Universal Basic Income

Dear constituent,

Thank you for contacting me about Universal Basic Income (UBI) in relation to the current coronavirus situation.

The Government has a huge responsibility to ensure that people do not immediately fall into hardship. It has said it is not in favour of a UBI, stating that it believes it is “not targeted at the poorest in society and is not an appropriate way for us to try to distribute money”.

This situation demands new economic thinking. We have to build resilience into our social protection to deal with the growing strain on our economy and public services. The social security system we had going into this crisis was a safety net with too many holes in it. We must consider how we can widen that net so that everyone who needs support gets it, and the steps that will need to be taken as we move from response to recovery. Universality has always been a part of our social security system. Child benefit, for instance, was a form of UBI for children.

I believe the Government must agree to five urgent social security measures to provide immediate support to people affected by coronavirus. Universal Credit (UC) advances should be converted into grants instead of loans, ending the five-week wait, and the £16,000 savings limit which disqualifies individuals from accessing UC should be lifted. I also support suspending the benefit cap and abolishing the two-child limit. Legacy benefits must be uprated to match the increase in UC, providing an immediate increase in Jobseeker’s Allowance and Employment Support Allowance.

I welcome that the Government has acknowledged that the social security system we had going into this was not fit for purpose. I believe we must build one that is, and I am willing to consider all ideas and proposals to make sure we achieve that aim.

I accept that creating an entirely new social security system is unlikely to be possible at present. However, as we come out of the pandemic, we need a new settlement that is simpler, more effective and offers proper protection to people. That involves exploring a range of policy options. We need a renewed national effort to fight the inequality, poverty and insecurity that should have no place in this country at any time.

Thank you once again for contacting me about this issue.

Yours sincerely,

Peter Dowd MP