146
Journal of Poverty and Social Justice • vol 31 • no 1 • 146–162 • © Policy Press 2023
Print ISSN 1759-8273 • Online ISSN 1759-8281 • https://doi.org/10.1332/175982721X16702368352393
Accepted for publication 05 December 2022 • First published online 06 January 2023
policy and practice
Universal Basic Income is affordable and
feasible: evidence from UK economic
microsimulation modelling
1
Howard Robert Reed, howard@landman-economics.co.uk
Landman Economics, UK
Matthew Thomas Johnson , matthew7.johnson@northumbria.ac.uk
Northumbria University, UK
Stewart Lansley , stewartlansley@aol.com
University of Bristol, UK
Elliott Aidan Johnson , elliott.johnson@northumbria.ac.uk
Northumbria University, UK
Graham Stark , graham.stark@virtual-worlds.biz
Open University & Virtual Worlds, UK
Kate E. Pickett , kate.pickett@york.ac.uk
University of York, UK
Critics of Universal Basic Income (UBI) have claimed that it would be either unaffordable or
inadequate. This discussion paper tests this claim by examining the distributional impacts of
three UBI schemes broadly designed to provide pathways to attainment of the Minimum Income
Standard (MIS). We use microsimulation of data from the Family Resources Survey to outline the
static distributional impacts and costs of the schemes. Our key fnding is that even the fscally
neutral starter scheme would reduce child poverty to the lowest level achieved since 1961 and
achieve more than the anti-poverty interventions of the New Labour Governments from 2000.
The more generous schemes would make further inroads into the UK’s high levels of poverty and
inequality, but at greater cost. We conclude by assessing fscal strategies to reduce the up-front
defcit of higher schemes, providing a more positive assessment of affordability and impact than
critics have assumed.
Key words Universal Basic Income • microsimulation modelling • poverty • inequality •
Minimum Income Standard
To cite this article: Reed, H.R., Johnson, M.T., Lansley, S., Aidan Johnson, E., Stark, G. and Pickett,
K.E. (2023) Universal Basic Income is affordable and feasible: evidence from UK economic
microsimulation modelling, Journal of Poverty and Social Justice, 31(1): 146–162,
DOI: 10.1332/175982721X16702368352393
Unauthenticated | Downloaded 02/23/23 02:21 PM UTC