Agenda item

White Paper Motion (in the name of Councillor Bentley) - Recovery Universal Basic Income

This Council welcomes the Government measures such as the Job Retention Scheme and the Self-Employment Income Support Scheme brought in to provide financial help for individuals and businesses suffering as a result of the economic crisis caused by the Coronavirus pandemic.

The Council recognises that as the Government’s income protection schemes are wound down, individuals who do not return to their previous employment will suffer significant financial loss. Meanwhile, the millions not covered by the Government’s measures will have endured months of hardship. Additionally, the economy will need a demand boost to avoid a prolonged recession and to give businesses the confidence to reopen and begin hiring people again.

Council recognises that the Covid 19 crisis is taking place at a time of climate emergency, and that there needs to be a Green recovery if Leeds City Council is to meet its target of Leeds becoming zero carbon by 2030. Payment of a Universal Basic Income could be an important factor in providing the stimulus needed within that green recovery, for entrepreneurship and green jobs.

The Council believes that the current benefits system is not capable of dealing with the potential large volume of claims that could arise. It is already failing residents in Leeds, with Universal Credit causing hardship to many communities through the combination of low payment levels, payment delays, sanctions and complex bureaucracy.

Therefore, in order to provide financial security for households during the critical post-Covid period, as well as delivering a vital stimulus to the economy, the Council instructs the Chief Executive to write to the Chancellor of the Exchequer and the Secretary of State for Work and Pensions proposing the implementation of a Recovery Universal Basic Income which would be universal, individual and unconditional. 

Additionally, this Council supports in principle a permanent Universal Basic Income, recognising the need for a radical overhaul of the welfare system and the positive impact this would have on poverty alleviation, inequality, well-being, mental health and the effects on the workforce of increasing use of technology and artificial intelligence. 

Council offers to work with government, local authorities, universities, the UBI Lab Network and other institutions to investigate the feasibility of such scheme. With a strong economy, an ambitious Council and a diverse population, Leeds would be an ideal City to choose for the first UBI pilot in the UK. 

 

Minutes:

It was moved by Councillor Bentley, seconded by Councillor Forsaith that this Council welcomes the Government measures such as the Job Retention Scheme and the Self-Employment Income Support Scheme brought in to provide financial help for individuals and businesses suffering as a result of the economic crisis caused by the Coronavirus pandemic.

The Council recognises that as the Government’s income protection schemes are wound down, individuals who do not return to their previous employment will suffer significant financial loss. Meanwhile, the millions not covered by the Government’s measures will have endured months of hardship. Additionally, the economy will need a demand boost to avoid a prolonged recession and to give businesses the confidence to reopen and begin hiring people again.

Council recognises that the Covid 19 crisis is taking place at a time of climate emergency, and that there needs to be a Green recovery if Leeds City Council is to meet its target of Leeds becoming zero carbon by 2030. Payment of a Universal Basic Income could be an important factor in providing the stimulus needed within that green recovery, for entrepreneurship and green jobs.

The Council believes that the current benefits system is not capable of dealing with the potential large volume of claims that could arise. It is already failing residents in Leeds, with Universal Credit causing hardship to many communities through the combination of low payment levels, payment delays, sanctions and complex bureaucracy.

Therefore, in order to provide financial security for households during the critical post-Covid period, as well as delivering a vital stimulus to the economy, the Council instructs the Chief Executive to write to the Chancellor of the Exchequer and the Secretary of State for Work and Pensions proposing the implementation of a Recovery Universal Basic Income which would be universal, individual and unconditional. 

Additionally, this Council supports in principle a permanent Universal Basic Income, recognising the need for a radical overhaul of the welfare system and the positive impact this would have on poverty alleviation, inequality, well-being, mental health and the effects on the workforce of increasing use of technology and artificial intelligence. 

Council offers to work with government, local authorities, universities, the UBI Lab Network and other institutions to investigate the feasibility of such scheme. With a strong economy, an ambitious Council and a diverse population, Leeds would be an ideal City to choose for the first UBI pilot in the UK. 

 

An amendment was moved by Councillor Buckley, seconded by Councillor Stephenson 

 

Delete all after “schemes are wound down” and replace with:

 

“new initiatives will be needed to help protect jobs, boost the economy and give businesses the confidence to reopen and begin hiring people again. However Council is not convinced by arguments advancing the idea of a Universal Basic Income in general, and does not believe they offer a solution to the particular circumstances we now face. At a time when people are being encouraged to go back to work in order to help revive the economy, there is a risk that a UBI would have the opposite effect, disincentivising work and encouraging increasing reliance on the state.

 

“Council instead welcomes the Chancellor’s “Plan for Jobs”, which includes the Job Retention Bonus to help firms keep furloughed workers, the new £2 billion Kickstart Scheme to create hundreds of thousands of new jobs for young people, the £1.6 billion investment to scale up employment support schemes, training and apprenticeships to help people looking for a job, and the £8.8 billion investment in new infrastructure, decarbonisation and maintenance projects, including a £3 billion green investment package that could help support around 140,000 green jobs and upgrade buildings and reduce emissions.

 

“Council calls on the administration to work with government to ensure that the city is well placed to take advantage of all these measures for the benefit of everyone in Leeds.”

 

Motion would read:

 

“This Council welcomes the Government measures such as the Job Retention Scheme and the Self-Employment Income Support Scheme brought in to provide financial help for individuals and businesses suffering as a result of the economic crisis caused by the Coronavirus pandemic.

