New 'basic income' trial could give Brits £1600 a month, here's what you know to know

The idea of Universal Basic Income (UBI) has been dividing society for the past 50 years, and there is still no consensus among researchers and politicians on the topic.

But the rise in threats to people’s ability to generate money, ultimately resulting in a cost of living crisis - pandemics, wars, and AI-powered technology - sees the idea gather more and more supporters.

UBI advocates believe that the scheme will benefit people’s mental health and personal growth, helping them become happier and perform better at their chosen jobs over time.

These are the arguments that may lead to England becoming the latest country to test UBI waters.

Here is who will participate and how the experiment will be implemented.

Here is who will participate and how much they’ll get

Thirty participants from central Jarrow, in north-east England and East Finchley, in north London will be selected to participate in the first such experiment in the country.

They will be paid a monthly lump sum of £1600 without any conditions for two years and will be observed, for the researchers to understand the effects of guaranteed income on their lives, including their mental health and physical wellbeing.

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The two-year-long micro pilot scheme has been proposed by the think-tank Autonomy which estimates UBI payments to come up to £1.15 million for the whole duration of the experiment, with further costs of about £500,000 for evaluation and research.

Will Stronge, director of research at Autonomy, said:

A guaranteed Basic Income could be transformative for welfare in this country.

All the evidence shows that it would directly alleviate poverty and boost millions of people’s well-being: the potential benefits are just too large to ignore.

According to Stronge, people face ‘decades of economic shocks due to climate change and new forms of automation’ and the UBI will be ‘a crucial part of securing livelihoods in the future.’

Has UBI been tested before?

A lot of countries debated the idea of guaranteed income in the past.

No country has adopted unconditional UBI yet but quite a few - including Iran, India, Brazil, Kenya, Namibia, Canada, Finland, and parts of the United States - have tested it.

A similar scheme is being trialled in Wales for hundreds of young people who have just turned 18 and have been brought up in care.

Cleo Goodman, co-founder of Basic Income Conversation, said:

We’re hopeful that this plan will result in the first-ever Basic Income pilots in England.

No one should ever be facing poverty, having to choose between heating and eating, in one of the wealthiest countries in the world.

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Sources used:

- Mirror: 'People in England could be given £1,600 a month under new 'basic income' trial'

- The Guardian: 'Universal basic income of £1,600 a month to be trialled in two places in England'

- World Population Review: 'Countries with Universal Basic Income 2023'