Wales to trial universal basic income

A universal basic income (UBI) scheme - meaning adults, regardless of their personal income, will receive a regular sum of money - is set to be tested in Wales, according to First Minister Mark Drakeford.

The concept of UBI is to cover the essential cost of living for every adult in the country, which can be supplemented by household income and has seen some cross-party support.

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The First Minister described the pilot as a test to see whether the promises associated with the scheme are "genuinely delivered."

He said it would need to be "carefully designed to make sure that it is genuinely adding income for the group of people we are able to work with," referencing similar attempts to introduce a UBI scheme in Scotland.

He added: "It'll have to be a pilot because we don't have all the powers in our own hands to do it on our own.

"It'll have to be carefully crafted to make sure that it is affordable and that it does it within the powers available to the Senedd (the Welsh legislature).

"We need to make an early start on designing the pilot to make sure that we have the best chance of operating a pilot that allows us to draw the conclusions from it that we would all want to see."

He specified the need for cross-partisan support to introduce it, saying that 35 Senedd members have expressed interest.

Supporters of UBI claim it may be necessary in the face of unstable job markets, as well as increasing issues and job losses associated with technological progress such as manufacturing automation and continued offshoring of essential jobs. They also claim it will provide a greater safety net for unemployed or freelance workers or allow room for them to learn new skills or apply for new jobs.

There are also claims it could help avoid the "poverty trap" pushed by normal benefits policies, although there is little evidence to support this, primarily owing to a lack of successful UBI schemes.

However, critics claim it encourages people not to work, and express concerns over the potential for a tax hike associated with the policy as well as it covering people who may not need access to UBI owing to high household incomes.

The Welsh Conservative party have also expressed scepticism at the programme, not wanting Wales to turn into a "petri dish of failed left-wing policies".

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Regardless, there has been a change in tone regarding UBI in the wake of the pandemic in the UK, particularly since the government's furlough scheme came into place.

The UK Labour Party also pledged to trial UBI in its 2019 election manifesto.

There are currently five different models for UBI, according to Citizens Income. It is currently unknown which model will be used in Wales, but it is likely some trial-and-error will be required.

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