UBI or Not?

In Scotland, the Green Party has proposed a model of UBI which could get close to being fiscally neutral. This would see much of the existing welfare system replaced by a payment of £5,200 per year for adults and £2,600 for children, alongside significant reform the tax system. In this scenario, personal allowances would be removed and combined tax and NI rates increased for all.

Citing security in the labour market as a key reason for the policy proposal, this model has been welcomed by proponents of UBI. However, at £400 a month for adults while also removing almost all the welfare state, it is unlikely to buy much economic freedom for those on low incomes or insecure and exploitative employment contracts. In reality some would see their incomes drop. For instance, in Scotland, lone parents would see their monthly earnings fall by around £300 a month.

What’s more, a model of UBI paid at this level would also have notable impacts on rates of relative poverty. Were this model introduced in the UK as a whole, it would also raise relative child poverty by 17%, placing a further 750,000 children into households who earn below 60% of the median income. This is because while it would raise the incomes of those earning the least, it would also raise incomes for all but the highest income decile, lifting the poverty line higher.

Research commissioned by the Joseph Rowntree Foundation has similarly found that UBI schemes increase relative poverty for working-age adults, children, and pensioners. The introduction of a UBI, according to their modelling, could see the number of children in poverty rise by up to 60%.

Increasing the incomes of those at the bottom of the distribution is imperative. This is demonstrated clearly by the rise of food banks deprivation and income crisis in the UK since 2010, which is a direct result of government policy choices. However, using a UBI to achieve this, at the expense of say increases or reforms to Universal Credit and a more generous and less conditional unemployment benefit, comes at the cost of addressing, and in fact exacerbating, relative poverty. The pursuit of a fiscally neutral UBI has led to a series of proposals which, if implemented, would do little to raise the material circumstance of those in poverty nor provide sufficient additional power in the labour market. 

Taken from here

The Socialist Party is in favour of a society of common ownership and democratic control where people wouldn't have "incomes" but have free access to what they needed. The Socialist Party declares that most proposals for a UBI are merely just tax reformism and a reform of the poor law.