Pros and cons of universal basic income: solution to unemployment or too expensive?

​What is universal basic income?

​Universal basic income (UBI) is a system in which every adult receives a set amount of money on a regular basis. This payment is unconditional, meaning it does not depend on the recipient's income, employment status, or any other criterion.

Universal– to everyone

Basic– to cover everyday expenses

Income– regularly, for people to spend how they wish.

UBI has been an interesting and controversial topic of conversation over the past few years, with various trials and studies conducted to evaluate its potential impact. While we may be a long way off from this being considered in reality, let’s look at some of the pros and cons of introducing this concept.

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Pros of universal basic income

Reduce poverty

One of the main arguments in favour of UBI is its potential to reduce poverty and economic inequality. A 2022 study by the University of York found that a UBI model could cut poverty by more than half. This would be achieved through tax adjustments and guaranteed weekly payments, providing a stable income for everyone. This stability could lead to a more robust economy, increased consumer spending, more job opportunities, and a healthier market overall.

Increased consumer spending

With more disposable income, people would likely spend more, stimulating demand for goods and services and benefiting businesses across various sectors. This increased spending could also lead to higher tax revenues, which could be reinvested into public services and infrastructure.

Empowering workers

UBI would offer a safety net, reducing the pressure on individuals to accept low-paying or precarious jobs. This could lead to higher job satisfaction and productivity, as people would be more likely to pursue jobs that align with their interests.

Improve workplace conditions

It would also encourage businesses to enhance their working conditions by shifting the power dynamic to the employees. With a guaranteed income, workers would no longer be compelled to stay in jobs solely for financial reasons, allowing them the freedom to leave roles with poor working conditions.

This shift in bargaining power would encourage employers to enhance job quality, offer higher wages, and create more supportive work environments to attract and retain employees. Consequently, businesses might need to implement more employee-focused policies, such as flexible working, improved benefits, and a stronger emphasis on work-life balance, to stay competitive in the labour market.

Innovation and entrepreneurship

Many people hesitate to start their own businesses due to fear of failure and financial risks. However, UBI could provide the financial stability needed to encourage entrepreneurship and innovation, potentially resulting in economic growth for the country. This could lead to the creation of new industries and job opportunities, further boosting the economy.

Foster education and societal benefits

Having a steady income would encourage more individuals to pursue further education and training, culminating in a more educated and skilled population. This increase in educational attainment can have numerous positive effects on society, including:

Higher civic engagement: an educated population is more likely to participate in civic activities such as voting, volunteering, and community involvement, fostering a stronger democratic process and community cohesion.

Enhanced critical thinking and creativity: education cultivates critical thinking and creativity, which are essential for technological innovation and economic growth.

Reduction in poverty and inequality: education is a powerful tool for breaking the cycle of poverty. By providing individuals with the skills and knowledge needed to secure better-paying jobs, UBI can help reduce income inequality and improve overall economic stability.

Improved public health: educated individuals are more likely to make informed health choices, meaning lower rates of chronic diseases and improved overall public health.

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Cons of universal basic income

High cost

Implementing UBI would be extremely expensive, requiring significant tax increases and reallocation of public spending. While it's challenging to estimate the exact cost, one analysis projected a gross cost of $631 billion – which includes the UBI payments themselves as well as the cost of integrating it into the existing tax and benefits system. Therefore, many critics argue that for this reason, UBI is not sustainable or even feasible.

Decreased motivation to work

Critics argue that UBI could reduce people's incentives to work, prompting higher unemployment rates. They fear that with a guaranteed income, people might choose to work fewer hours or not at all. If this were the case, higher unemployment rates could negatively impact economic growth due to less taxable income.

Those who do continue working while receiving UBI might be less motivated to perform at their best. With their basic financial needs met by UBI, the urgency to excel and advance in their careers could diminish and we could see reduced effort and productivity.

Challenges for low-wage industries

Industries relying on low-wage labour might face increased wage demands, as workers with a financial safety net might be less willing to accept low-paying jobs. This could cause higher operational costs and potentially drive businesses to automate more processes.

Inflation

Increased disposable income could generate higher spending, driving up demand and prices, resulting in inflation. This could erode the purchasing power of the UBI payments, potentially negating some of the benefits.

Potential inequality

While UBI aims to reduce poverty and inequality, some argue that providing the same payment to everyone wouldn't solve inequality but merely shift the goalposts. Critics suggest that a more targeted approach might be necessary to address the specific needs of different groups within society.

The debate around UBI is far from settled, and its implementation would require careful consideration and robust policy design. As we move forward, it's important to engage in thoughtful discussions, consider diverse perspectives, and explore pilot programmes to better understand UBI's real-world impacts.

Ultimately, the question remains: can UBI be the transformative solution we need to fix the unstable labour market, or will it prove too costly and complex?

If you are looking for a talented professional to join your team, or seeking a new employment opportunity yourself, get in touch with a specialist consultant today.

​When employing staff, annual leave is often seen as a ‘given’ – a perk that is just considered standard practice. You reward your employees with paid time off – that works right?

