Universal Basic Income

Debate between Ronnie Cowan and Alison McGovern

Wednesday 15th June 2022 Westminster Hall

[Alison McGovern (Wirral South) (Lab)]

It is a pleasure to serve under your chairship, Ms McVey. I congratulate the hon. Member for Lanark and Hamilton East (Angela Crawley) on securing the debate, which has been good, although slightly interrupted. Her argument against financial insecurity was a very good one. It is stressful to tackle poverty. A family that does not have enough will almost certainly experience significant mental health challenges and will not lead the kind of life that we would wish for them.

The hon. Lady also made a good argument for what has gone wrong in the Department for Work and Pensions since 2010. There are numerous examples where the actions of Government have caused simply unnecessary stress and pressures. All hon. Members argued against poverty and for a universalist approach for a United Kingdom where no one is left behind. That is where we agree. But I was not clear what the hon. Member was arguing for. She mentioned several times that it is not possible to give full details and that is why UK Government should do more research, or that somehow we need to progress this, and then there might be information about what would be available under a universal basic income. However, we need some simple facts in order to make the case for such a radical change to our system. Those facts are how much the universal income might be and how it would be paid for.

[Ronnie Cowan]

Is the hon. Member aware that Andy Burnham, the Mayor of Greater Manchester, is pushing for a basic income to be trialled in the Greater Manchester area? He seems to understand that by trialling these things and learning from them, we will all be better informed.

[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 .