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<p>We are aware of experiments in universal basic income (UBI) around the world and
we do not believe there is a case for UBI. We believe Universal Credit is the right
approach for the UK because it simplifies the benefit system, promotes and incentivises
work, including progression in work, and provides targeted support to those in most
need in a way that is affordable.</p><p> </p><p>In February 2018 the OECD concluded
in <a href="https://read.oecd-ilibrary.org/economics/oecd-economic-surveys-finland-2018_eco_surveys-fin-2018-en#page45"
target="_blank">its survey of the Finnish Economy</a> that the complexity of the current
benefits system in Finland was an obstacle to stepping into work and that the basic
income experiment, whilst possibly enhancing work incentives, may increase poverty
and would require increasing income taxation by nearly 30%. More recently, findings
from the evaluation of the Finnish basic income experiment show some improvement in
perceived wellbeing, but that it did not increase the employment level of the participants
in the first year of the experiment. The OECD also developed a scenario for Finland
inspired by the UK’s Universal Credit (UC). They found that this ‘would consistently
improve work incentives and reduce complexity, with limited changes to the income
distribution and limited fiscal cost.</p><p> </p><p>This <a href="https://oecdecoscope.blog/2018/02/28/why-would-a-universal-credit-be-better-than-a-basic-income-for-finland/"
target="_blank">OECD blog</a> post is particularly useful on the OECD’s work to compare
UBI and UC.</p>
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