Labour to back policy giving welfare handouts to EVERY person in the UK but critics say it would cost hundreds of billions
John McDonnell said the party’s next manifesto could include radical plans for a universal basic income, saying it was an idea ‘a lot of people are pressing for’ – despite Canada and Finland axing the policy after trials proved it was too expensive
LABOUR have backed a policy giving welfare handouts to every person in the UK - but critics say it would cost hundreds of billions of pounds.
John McDonnell said the party’s next manifesto could include radical plans for a universal basic income, saying it was an idea “a lot of people are pressing for”.
But his announcement same the same day Canada axed a similar policy after trials proved it was too expensive. Finland also binned the idea in the Spring.
The universal income would replace means-tested benefits with a flat rate paid to all citizens.
Supporters claim it would reduce the bureaucracy involved in means-testing benefits and could also help address future challenges as jobs are replaced by automation and artificial intelligence.
But critics argue it involves giving taxpayers' money to wealthy individuals who do not need it rather than focusing on those who require support.
Academics at the University of Bath say it could cost up to £427billion, more than double the existing welfare bill of around £210billion a year.
But Mr McDonnell said he had recently discussed the idea with former Labour leader Ed Miliband, who was "really keen" on getting a pilot of the scheme in the next manifesto.
Asked if a pilot scheme could feature in Labour's plans at the next election, he told the Independent: "It's one of those things I think we can get into the next manifesto and see, it's worth a try.
"There have been pilots elsewhere. I'm trying to wait for the feedback."
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A working group examining the feasibility of a scheme is being led by Mr McDonnell's adviser Guy Standing.
But in response Tory party chairman Brandon Lewis said: "This handout would cost hundreds of billions of pounds and is a kick in the teeth to hardworking taxpayers, who would have to pay for it through huge tax rises and more borrowing.
“Our welfare system should give people a hand up, not a hand out. Work not only gives people a pay packet, but also a place in our society.”