just this way. The report finds that the maximum value of this approach is £126 per week. The same money distributed as a UBI would deliver just £12.47 a week. Slam dunk right? Not so fast.
On closer reading, it turns out that ‘universal’ basic services are no such thing. The maximum value would accrue to 1.5 million households - those who benefit from the free housing component. For the other tens of millions, the value is quickly reduced to £39 a week. And if you don’t or can’t use public transport, for example if you live outside of cities, then the value is a mere £18 per week. And if you don’t wish to take up the food support? Then the value to you is £5 of free broadband and mobile – the only ‘universal’ element.
It turns out therefore that ‘universal’ basic services is actually ‘targeted living cost support’. And this is why the politics would likely backfire, with a whole host of unintended consequences lurking in the shadows such as stigmatisation of food support claimants as is entrenched in the US. ‘Universal’ basic services feels very much like an expansion of welfare – along with the political barriers of that approach - rather than a different approach to supporting all.
There is an opportunity cost too. The £42bn a year cost is a sum that would unlocks UBI. It may be only worth £12.47 per week but it’s rather like broadband services: it’s the investment that connects the final mile to actually put in place a decent UBI. By turning personal tax allowances into a cash payment, merging in much of the welfare state (with the exception of disability, housing and childcare) plus this extra investment, we would have a full UBI and the greater freedom and security that goes with it.
The authors of the report are right to highlight that other things matter and not just cash support. Our housing needs are at emergency levels. Transport and digital infrastructure matter in support of economic opportunity. Food insecurity in a country as wealthy as the UK is shameful. A series of responses are needed; UBI is just one element of a possible new social contract." (https://www.thersa.org/discover/publications-and-articles/rsa-blogs/2017/10/universal-basic-services-or-universal-basic-income)