Basic Income vs Living Wage

Ed Miliband has put Living Wage back into the spotlight saying that he is going to give firms a 12 month tax break if they pay a living wage to their employees. The tax break would allow employers to make up a third of the cost. To me this seems like a shallow electoral promise. For starters its not really an incentive for employers because it will cost them money in the long run. If they can't see the point of paying a living wage now, why would a 12 month tax break that doesn't cover the cost change their minds now? The end result is that companies will only take it if it benefits them and even if there is very little take-up. Labour will still be able to claim an election promise has been kept. Am I too cynical?

If Ed really wanted to help people he would have a Citizen's Unconditional Basic Income as his party policy. Unconditional Basic Income would provide everyone in the nation with a basic income granted by the government. It would largely replace the means tested benefit system and tax credits and allowances and in eliminating the costly bureaucracy of means tested benefits, more money would go to the people who need it most.

The European Citizens' Initiative for an Unconditional Basic Income is a democratic inititive that if successful will force the european union to explore the options. You can vote now for a basic income here http://basicincome2013.eu/

With a basic income We wouldn't need the government to curry favour with businesses to improve people's lives, the people themselves would have better negotiating power because they wouldn't have to face the uncertainty of applying for benefits and having no income while their application is assessed. They would still have an incentive to work because a minimum wage on top of a basic income would make them far better off.


You probably have lots of questions like how would we pay for it? I'd recommend you have a look at the attached video for some more information but if you don't like video or want to see some proposals for the UK you can have a look at what the citizen's income trust have proposed for the UK their 12 page booklet is well worth a read and has lots of detail.