Post by Deleted on Dec 10, 2015 7:08:21 GMT
Proposals for a national basic income are intended to simplify the social security system and encourage more unemployed people to take on temporary work
Authorities in Finland are considering giving every citizen a tax-free payout of €800 (£576) each month.
Under proposals being draw up by the Finnish Social Insurance Institution (Kela), this national basic income would replace all other benefit payments, and would be paid to all adults regardless of whether or not they receive any other income.
Unemployment in Finland is currently at record levels, and the basic income is intended to encourage more people back to work. At present, many unemployed people would be worse off if they took on low-paid temporary jobs due to loss of welfare payments.
Detractors caution that a basic income would remove people's incentive to work and lead to higher unemployment. Those in favour point to previous experiments where a basic income has been successfully trialed.
The Canadian town of Dauphin experimented with a basic income guarantee in the 1970s and the results - both social and economic - were largely positive.
Finnish Prime Minister Juha Sipilä supports the idea, saying: “For me, a basic income means simplifying the social security system.”
The basic income will cost Finland roughly €46.7 billion per year if fully implemented. Kela's proposals are due to be submitted in November 2016.
Authorities in Finland are considering giving every citizen a tax-free payout of €800 (£576) each month.
Under proposals being draw up by the Finnish Social Insurance Institution (Kela), this national basic income would replace all other benefit payments, and would be paid to all adults regardless of whether or not they receive any other income.
Unemployment in Finland is currently at record levels, and the basic income is intended to encourage more people back to work. At present, many unemployed people would be worse off if they took on low-paid temporary jobs due to loss of welfare payments.
Detractors caution that a basic income would remove people's incentive to work and lead to higher unemployment. Those in favour point to previous experiments where a basic income has been successfully trialed.
The Canadian town of Dauphin experimented with a basic income guarantee in the 1970s and the results - both social and economic - were largely positive.
Finnish Prime Minister Juha Sipilä supports the idea, saying: “For me, a basic income means simplifying the social security system.”
The basic income will cost Finland roughly €46.7 billion per year if fully implemented. Kela's proposals are due to be submitted in November 2016.
www.telegraph.co.uk/news/worldnews/europe/finland/12035946/Finland-is-considering-giving-every-citizen-800-a-month.html
What do others think of this system? What are the pros and cons and do you think it could work in the UK?
