UNIVERSAL BASIC INCOME
In it’s latest report on poverty in the UK 2019-20, the Joseph Rowntree Foundation finds great fault within the current economic system for those seeking to aspire. These applies to, Families, children, single people and ethnic minorities as well as the disabled. Trapped within a benefits system that is not addressing needs, higher housing costs and low wages, the life and happiness of the majority is in decline. This in turn leads to poor mental health. A link is given at the bottom of the page to the full report.
The current benefits system is being amalgamated into one whole. This being Universal Credit. This was originally conceived as a way to simplify the benefits maze and enable work to pay by reducing the amount taken off claimants as their hours of work increased. Later cuts enforced by Austerity measures would see this new scheme face continual problems. The delay in initial payments for six, then five weeks left claimants destitute. Advanced payments were introduced, though these are in fact loans which have to be repaid as there is no official payment for the five weeks. £100 per month for a £1,000 loan is the staple guidance on this.
It is clear from the above that the current benefits system is designed to punish those in poverty rather than alleviate poverty. Its regimental deduction rate of 65% for those in work has now created a new working poor. These people are trapped in menial jobs enforced by the DWP (Department of Work & Pensions). The Rowntree report calls for a stronger benefit system which upholds and supports reducing hardship at every level, and creates an economic environment which protects all from poverty. This, it states will need a change of public perception of the benefit system.
Recent suggestions have been put forward for Universal Basic Income. This is an amount that pays all bills, while allowing spare money for savings, contingency and recreation. It is a way to empower citizens by calling on them to either find gainful employment or create their own, whatever that may be ie arts, entertainment, mechanics, research, gardening etc. The guarantee being that Universal Basic Income will support their lives even if the hours that they put in are voluntary. In this way communities benefit from more active citizens. For the disabled, physically ill and mentally ill then full support is given.
In summary, there can be no doubt that the current crossover to Universal Credit with its harsh sanctions and penalties is plunging people into debt, eviction, and creating a new working poor who are pushed into low-paid full-time menial work. A leveling of society needs to happen which will involve higher taxes for the richest people in society, which would be their own contribution to the nation, perhaps coupled with sponsorship of new meaningful work schemes. Only in this way can the dividing lines of society be bridged in a one nation sense with social democratic principles.
Alan Ewing, MSc, BA (Hons), Cert HE
