Basic Income trial confirmed in Wales

Mark Drakeford, Wales’ new First Minister, announced soon after the Senedd elections in May that the government will launch a basic income trial in the country. As Basic Income News mentioned over a month ago, the support for trialing basic income in the country has greatly increased and Drakeford has confirmed that a pilot will be launched soon.

Jane Hutt, recently appointed as Minister for Social Justice, will be in charge of the supervision of the project. There is still no definitive information regarding the funding and date of implementation of the pilot, but the government’s commitment is firm. “A basic income pilot is one of the specific responsibilities of our new social justice minister. It will have to be carefully designed, it will draw on the experience of attempted pilots in Scotland, but I have a very long standing interest in basic income”, Drakeford said. “We’ll do it on a cross-party basis. There are 25 members of the Senedd in different parties who have expressed an interest in it,” he added.

The Future Generations Commissioner for Wales, Sophie Howes, said that the launching of the pilot shows an “incredibly significant commitment by the First Minister to tackling Wales’ poverty and health inequalities,” and that this trial shows that small countries can lead big policy changes.

Jonathan Rhys Williams, from UBI Lab Wales, said that “this is a huge moment for the basic income movement in the UK and around the world.”

Sources:
Wales to launch pilot universal basic income scheme. Steven Morris (The Guardian), 14 May 2021
Incredibly significant’: First minister commits to basic income pilot in Wales. Nation Cymru, 14 May 2021

United Kingdom: Shadow Chancellor John McDonnell affirms basic income will be piloted in the UK, if Jeremy Corby gets elected in December

United Kingdom: Shadow Chancellor John McDonnell affirms basic income will be piloted in the UK, if Jeremy Corby gets elected in December

John McDonnell. Picture credit to: PoliticsHome.

 

John McDonnell’s proposes to include a basic income pilot in the next Labour Party’s manifesto, an intent which has been going on since 2016, at least. During 2018 a working group was formed, led by professor Guy Standing, a prominent economic advisor to McDonnell and specialist in basic income and related issues, giving rise to the publication and presentation in May 2019 of a detailed report about its applications within the UK’s context. McDonnell dubs this new manifesto as “more radical” than the previous 2017 manifesto, probably also including the more urgent measures to curb carbon emissions, relating to the impending climate emergency.

 

McDonnell, a 40-year companion to Jeremy Corbyn in politics, is now sure that “at least one pilot” should be set up in the United Kingdom territory, as soon as the Labour Party gets elected to government and Corbyn sits as Prime Minister. This is still being internally drafted within Labour’s top advisors, but McDonnell remains confident. He has said that “we’ve had [basic income pilot] bids from Liverpool, Sheffield, [and] a couple of other places”. Meanwhile, in Scotland, a basic income feasibility study is being developed, involving the localities of Fife, Edinburgh, Glasgow and North Ayrshire.

 

More information at:

André Coelho, “United Kingdom: Guy Standing presenting report “Piloting Basic Income as Common Dividends”, Basic Income News, May 6th 2019

Ashley Cowburn, “General election: McDonnell vows to present Labour’s most ‘radical’ manifesto with universal basic income pilot”, Independent, November 11th 2019

Ashley Cowburn, “Labour set to include pilot of radical basic income policy in next manifesto, John McDonnell says”, Independent, July 31st 2018

André Coelho, “Scotland: How the Scottish Citizens Basic Income Feasibility Study has been evolving”, Basic Income News, March 31st 2019

United Kingdom: Guy Standing presenting report “Piloting Basic Income as Common Dividends”

United Kingdom: Guy Standing presenting report “Piloting Basic Income as Common Dividends”

John McDonnell (left) and Guy Standing (right)

This week, on May 7th, Guy Standing will be presenting a report prepared at the request of the Shadow Chancellor of the Exchequer, John McDonnell MP. The complete title of the report is “Piloting Basic Income as Common Dividends”.

The event is organized by the RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce) and the Progressive Economy Forum (PEF), and will take place at the RSA’s Great Room Auditorium, at 11 am. It will be introduced by RSA’s Director Anthony Painter and PEF’s Chair Patrick Allen, followed by an opening keynote by John McDonnell himself. After that Guy Standing will present the fifty-page report in about thirty minutes, which will then be openly discussed by commentators Ed Miliband, former Labour Party Leader, Margaret Greenwood, Shadow Work and Pensions Secretary, and Caroline Abrahams, Age UK Director, as well as in a round of questions and answers with the audience.

Although other books and reports have been made public, focused on basic income for the British reality (e.g.: Annie Miller’s “A basic income pocketbook”, Malcolm Torry’s “Why we need a Citizen’s Basic Income”), this was the first time a British politician has specifically asked  for a report on basic income. As Shadow Chancellor, John McDonnell and the Labour Party had been flirting with the idea, however, since early 2016 (even though McDonnell had been a basic income supporter as far back as 2014).

