More than 500 young people will be offered a no-strings-attached sum of £1,600 ($1,940) each month for two years from their 18th birthday in a universal basic income (UBI) experiment in Wales.
On Tuesday, the Labour-led Welsh government announced that it will roll out the scheme from Friday, July 1 for “care leavers,” or adults who have spent time living in the care system, away from their families.
But a Welsh Conservative Party politician told The Epoch Times that First Minister Mark Drakeford is taking Wales down an “extreme socialist path at a time when there is a national shortage of workers.”
‘Communist’
Last year, Tory Welsh Parliament member Janet Finch-Saunders criticised the Welsh Labour UBI plan as a “pursuit of a socialist utopia” that would bring the country closer to a “communist state.”“Whilst the First Minister may think that he has the ability to design an experiment that will allow you to test the claims that are made for UBI, every single penny that is invested and minute of time spent by officials on this pursuit of a socialist utopia is simply quite unjustifiable,” she said in the Welsh Parliament.
“In fact, Wales would be a step closer to being a communist state should your concept of giving every person a fixed amount of money every month become a reality,” she added.
Finch-Saunders told The Epoch Times in an email that she was “furious that the hard-working people of Wales are being treated with such contempt.”
“The people and businesses of Wales do not work full weeks and pay taxes to see hundreds of 18-year-olds being paid £19,200 for doing absolutely nothing,” she said.
She added that the Welsh government “is so out of touch” that it is paying 500 young people “more money than staff who play an essential role in everyday life, such as school cooks, teaching assistants, and refuse collectors.”
“Giving free money to care leavers is not the best way to support them. In fact, I suspect that the first minister may have chosen their group for the UBI trial in an effort to try and dilute opposition,” said Finch-Saunders.
“Well, I can tell you now that I remain steadfastly opposed to this policy by Comrade Drakeford. He is taking Wales down this extreme socialist path at a time when there is a national shortage of workers, Britain could be facing a recession, and we are seeing serious inflation increases. This could be exacerbated by putting thousands in people’s pockets without them producing a single produce,” she added.
Cash
In a June debate on the potential merits of a UBI in Westminster, the UK government wrote in a briefing that the most common argument against one is the cost (pdf).For example, a basic income of £100 ($121) a week for each person over the age of 16 in the UK, and £50 ($60) a week for each child, would cost around £316 billion ($384 billion) a year. To compare, total spending on benefits, state pensions, and tax credits in the UK is forecast to be around £250 billion ($300 billion) in 2022–23.
It also added that people’s identity and purpose is often tied up in paid work, so a system “that facilitates a reduction in labour force participation could have negative effects on wellbeing.”
UBI
Speaking in the Welsh Parliament, Labour’s Minister for Social Justice Jane Hutt said that basic income is “a direct investment in these young people and their futures.”“The pilot is not only about supplying money to recipients; it’s vital that, before choosing to participate, care leavers are supported to make informed decisions about their finances and their futures,” she said.
Hutt said that the reason why the Welsh government was focusing on people leaving care was that “we know that too many young people leaving care do face significant barriers to achieving that successful transition into adulthood.”
“So, basic income is a direct investment in a cohort of young people who we want to support so that they can thrive while they secure their basic needs,” she added.
The Epoch Times has contacted the Welsh government for comment.