 

“The Council recognises that as the Government’s income protection schemes are wound down, new initiatives will be needed to help protect jobs, boost the economy and give businesses the confidence to reopen and begin hiring people again. However Council is not convinced by arguments advancing the idea of a Universal Basic Income in general, and does not believe they offer a solution to the particular circumstances we now face. At a time when people are being encouraged to go back to work in order to help revive the economy, there is a risk that a UBI would have the opposite effect, disincentivising work and encouraging increasing reliance on the state.

 

“Council instead welcomes the Chancellor’s “Plan for Jobs”, which includes the Job Retention Bonus to help firms keep furloughed workers, the new £2 billion Kickstart Scheme to create hundreds of thousands of new jobs for young people, the £1.6 billion investment to scale up employment support schemes, training and apprenticeships to help people looking for a job, and the £8.8 billion investment in new infrastructure, decarbonisation and maintenance projects, including a £3 billion green investment package that could help support around 140,000 green jobs and upgrade buildings and reduce emissions.

 

“Council calls on the administration to work with government to ensure that the city is well placed to take advantage of all these measures for the benefit of everyone in Leeds.”

 

A second amendment was moved by Councillor Coupar, seconded by Councillor Scopes;

 

In paragraph one, replace “welcomes” with “notes”. At the end of paragraph one, add “are coming to an end.”

 

At the end of paragraph four, add “Since the start of the pandemic 67,000 residents were claiming Universal Credit in Leeds, an increase of 99%. Council thanks those council services and third sector organisations that provide support for people in these difficult circumstances.”

 

Remove paragraphs five, six and seven and replace with: “This Council offers to work with government, the UBI Lab Network and other partners to establish a more viable solution to guarantee financial security for households during the critical post-Covid period and beyond, including supporting a Universal Basic Income pilot scheme with external funding as part of our ambition to tackle poverty and reduce inequalities across the city.

 

Council requests officers provides a detailed update to the Executive Board within 3 months on the Council’s work to tackle poverty post Covid-19 and options to lobby for changes to national policy.”

 

Full Amended Motion is:

 

“This Council notes the Government measures such as the Job Retention Scheme and the Self-Employment Income Support Scheme brought in to provide financial help for individuals and businesses suffering as a result of the economic crisis caused by the Coronavirus pandemic are coming to an end.

 

The Council recognises that as the Government’s income protection schemes are wound down, individuals who do not return to their previous employment will suffer significant financial loss. Meanwhile, the millions not covered by the Government’s measures will have endured months of hardship. Additionally, the economy will need a demand boost to avoid a prolonged recession and to give businesses the confidence to reopen and begin hiring people again.

 

Council recognises that the Covid 19 crisis is taking place at a time of climate emergency, and that there needs to be a Green recovery if Leeds City Council is to meet its target of Leeds becoming zero carbon by 2030. Payment of a Universal Basic Income could be an important factor in providing the stimulus needed within that green recovery, for entrepreneurship and green jobs.

 

The Council believes that the current benefits system is not capable of dealing with the potential large volume of claims that could arise. It is already failing residents in Leeds, with Universal Credit causing hardship to many communities through the combination of low payment levels, payment delays, sanctions and complex bureaucracy. Since the start of the pandemic 67,000 residents have claimed Universal Credit in Leeds, an increase of 99%. Council thanks those council services and third sector organisations that provide support for people in these difficult circumstances.

 

This Council offers to work with government, the UBI Lab Network and other partners to establish a more viable solution to guarantee financial security for households during the critical post-Covid period and beyond, including supporting a Universal Basic Income pilot scheme with external funding as part of our ambition to tackle poverty and reduce inequalities across the city.

 

Council requests officers provides a detailed update to the Executive Board within 3 months on the Council’s work to tackle poverty post Covid-19 and options to lobby for changes to national policy.”

 

The amendment in the name of Councillor Buckley was declared lost, the second amendment in the name of Councillor Coupar was carried and upon being put to the vote it was

 

RESOLVED – That this Council notes the Government measures such as the Job Retention Scheme and the Self-Employment Income Support Scheme brought in to provide financial help for individuals and businesses suffering as a result of the economic crisis caused by the Coronavirus pandemic are coming to an end.

 

The Council recognises that as the Government’s income protection schemes are wound down, individuals who do not return to their previous employment will suffer significant financial loss. Meanwhile, the millions not covered by the Government’s measures will have endured months of hardship. Additionally, the economy will need a demand boost to avoid a prolonged recession and to give businesses the confidence to reopen and begin hiring people again.

 

Council recognises that the Covid 19 crisis is taking place at a time of climate emergency, and that there needs to be a Green recovery if Leeds City Council is to meet its target of Leeds becoming zero carbon by 2030. Payment of a Universal Basic Income could be an important factor in providing the stimulus needed within that green recovery, for entrepreneurship and green jobs.

 

The Council believes that the current benefits system is not capable of dealing with the potential large volume of claims that could arise. It is already failing residents in Leeds, with Universal Credit causing hardship to many communities through the combination of low payment levels, payment delays, sanctions and complex bureaucracy. Since the start of the pandemic 67,000 residents have claimed Universal Credit in Leeds, an increase of 99%. Council thanks those council services and third sector organisations that provide support for people in these difficult circumstances.

 

This Council offers to work with government, the UBI Lab Network and other partners to establish a more viable solution to guarantee financial security for households during the critical post-Covid period and beyond, including supporting a Universal Basic Income pilot scheme with external funding as part of our ambition to tackle poverty and reduce inequalities across the city.

 

Council requests officers provides a detailed update to the Executive Board within 3 months on the Council’s work to tackle poverty post Covid-19 and options to lobby for changes to national policy.”

 

Supporting documents: