Universal Basic Income: A Radical Rethink for the UK's Social Security System

The UK's benefits system is in crisis. Rising inequality, precarious employment, and an outdated benefits system have left millions struggling to make ends meet. It has been a source of contention which has defined the political discourse of the 2010s, where David Cameron's Conservatives focused their ire at benefits recipents. While this was clear scapgoating, there was a legitimate point hidden within - our system is no longer fit for purpose. It’s time for something bolder, something that redefines our relationship with work and welfare.

That’s where Universal Basic Income (UBI) comes in.

By providing every individual with a regular, unconditional cash payment—regardless of employment status or income—UBI has the potential to reduce poverty, improve wellbeing, and create a fairer, more resilient society. It’s a radical rethink of social security, and one that could transform the UK economy. It has been touted by Cameron's old opponent Ed Milliband and came to international prominence as a concept in 2019 when proposed by Andrew Yang in his presidential run. But on the whole it has been dismissed as a pipe dream in conflict with the realities of economics and human nature. Could the UK be the country to prove this narrative wrong?

While the UK has a history of relatively low social security benefits and stringent conditions, there are factors that make UBI a potentially feasible policy. The integrated labour market structure and the existing personal income tax threshold could be leveraged to implement UBI. Recent trials in England and Wales signal a growing interest in exploring UBI's potential, and with nearly half of Britons supporting the idea, the time may be right to consider UBI as a key component of the UK's future social security system.

UBI: A Foundation for Economic Security

At its core, UBI is about security. It offers an income floor beneath which no one can fall, removing the stress and stigma of traditional, means-tested benefits. More than that, it reshapes the economy from one built on desperation to one that allows people to make meaningful choices.

Reducing Poverty and Inequality

The most immediate impact of UBI is the reduction of poverty. A UBI set at a reasonable level could effectively eradicate destitution in the UK. Even a modest one could provide a critical safety net for those at the margins of society.

Evidence from pilot programs worldwide backs this up. In Namibia, a UBI scheme saw household poverty rates drop from 76% to 37% within a year. In Finland, recipients of basic income reported better financial security and improved mental health. The same patterns emerge elsewhere: when people receive a basic income, they don’t squander it—they use it to improve their lives.

Simplifying the System

The UK’s benefits system is a bureaucratic nightmare. Universal Credit is plagued by delays, errors, and punitive sanctions that leave claimants trapped in cycles of insecurity. A UBI eliminates the need for complex eligibility criteria, reducing administrative waste and ensuring that help reaches people without the indignity of jumping through endless hoops.

Promoting Wellbeing

The current welfare system doesn’t just fail people financially—it actively harms their mental health. The stress of meeting job search requirements, the fear of sanctions, and the endless scrutiny placed on claimants all contribute to anxiety and depression.

By contrast, UBI provides security without conditions, leading to reduced stress, improved health, and greater life satisfaction. In Kenya, an ongoing UBI trial has led to increased happiness, less anxiety, and greater community cohesion. It turns out that when people aren’t in a constant state of financial panic, they’re healthier and more productive members of society.

Increasing Freedom and Flexibility

A truly free society is one where people can say "no" to exploitative conditions. UBI ensures that no one is forced to take a demeaning, insecure, or underpaid job just to survive.

In Stockton, California, where a UBI pilot gave participants $500 per month, recipients were more likely to find full-time employment because they had the time and resources to apply for better jobs. A guaranteed income means people can afford to wait for a job that suits them, rather than being funnelled into insecure, low-paid work.

Redefining Work: From Survival to Fulfilment

Work is more than a means of survival—it should be a path to fulfilment. Yet millions are trapped in jobs they hate, doing work they don’t believe in, simply because they can’t afford to do otherwise. UBI changes that.

Empowering Workers

In an economy built on insecurity, power is firmly in the hands of employers. UBI gives workers the bargaining power to demand better wages and conditions, creating a healthier balance between labour and capital.

When people aren’t financially desperate, they are less likely to tolerate exploitative workplaces. They can afford to push for better treatment, unionise, or leave a toxic job without falling into destitution.

Encouraging Entrepreneurship and Creativity

UBI isn’t just about preventing hardship—it’s about unlocking potential. With a basic income as a foundation, people can take risks.

In Uganda, a study found that UBI recipients invested in skills training and tools, leading to a 57% increase in business assets and a 38% rise in earnings. In an economy where financial barriers prevent many from pursuing education or starting businesses, UBI could provide the breathing space needed to innovate.

Recognising Unpaid Work

Caring for children, looking after elderly relatives, volunteering in communities—these are all forms of work that society depends on but rarely compensates.

UBI recognises that work isn’t just what happens in an office or on a factory floor. By providing financial security to unpaid caregivers, it ensures that those doing vital but invisible labour are no longer left behind.

Fostering Arts, Culture, and Innovation

History is filled with artists, musicians, and inventors who struggled financially while developing their craft. A UBI ensures that people have the time and resources to pursue creative endeavours, enriching society in the process.

Take Alaska, where every resident receives an annual dividend from oil revenues. The result? Increased purchasing power, additional jobs, and greater economic stability. A well-designed UBI could do the same for the entire UK.

Valuing Essential Labour

If we’ve learned anything from the pandemic, it’s that the most critical jobs—nurses, teachers, refuse collectors—are often the least financially rewarded. UBI wouldn’t replace fair wages, but it would shift bargaining power. If essential workers had greater financial security, their wages would have to reflect their actual value to society.

Overcoming the Challenges

Implementing UBI isn’t without difficulties. The most common objections—cost, potential disincentives to work, and integration with existing services—require careful consideration.

Rather than a sudden rollout, UBI could be introduced gradually. Pilot programs targeting specific demographics (such as young people or carers) would allow for real-world testing before full implementation.

Funding UBI isn’t impossible—it just requires political will. Progressive taxation on wealth, higher earnings, and corporate profits could provide the necessary revenue. The real question is whether we prioritise human wellbeing over corporate tax cuts.

UBI should be seen as a foundation, not a replacement for public services. Healthcare, education, and housing support must remain robust. A basic income is a safety net—not an excuse to dismantle the welfare state.

A Path to a Fairer Future?

UBI won’t solve all of society’s problems overnight. But it offers something that our current system has failed to provide: economic security, dignity, and the freedom to build a life beyond mere survival. The UK has been a leader in radically shifting the welfare state before, with the conception of the NHS often touted as a source of national pride despite its recent struggles. With our international influence waning, this could be a domestic policy that reasserts the UK as a forward thinking nation which is interested in proving that a society is founded on supporting one another.

A fairer, more prosperous future is within reach. The only question is whether the UK can be bold enough to roll the dice.