Universal Basic Income

Debate between Geraint Davies and Ronnie Cowan

Wednesday 14th September 2016 Westminster Hall

[Ronnie Cowan]

I am not here to speak on behalf of either the Irish Government or the Swiss Government, but there is absolutely no indication that providing somebody with a basic income removes the incentive to work. Instead, what it does is to put life choices in front of people, so that if they want to study part time, work part time or work on a farm voluntarily they will not be penalised for doing those things, and therefore it is more likely that people will be prepared to take on work at a level that suits them.

If policy makers regard the basic income idea as simply an academic or abstract economic concept, we will never see it being used to break down the worrying levels of poverty and inequality that we have in the UK. The United States, Canada, Namibia and India have all piloted basic income schemes, while Finland and the Netherlands plan on trialling limited local schemes.

Many Members will be aware that Switzerland has already held a referendum on the implementation of a basic income. Although the proposal was rejected, that shows that other nations already have a more developed understanding of the concept. The charity GiveDirectly has announced that it will launch a full basic income trial. The project will involve at least $30 million and academic support from leading researchers. The trial will fully adopt the basic income model by making regular cash payments to every resident in several villages in Kenya.

I secured this debate with the humble notion that I do not have all the answers to the questions. I hope to facilitate discussion, to debate with my parliamentary colleagues and to consult the relevant organisations about the benefits and feasibility of the basic income concept. I believe it was first proposed by Thomas Paine in his 1797 pamphlet “Agrarian Justice” as a system in which at the “age of majority” everyone would receive an equal capital grant—a “basic income” handed over by the state to each and all, no questions asked, to do what they wanted with. Could this be an idea whose time has finally come?

On 25 May 1961, President John F. Kennedy announced before a special joint session of Congress the dramatic and ambitious goal of sending an American to the moon before the end of the decade and returning him safely. Not for one minute did he intend to design the rockets himself, and he had no ambition that I know of to be on the flight. His not unrealistic and ultimately correct proclamation was built on the premise that he knew America had the time, the money, the brain power and the will to achieve the goal. He challenged the American people to succeed and they rose to that challenge. I stand here in front of the Chamber today and I challenge all of us to work together to create a fairer welfare system—one that does not trap people in poverty, but instead acts as a platform from which the citizens of the United Kingdom can build better lives for themselves.

[Geraint Davies (in the Chair)]

If Members want to take off their jackets, as I already have, they are obviously free to do so.

--- Later in debate ---

[Ronnie Cowan]

Thank you very much—and it is pronounced Cow-an, as in cow, as in “moo”.

[Geraint Davies (in the Chair)]

Cowan—sorry.

[Ronnie Cowan]

I thank the Minister, the hon. Members for Oldham East and Saddleworth (Debbie Abrahams) and for Brighton, Pavilion (Caroline Lucas), and my hon. Friend the Member for Banff and Buchan (Dr Whiteford) for their contributions. I also thank the Members who interceded and kept the debate going, which is an important part of the process: the hon. Member for Stretford and Urmston (Kate Green), my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Dr Monaghan) and the hon. Member for Solihull (Julian Knight), who is no longer in his chair—he adopted the seagull strategy of fly in, make a lot of noise and leave.

I am disappointed that the Minister seems so intransigent in his support for the current system. It concerns me slightly that he is so happy with the status quo. I end with a quote from Noam Chomsky, who said:

“Optimism is a strategy for making a better future. Because unless you believe that the future can be better, you are unlikely to step up and take responsibility for making it so.”

I ask the Government to take responsibility.