Are We On Step Closer to Universal Basic Income?

Are We On Step Closer to Universal Basic Income?

UBI or Universal Basic Income, is something that has been around and considered in various forms for a few years now. Many feel it will end poverty in its current form, and raise the standard of living for many. However, it is not without its faults.

So what is UBI and how does it work?

Universal Basic Income

Universal Basic Income is just what it says it is, a guaranteed universal income for all. A monthly “wage” if you wish, paid to all who live in the country, city or town that has set this plan up.

Everyone regardless of if they work or not receives a monthly amount of money. If the UBI is set at £4800 a year, then each person receives £400 a month, tax free, and again regardless of if they are working or not.

For those that are working, the extra money may be something they use to save, or to be able to raise their lifestyle, like having a new car, or a more expensive place to live.

For those who are not working, UBI will add to or replace certain benefits to also make a difference in that person’s living or lifestyle.

It is free money given to everyone, although some have proposed this free money to be given to those age 55 or younger, or to those who meet a certain criteria.

However you look at it, UBI in its simplest form is just a set amount of money given to all.

It is easy to see the benefits of this, the economy will be boosted as many of us will spend the extra cash we get each month. Injecting the money into the economy benefits us all.

But what about the downsides of UBI?

Does it reinforce those who are not working to continue not working. Many argue it does. There is no incentive to work if you know you are going to get free money each month.

The fine line here is that UBI is not really enough to live on, so one would still need to work, or receive certain benefits.

Universal Basic Income is not new or something just being looked into here in the UK. Countries around the world have looked into this, and some have begun pilot programmes to see how it will work out, and to iron out any wrinkles in the plan.

Here in the UK, we may be one step closer to UBI as the city of Liverpool is being looked at as a possible city to pioneer this radical approach.

One of Liverpool’s Councillors, Ann O’Byrne, is a proponent of this new plan, and has stated,“Last year Myself and Cllr Patrick Hurley submitted a council motion calling on Government to introduce a Universal Basic Income. Also calling on shadow chancellor John McDonnell to include Liverpool in any UBI pilot proposals.”

“We met with John at the launch of the UBI report in London and proposed Liverpool as one of the pilot areas and were delighted when this was announced a few days later.”

“When we win the next General election the Labour Finance team will begin to roll out the pilot areas.”

She adds, “It’s so clear how transformational UBI will be. By providing a safety net to every person this would reduce inequality and poverty, reduce stress and anxiety, it would enhance economic security, enable families to plan for their future, it would also dramatically reduce the number of people on means tested benefits”

“As a feminist, this would transform the lives of so many women. There are more women than men in very low paid, insecure work, often doing more than one job to keep their families going”

“This safety net would enable women the security of finding more secure work without the fear of destitution. It also allows people setting up small businesses, social enterprises and cooperatives, the majority of whom are women in Liverpool the chance to grow and develop their enterprises without having to take on other jobs just to live.”

“I am really excited about this opportunity for Liverpool to show the rest of the country how successful UBI can be for our citizens and for the economy, ahead of this being rolled out nationwide”

Not much has been said about how the project will be funded, or if any taxes would change or be increased.

So for now nothing is moving forward, but we may be one step closer to UBI in the future.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.