Deputy PM rejects call to engage with £1,600 universal basic income trial

07 June 2023 , 12:13

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It emerged earlier this week that 30 participants could be paid £1,600 a month under the first trial of a universal basic income scheme in England (Image: Getty Images/Tetra images RF)

The Deputy Prime Minister has rejected a demand for ministers to engage with universal basic income trials that are set to give a group of people £1,600 a month.

SNP MP Ronnie Cowan called on ministers to "wake up to the reality" that workplaces will need to be "drastically overhauled" because of "the progress of the gig economy and the acceleration of artificial intelligence".

In a passionate PMQs exchange, the MP for Inverclyde pleaded with Deputy PM Oliver Dowden to engage with the universal income pilots "so we can constructively assess the pros and cons".

But Mr Dowden - who is standing in for Rishi Sunak while he is on a trip to the US - rejected the call as he said the government has "never been convinced about the case for a universal basic income".

Oliver Dowden is standing in for Rishi Sunak while he is on a trip to the US (PA)

It emerged earlier this week that 30 participants could be paid £1,600 a month under the first trial of a universal basic income scheme in England.

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They could receive the lump sum without any conditions attached to see how it affects their physical and mental health.

Those in favour of the scheme have argued that universal basic income can help tackle poverty, while critics have suggested it will be too costly.

Other countries including Iran, India, Canada and parts of the United States have also tested out similar trials.

In the PMQs exchange, Mr Cowan asked: "Deputy Prime Minister, this week we heard plans for two universal basic income pilots in England. There have been similar schemes planned for Scotland, Wales and Northern Ireland.

"With the progress of the gig economy and the acceleration of artificial intelligence, it's clear that the working environment will need [to be] drastically overhauled.

"Will this government wake up to the reality of the situation and instruct both the DWP and HMRC to engage with these pilots so we can constructively assess the pros and cons and what to safeguard [for] a less precarious future for the next generation?"

Mr Dowden responded: "The government and I have never been convinced about the case for a universal basic income. We're not alone in that. It's also the position of Paul Johnson at the IFS.

"I think a much better solution is to create more jobs, which this government has done, and cut taxes on working people, which is what this government has done. That is the root for prosperity for people up and down the country."

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Sophie Huskisson