Unfortunately, an increasing number of employees across the UK,for example, are not making the best use of their entitlement. According to research by HR software provider Access PeopleHR, there was a 7.7% fall in the annual leave taken by UK workers between 2022 and 2023 across 18 different industries.

Annual leave is not merely a statutory requirement; it’s a strategic asset that can inspire and motivate employees – positively impacting your organisation.

The benefits to you as an employer

As we all know, you as an employer have a duty of care to protect the health, safety and wellbeing of your employees.

You might view annual leave as a cost to your business, but in reality, encouraging employees to take their full entitlement can bring numerous benefits to your organisation.

Increased productivity

Encouraging employees to take time off can significantly boost productivity. Now this may seem unusual at first, but well-rested employees are more efficient and effective. When employees take regular breaks from work, they return with improved focus and energy.

This break from routine tasks allows them to approach problems with a fresh perspective, often leading to innovative solutions, increased output, and a fresh sense of purpose.

Employees who take a large proportion of their annual leave entitlement are often less likely to experience fatigue and stress that could end up leading to mistakes and errors. In the long term, investing in your employees' rest can lead to a more resilient and productive workforce.

Reduced risk of employee burnout

Burnout is a growing concern– with 82% of employees at risk of some form of burnout in 2024. It can lead to decreased performance, increased absenteeism, and higher turnover rates. Encouraging employees to take annual leave can help to mitigate this risk by providing them with the opportunity to recharge and disconnect from everyday work pressures.

Helping employees embrace their annual leave may help reduce the likelihood of experiencing chronic stress, a leading cause of burnout. By promoting a culture that values rest and recuperation, you can help ensure your employees remain engaged and committed to their roles.

It’s more important than ever that people take time off to rest and recharge – so that they can come back stronger than ever.

Improved mental and physical health

We want employers to prioritise both employee wellbeing and productivity, and taking annual leave can play a vital role in maintaining the mental health of employees. Time away from work can reduce stress, improve mood, and boost overall life satisfaction.

Employees who feel mentally and emotionally healthy are more likely to contribute positively to the workplace upon their return to work. They exhibit better problem-solving skills, can enhance their creative thinking, and are generally more motivated.

Heightened employee satisfaction

Employee satisfaction is closely linked to retention rates and overall company morale. Encouraging employees to take their annual leave demonstrates that you value their work-life balance. This can lead to higher levels of job satisfaction and an increased sense of loyalty.

Those who feel supported in their need for rest and personal time are more likely to speak positively about their workplace, reducing turnover and, in turn, attracting top talent. Satisfied employees are also more engaged and motivated, creating a positive feedback loop that benefits the entire organisation from top to bottom.

Ultimately, it’s the duty of managers to help their teams book time off, whether it’s through regular reminders or implementing a simple and efficient booking system. Companies need to take action and discover why employees may be reluctant to take time off, to put strategies in place to support them. It’s also essential that you have a clear view of any requests that come through from your team so that you can manage them promptly.

Alternatives for those who struggle to take their full entitlement

While it’s ideal for employees to take their full annual leave, it’s not always possible. Some employees just don’t want to take it – and that’s fine.

Here are some alternatives to ensure they still get the rest and recovery they need:

Carry forward holiday leave –allow employees to carry over at least some of their unused leave to the following year. This provides flexibility and ensures they don’t lose their entitlement. This can be particularly useful during busy periods when taking time off is challenging.

Time off in lieu (TOIL) –offer additional time off to compensate employees who work extra hours, which can help to compensate for unused leave and give employees some much needed time off at a later date.

Flexible working hours –allow employees to adjust their work hours to accommodate personal needs. Compressed workweeks or staggered hours can help employees manage their time better, reduce stress, and improve work-life balance, even if they can’t take extended periods of time off.

Frequent breaks in the day –encourage short breaks throughout the day to help employees recharge and maintain their focus. This could be between meetings, after they’ve finished a project, or ticked something off their to do list, making it easier for employees to maintain productivity levels even without taking long holidays.

Final thoughts

In most businesses, communication which encourages employees to take time off is key. Having an easy and simple method to book time off, usually via a time management system that allows someone to submit leave for approval to management and HR, is essential.

This can make all the difference and encourage a healthier attitude towards requesting holiday, especially if the system being used is fast, efficient and accessible to all employees.

If you are looking for a talented professional to join your team, or seeking a career change, get in touch with one of our specialist consultants today.

​If you are looking for your next position in the science industry, it is important to optimise and tailor your CV to give yourself the best possible chance of securing your dream role.

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[Full Name]
[Home Address]
[Contact Number] • [Email Address]

Personal Statement

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[College/School Name]
[Date M/Y– Date M/Y]

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Skills

This section is useful to clearly outline the laboratory/scientific skills you’ve gained at university or in industry. Include even minor relevant skills to increase your chances of being discovered in a resumedatabase search.

Work experience
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[Job Title], [Company Name] [Location]
[Date M/Y- Date M/Y]

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Undertook a [course] in order to improve my [skill].

References

References are available upon request.

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