Income Equality and Sustainability

Lord Bruce of Bennachie Excerpts

Wednesday 6th May 2020 Lords Chamber

[Lord Bruce of Bennachie (LD)]

My Lords, I wish to support the case for a universal basic income. The current crisis has shown the need for people to have access to basic funding, yet the machinery to deliver cash to many people does not exist. Many key workers on whom we now know a functioning survival economy depends—not just health and social care workers but delivery drivers, shop assistants and food producers—are all paid below average. Others, such as those on zero-hours contracts, those living within the cash economy and some self-employed people, are missing out altogether.

The post-Covid-19 scenario may be for higher unemployment and less job security. Work patterns are likely to change radically as more technical solutions are applied. It is true that new technologies may create new jobs, as some argue, but they may also make some jobs redundant. That will leave a small number of lucrative activities; some, but fewer, low-skilled and lower-paid jobs; and, overall, not enough employment to go round. We surely cannot contemplate a society were a small minority corner the jobs and opportunities, leaving the overwhelming majority behind. It is not only unfair but likely to prove politically unsustainable.

The scale of government intervention in the past two months shows that a universal basic income could be affordable. If it were set at between £50 and £100 a week, it would provide basic peace of mind and security, but not at a level that would deter people from joining the workforce if they could. It would also make people more willing to engage in consumption, and would therefore act as a stimulus to the economy. It certainly should not be buttonholed in any ideological category. It can be applied in a way that is economically and socially beneficial, right across society, and could sit alongside other targeted benefits. It could be funded through taxation in much the same way as child benefit, which is clawed back progressively, up to 100% from higher earners. A universal basic income would make a significant contribution to evening out income inequality. It is an idea whose time has come.