More information at:

Kate McFarland, “United Kingdom: Labour Party to look into Basic Income”, Basic Income News, June 6th 2016

Toru Yamamori, “United Kingdom: Labour Party considers universal basic income”, Basic Income News, February 21th 2016

Toru Yamamori, “United Kingdom: Basic income supporter John McDonnell becomes shadow chancellor”, Basic Income News, September 18th 2015

Canada: Ontario’s basic income experiment ended, but the ground is fertile for more pilots

Canada: Ontario’s basic income experiment ended, but the ground is fertile for more pilots

Jean-Yves Duclos. Picture credit to: The Star.

After the cancellation of the Ontario basic income experiment, country-wide discussions about the issue continues in Canada as the Federal Government approaches the policy, although a direct intervention in Ontario is unlikely. Prime Minister Trudeau and his Social Development Minister Jean-Yves Duclos have already stated that the Federal Government does not intrude into regional policy programs. However, Duclos has said, this month, that existing benefits will eventually cover more people than those already eligible for state (not universal) guaranteed minimum income. In his words: “At some point, there will be a universal guaranteed minimum income in Canada for all Canadians”.

So, despite all the opposition, rallies and advices against the Ontario axed basic income experiment, apparently it is indeed buried. However, it seems, interest in the concept is higher than ever, which is not surprising since the causing needs are still there (poverty, bureaucratic conditional welfare, precariousness, unemployment). Pundits on television agree over the concept, while looking at it as a tool to reduce the government influence radius (a more conservative approach to basic income), but certain that other basic income pilots will effectively be tried out in Canada (if not by other reasons, for beefing up the liberal agenda). Trudeau, on his end, has expressed sympathy for basic income, as a way to support workers, giving people some stability. That and a myriad of other considered policies, according to him: “I don’t think I’d be speaking out of turn to say that [basic income] it’s still something that is in the universe of all sorts of tools that we’re looking at on how to best help Canadians”.

Even though the Federal parliamentary budget office has calculated that supplying a guaranteed financial floor to all Canadians (up to an average of CAN$ 9421/year) would implicate an expenditure rise on social benefits of around 30%, basic income captures interest even on the Conservative side of the political spectrum. Karen Vecchio, MP for the Conservatives, has favoured the concept, although rising cost implications and questioning eventual long-term benefits for Canadians. That’s exactly why Hugh Segal, one of the Ontario basic income experiment designers (and former Conservative senator), affirms that such pilots are necessary: “to figure out whether the idea works”. Segal, as well as Jagmeet Singh, leader of Canada’s New Democratic Party, argue that the Federal Government should pick up the cancelled Ontario basic income experiment, or at least help in financing further regional pilots.

More information at:

Kate McFarland, “Ontario, Canada: New government declares early end of guaranteed income experiment”, Basic Income News, August 2nd 2018

Shawn Jeffords, “4 Ontario mayors asking feds to take over basic income pilot”, Global News, September 7th 2018

Kate McFarland, “Ontario, Canada: Project advisors oppose termination of pilot study”, Basic Income News, August 7th 2018

Health officials and poverty advocates call on PC government to reverse decision on basic income pilot”, Global News, August 9th 2018

Jordan Press, “Liberals looking at national basic income as a way to help Canadians cope with job instability”, Global News, December 19th 2018

United States: The National League of Cities launches a report for piloting UBI in cities

United States: The National League of Cities launches a report for piloting UBI in cities

City Leaders attendees in L.A. at City Summit. Credit to: NLC.

 

The National League of Cities (NLC), an organization serving the interests of 19000 cities, towns and villages across the United States territory, has released, in a partnership with the Stanford Basic Income Lab (BIL), a basic income report to serve as guide to piloting UBI in cities. Framed as a toolkit, it is directed at city leaders and aims to guide policy rather than blueprint UBI pilots. It is intended to help cities considering introducing basic income experiments, providing historical background, prior experiment reports and results and present-day efforts in that regard.

 

The UBI is seriously contemplated by the NLC as a possible solution – although not a panacea – to growing automation, labour precariousness and peaking inequality. Basic income is also seen as an effective way to boost entrepreneurship, while providing a solid safety net. City leaders are conscient, though, that cities are limited in their ability to introduce basic income schemes, as they are part of wider nation-state organizations and governments. However, cities can act as experimental grounds to provide results and identify hurdles, both crucial aspects of an eventual nation-wide UBI implementation.

 

The basic income toolkit for cities is also meant to be a piece in what has been called a Theory of Change (ToC). A ToC is a study built as a roadmap to introduce meaningful change to a complex system such as a city. It is designed to help cities articulate their short, medium and long-term goals, and, within this context, draw important and already available outcomes from unconditional cash-transfer programs. Conversely, the ToC helps in calibrating the UBI experiment, informing on which data to collect, and when.

 

In a nutshell, the basic income report for UBI experiments in cities issues recommendations on identifying the goals (of the experiment), choosing those involved and when these should participate, defining the choice of recipients, specifying how to measure success and creating an effective communication strategy.

 

 

More information at:

Brooks Rainwater, “Yes, Cities Can Pilot Universal Basic Income”, National League of Cities, November 9th 2018

Juliana Bidadanure et al., “Basic Income in Cities – A guide to city experiments and pilot projects”, National League of Cities and Stanford Basic Income Lab, 2018