NEXT week the Scottish Parliament will debate the SNP government’s Social Security Bill, expertly led by Jeane Freeman. The new Scottish Social Security system will be limited in scope, with 85 per cent of welfare spend still controlled by Westminster.
It will, though, be person-centred and designed to support those in need, not punish them. It gives us the opportunity to choose a different path.
Some day, Scotland will gain full control of welfare powers. We need to do the work now to design the system we want for the future.
This week the Parliament considered automation, and the future impact of artificial intelligence on the labour market.
The accelerating pace of innovation will mean an end to the concept of a job for life. Old careers will be replaced by new ones that don’t yet exist.
There will be a need for retraining on a massive scale. And there will be a need to support individuals through this process in the most effective and efficient way.
The concept of a Universal Basic Income (UBI) – in which everyone receives a minimum payment from the state regardless of whether they are in work or not – can address both problems.
Delivering a humane alternative to DWP sanctions and helping drive growth in Scotland’s economy, it will enable citizens to better embrace the rapid technological changes we face in the coming years.
UBI pilots are being trialled in four local authority areas across Scotland, as well as internationally, and the results will be keenly observed.
Free from the conditionality and rigidity of the DWP regime, UBI has the power to smooth transition in and out of work.
The security of a guaranteed income can be a driver of entrepreneurship and creative industries, already a growth sector in Scotland’s economy.
The key focus of UBI is that people can take advantage of opportunities offered to them without being restricted by the bureaucracy of the existing welfare state. A guaranteed income means a guaranteed place to live, which for some people will help to smooth the transition from benefits into work.
Observed effects in early pilots of UBI have shown recipients working more hours and earning additional income, with growth in sectors like scientific research, which has considerable technological spillovers in the rest of the economy. UBI has also shown particularly positive results for women, older workers and disabled people. If we are to build an inclusive economy for stable growth in the future, UBI seems like an idea whose time has come.
Over the coming weeks I’ll be setting up a cross-party group on basic income in the Scottish Parliament. This will give a forum for the different initiatives and organisations working in this space to come together and share ideas. There, they can learn from international experience, and to prepare Scotland for when we have full powers over our welfare system, and the ability to use it to support individuals, and our economy, to maximise their potential.
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