Money for nothing

Many of us dream about leaving our jobs and enjoying our lives without needing to work.

Supporters of universal basic income (UBI) say it would reduce inequality, assist unemployed people and unpaid carers, and offset the rise of job automation in the modern age.

But how does it actually work? And what's the feasibility of introducing UBI in the UK?

What is Universal Basic Income?

Universal basic income (UBI) is also known as unconditional basic income. It is a form of social security which provides regular and uniform cash payment to people, without means testing or the requirement to work.

UBI has gained worldwide support in recent years, although its origins date back to the 19th Century. It has been endorsed by economists including Joseph Stiglitz and Thomas Piketty, and has supporters from across the political spectrum.

Opponents of UBI say it encourages idleness, and the system is unaffordable. This depends on the level of guaranteed income, whether it is received by citizens or all residents, and which benefits it replaces.

So how does UBI differ from the national living wage (NLW)?

National living wage

The National Living Wage changes on 1st April ever year. From April 2022, for adults over 23 years-old, the National Living Wage in the UK is £9.50 per hour. For those aged 18 to 22 it can ranges from £6.83 to £9.18 per hour. If under 18 or an apprentice it's £4.81.

According to Linda Yueh, adjunct professor of economics at London Business School: "For an hour’s work you should be getting something which is decent, but that doesn’t necessarily guarantee that everyone would have a minimum level of income to live on.

Creating a minimum wage is trying to raise a basic level of income in conjunction with a welfare system and tax credits system. UBI and NLW are similar ideas but the basic income goes further in that you’re trying to make sure everyone has a minimum level of earnings they can live on. I would say that national living wage is probably something slightly closer, something that Britain has been debating,” she says.

INTERACTIVE: UBI

Various Governments around the world are conducting basic-income experiments and feasibility studies. In Britain, discussions on how the UK Government might fund such a scheme include the potential to dismantle the current benefits system, increasing income tax and VAT and introducing major cuts in other forms of Government spending.

How have different countries responded to universal basic income proposals? Click or tap on the interactive map to find out.

WATCH: UK Parliament - MPs debate UBI

With the potential to lift many people out of poverty, universal income sounds attractive. But could it upend society and create chaos to the world of employment and our welfare state?

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