Personal Income

(asked on 24th June 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with Cabinet colleagues on implementing a basic income to support the UK economy’s recovery as the covid-19 lockdown restrictions are eased.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 29th June 2020

The Government is committed to helping families get through this crisis. The Government has announced a significant package of welfare measures to support those who need it most, including a £20 per week increase to the Universal Credit standard allowance.

The Government’s approach to welfare is to recognise the value and importance of work, while protecting the most vulnerable in society. The Government considers that there are fundamental problems with the realities of a Universal Basic Income (UBI) and does not see it as an effective method of advancing social equality.

This is because a flat rate UBI does not take into account the additional needs and costs faced by some individuals. It therefore has the potential to increase inequality markedly. Any practical implementation would also be expensive, and would require a significant increase in taxation.

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