UNIVERSAL BASIC INCOME 1
Universal Basic Income
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Universal Basic Income 2
Whether the implementation of a Universal Basic Income will be an effective method of
fighting poverty is subjective and depends on different people's thoughts regarding such a policy.
A universal Basic Income refers to a government program, which provides citizens with a ceratin
amount of money regularly. Several people may regard the policy as beneficial since a take up of
a basic income could be higher than for current means-tested benefits. Others would argue such a
policy is not affordable and is unpalatable to most of the public. Therefore, before concluding
whether the Implementation of a Universal Basic Income will be an effective method of fighting
poverty, it is important to examine whether the program is beneficial or not for poverty
reduction.
A universal Basic Income is regarded as a solution to most stigmatized benefit systems
and the ills of modern economies. However, the policy is unpalatable and unaffordable to most
public since it increases poverty unless effectively modified beyond to address higher needs of
the public. According to Acemoglu (2019), the policy does not address the higher needs of the
citizens, such as childcare, disabilities, children, and rent. Therefore, such a policy would be
inadequate and cannot be sustained in the long-term especially if it is scaled up to serve whole
populations.
Proponents of the Universal Basic Income argue that such a policy effectively reduces
poverty; since the basic income may increase more than prevailing means-tested benefits.
Perhaps because of examples such as those of Scotland where the policy reduces poverty by
280,000 from the initial 1.15 million, child poverty falls by 90,000. Therefore, due to such
results, proponents regard setting a universal basic income at current benefit levels to have a high
potential of reducing poverty.
Universal Basic Income 3
However, there are other policies, which are more effective at reducing poverty. For
example, the UK abolishes the two-child benefits limit and cap, increasing Universal Credit's
main child element by forty dollars every week, targeting families having children in poverty
(Child Action Group, 2019). Such a policy, which would lift more children out of poverty
In conclusion, implementing a Universal Basic Income to fight poverty in the UK is not
an effective method. Such a policy is unpalatable and unaffordable to most public hence
unsustainable in the long-term. Though the policy may reduce poverty, more effective policies
are available that reduce poverty to far greater numbers.
References
Universal Basic Income 4
Acemoglu, D. (2019). Why Universal Basic Income is a bad idea. MarketWatch. Retrieved 30
November 2020, from [Link]
is-a-bad-idea-2019-06-19#:~:text=But%20UBI%20is%20a%20flawed,rest%20of%20the
%20safety%20net.&text=And%2C%20no%2C%20a%20permanent%20UBI,UBI%20is
%20a%20terrible%20idea.
Child Action Group. (, 2019). A package to restore benefits for children could lift more than
700,000 children out of poverty. CPAG. Retrieved 30 November 2020, from
[Link]
more-700000-children-out.
Citizens’ Basic Income Feasibility Study Steering Group. (2020). Assessing the Feasibility of
Citizens’ Basic Income Pilots in Scotland: Final Report. [Link]. Retrieved 30
November 2020, from [Link]
content/uploads/sites/75/2020/06/Draft-Final-CBI-Feasibility_Main-Report-June-
[Link].