Universal basic income: Welsh MPs to consider proposal in benefits inquiry

Supporters of universal basic income say it will stop people falling through gaps in the benefits system

Welsh MPs will take a look at Welsh government plans to trial universal basic income (UBI) as part of an inquiry into the benefits system.

The Commons Welsh Affairs  Committee is seeking evidence on how the pandemic has changed the type and amount of support people need.

Supporters of UBI say paying everyone a sum of money would stop people falling through gaps in the benefit system.

But the UK government has said it would not give people an incentive to work.

Launching the inquiry on Tuesday, the Welsh Affairs Committee said it followed "a period of unprecedented challenge for the benefits system" due to the pandemic.

Emergency payments

It noted that more than 280,000 people in Wales were claiming Universal Credit, up 82% since March 2020.

Up to the middle of April 2021, there were also more than 190,000 Covid-related emergency assistance payments, totalling just under £13m.

The committee added that the benefits system was likely to come under further pressure when key Covid support schemes such as the furlough end in September.

Figures show that 131,900 jobs in Wales were still furloughed in April, with Conwy the local authority with the highest take-up rate at 15% of jobs in the county borough.

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The impact of longer-term help, such as free school meals and council tax reduction, will also be examined by MPs.

They will also consider whether responsibility for benefits, which currently lies with Westminster, should be devolved to the Welsh government.

Committee chairman Stephen Crabb - a former work and pensions secretary - said: "The last year has seen an unprecedented surge in Universal Credit claims across Wales as a result of the lockdown restrictions.

"With new types of welfare support being put in place by UK government during the pandemic and the first minister now pledging to pilot a universal basic income scheme in Wales, this is a timely moment to look at how the benefits system supports families across Wales and how it may change in the future."

The committee is inviting people and organisations to share their views between now and 10 August.