New research finds Basic Income scheme could save NHS tens of billions of pounds

New research funded by the National Institute for Health and Social Care Research (NIHR) and led by Northumbria University has found that a Basic Income scheme could potentially save the NHS tens of billions of pounds.

Researchers at the Universities of Northumbria, York, Bath and Strathclyde, in collaboration with think tanks Compass and Autonomy, have presented “groundbreaking” evidence on the role that Basic Income can play in dealing with our public health crisis.

A new report called Treating causes not symptoms: Basic Income as a public health measure uses a range of economic and health modelling, public opinion surveys and community consultation to present cutting-edge evidence on the impact of Basic Income schemes.

A basic income is a regular and unconditional cash payment to all individuals designed to reduce poverty, enhance economic security and improve overall well-being. As a result of these potential benefits, researchers have looked at the knock-on effects for the economy and public health.

Economic impact:

• Even a more ‘modest’ basic income scheme (£75 a week, £3,900 a year) would reduce child poverty to the lowest level since comparable records began in 1961 and achieve more at significantly less cost than the anti-poverty interventions of the New Labour governments.
• Child and pensioner poverty down by at least 60 per cent each
• Working age poverty down by between 29 per cent and 75 per cent depending on the scheme
• Inequality down 55 per cent to the lowest in the world under the most ambitious scheme.

According to new polling, the report also found that the British public prefers a more generous Basic Income scheme that significantly reduces poverty and inequality and improves physical and mental health. They want to fund those schemes through new wealth and carbon taxes and increased corporation taxes, but also view small increases in income tax as tolerable.

Matthew Johnson, Professor of Public Policy at Northumbria University, and the project lead, commented: “The findings of this report are clear: there is no obvious alternative to Basic Income that has the same multipurpose impact across society.

“These first indications of public health impact are debate shifting, while evidence on British public opinion present clear pathways to funding through wealth, carbon and corporation tax increases.

“This should encourage administrations, such as in Wales and Greater Manchester, which have expressed support for policies like this.”

By Matthew Neville – Senior Correspondent, Bdaily

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