A new pilot proposal has been launched for a groundbreaking scheme which experts say could eventually end absolute poverty in Greater Manchester, as well as improve the health and wellbeing of millions of people.
The new report outlines a pilot for a Basic Income that could eventually see a regular payment given to everyone in Greater Manchester, regardless of income, wealth or work.
The authors, Northumbria University and campaigners at the UBI Lab Network say if rolled out fully, such a monthly payment would create an ‘income floor’ nobody could fall below, ending absolute poverty in the city for good, improving the health and wellbeing of citizens, and making it easier for those on unemployment benefit to get back into work.
If taken forward, the pilot would initially involve hundreds of people who are homeless or at risk of homelessness in Greater Manchester.
The proposal to pilot the idea has been instigated by UBI Lab Manchester, part of the UK-wide UBI Lab Network, a grassroots group that aims to explore the potential of Basic Income within the city. If taken forward, the pilot would initially involve hundreds of people who are homeless or at risk of homelessness in the area, providing a sense of financial security and creating a platform from which they can start to rebuild their lives.
Matthew Johnson, Professor of Public Policy at Northumbria University, Chair of the Common Sense Policy Group, and one of the authors of the report, said: “At a time in which ambition and vision is required more than ever, Greater Manchester stands out as a beacon of hope for progressive policy. Basic Income is a pragmatic, affordable, feasible and, most importantly, an overwhelmingly popular policy.
“It is popular because it deals with the root causes of today’s challenges: the financial insecurity that affects almost all of us, especially in the north. The proposals within this report are an opportunity for Greater Manchester to lead on national renewal by setting out a fundamentally transformative scheme that will capture Britain’s interest.”
Greater Manchester Mayor Andy Burnham has previously indicated his support for piloting a Basic Income. His 2024 re-election manifesto pledged to bring forward a Basic Income pilot in order to test whether a different, more preventative way of supporting people could lead to better use of public funds. Authors of the report, A Basic Income for Greater Manchester: Plans for a feasible,affordable and popular pilot, have sent their proposal to the Mayor directly, and are calling on him to take their groundbreaking pilot proposal to the Treasury.
The proposed pilot of a Basic Income in Greater Manchester would initially target the region’s most vulnerable citizens: young people from deeply disadvantaged backgrounds who are experiencing homelessness or are at risk of homelessness.
The pilot would run over two years and would see each participant receive £1,600 per month. The cost for this would be £7.68m for 200 recipients, or £3.84m for 100 recipients.
The proposal outlines that the costs to run a pilot could be raised through a combination of central government support, public donations, reallocated service funding from the GMCA itself, and support from philanthropic organisations.
The Welsh Government recently carried out a two-year pilot of a Basic Income for young people leaving care. Each of the 500 participants, all aged between 18 and 20, received £1,600 per month from 2022-2024. Professor Matthew Johnson is part of the team evaluating this pilot. While the full results have not yet been released, preliminary results suggest this intervention has already demonstrated a positive impact on financial stability among an extremely disadvantaged group of people.
Dr Elliott Johnson, Vice Chancellor’s Fellow in Public Policy at Northumbria University, Impact Lead for the Common Sense Policy Group and one of the co-authors of the report who will speak at the briefing session for MPs, explained: “Young people have borne the brunt of ongoing austerity measures since the Global Financial Crisis. Andy Burnham has rightly prioritised preventing homelessness in Greater Manchester. This pilot is an opportunity to deal with that crisis at root – by giving young people the financial security that they need to make longer-term decisions that secure their future.”
Alison Hawdale, co-founder of UBI Lab Manchester, said:
“Greater Manchester is a proud and dynamic part of the world, and for hundreds of years its famously creative citizens have shown themselves to be resilient, resourceful and forward-thinking. But we have chronic problems around poverty, homelessness, mental health and crime which have not gone away, despite decades of action from local and national government, community groups and business. It’s time to try something new. This exciting new proposal offers a roadmap for how we can move forward with such a pilot. We’re hugely excited to get started.”
