Universal Basic Income

Debate between Alison McGovern and Angela Crawley

Wednesday 15th June 2022 Westminster Hall

[Alison McGovern]

I will go on to say why universal basic income is not the Labour party’s policy.

Basic facts are important. The hon. Member for Lanark and Hamilton East could tell us more about the situation in Scotland. She mentioned the experience of the Scottish Government, and I think she could make her argument by giving some more basic facts. It is difficult to see exactly what she wants the change in system to do when we do not know exactly what is being proposed.

The hon. Lady mentioned supporting the idea of a minimum income guarantee, as did several Members. That, however, is not the same as a universal basic income. A minimum income guarantee is about a standard below which no one should fall, whereas a universal basic income—as I understand it from her—is about a universal payment for everyone, regardless of circumstances.

We need to think about this from first principles. Our social security system has two purposes: first, to smooth incomes over a person’s lifetime. We therefore have universal aspects to our system that we all agree with, such as the idea of the state pension being universal on the basis of age. Other aspects of our social security system, such as child benefit, are paid on the basis that children have limited possibilities to generate income. In fact, we absolutely think that children ought to be supported, though we could have a long debate about the two-child policy and the fact that it rather contravenes the principle. That smoothing of income over a lifetime is exactly as Beveridge envisaged the system would work.

Secondly, our social security system addresses the needs that people have in order to enable their full participation in society—so, those who have extra costs, the obvious example of which is people who have a disability .

[Angela Crawley]

The hon. Member has made it very clear that the Labour party does not support universal basic income, which I find profoundly fascinating. However, that is not the point that I want to make. She also said quite clearly that she felt the benefit system had started to change since 2010. What lessons have been learned by the Labour party, which itself had a system that was far less than perfect, and what exactly is she proposing to ensure that those living on the lowest incomes can at least have the basic subsistence that is required?

[Alison McGovern]

I will come to that point, because I will set out shortly, if I may, what I think is the important way in which we should take our country forward.