News

Universal Basic Income boosted wellbeing and trust in Finland trial

The results of the two-year experiment also showed increased employment, albeit for an average of just six days, as the policy continues to divide UK leaders

Helsinki

People on a basic income were happier, had greater trust of other people and institutions and were more confident in their ability to take control of their own future, according to the results of the Universal Basic Income trial in Finland.

The biggest basic income experiment of its kind also showed a small increase in employment after 2,000 people were given €560 (£490) every month for two years.

However, people worked for on average just six days more than the control group who did not receive the unconditional cash, although researchers noted that families with children saw employment rates increase over both years of the study.

On the wellbeing front, people who received basic income reported less mental strain, depression, sadness and loneliness as well as more positive perception of their ability to learn and concentrate.

That positive outlook extended to their income and economic wellbeing too, according to Minna Ylikännö, Head of the Research Team at Kela (the Social Insurance Institution of Finland), and they were more likely to find their financial situation manageable.

It was found that a basic income provided the foundation that allowed those on the trial to trust other people and the institutions in society to a larger extent and they were more confident in their own future and their ability to influence. Researchers theorised that this may be due to the basic income being unconditional rather than being subject to sanctions, which in previous studies has been seen to increase people’s trust in the system.

Even getting a small amount of money has a big effect on people’s agency and sense of control, especially those in real trouble

The results for the first year of the trial were released in February last year before today’s release completed the overall picture.

And they arrive at a crucial time when the debate for a Universal Basic Income has hit the headlines once more as campaigners urge the UK Government to adopt UBI to prevent Brits falling into poverty in the Covid-19 crisis. Chancellor Rishi Sunak has repeatedly turned down the idea, citing the expense as well as the time it would take to implement as people have turned to Universal Credit in their droves. More than 1.8 million claims have been made to receive the controversial benefit since March 16.

But the results from Finland will make interesting reading for Nicola Sturgeon. The Scottish Government has been more open to the idea of a Universal Basic Income and has been researching how to make it happen for some time.

Anthony Painter, chief research and impact officer at the Royal Society for the Encouragement of Arts, Manufactures and Commerce, is urging leaders across the UK to adopt the policy.

“Wellbeing is a vital measure of economic insecurity,” he said. The Finnish Basic Income trials results published today show the importance of getting cash to people now. Even getting a small amount of money has a big effect on people’s agency and sense of control, especially those in real trouble, who this experiment focused on.

“The scheme did not have the negative effects on employment; if anything, it was positive – an important rebuke to those who think it would lead to more people being lazy.

“More basic income experiments are needed in the UK. RSA modelling for Scotland’s proposed pilots found an initial basic income of £48 per week would be affordable – largely funded by turning the personal allowance into a cash payment, fiscally progressive for low-and-middle earners, and halve destitution overnight. We need to explore this model being applied across the UK as part of a new social contract for Britain’s recovery after Covid-19 as the furlough scheme is wound down.”

The importance of wellbeing is not lost on The Big Issue. It plays a key role in Big Issue founder Lord John Bird’s Future Generations Bill which aims to make government departments set wellbeing goals that they must stick to in order to build a better Britain for the people who follow.

Celebrated economic powerhouse Rutger Bregman has also led calls for a Universal Basic Income in a piece penned exclusively for The Big Issue as part of our After The Virus series.

Support the Big Issue

For over 30 years, the Big Issue has been committed to ending poverty in the UK. In 2024, our work is needed more than ever. Find out how you can support the Big Issue today.
Vendor martin Hawes

Recommended for you

View all
Care worker faced homelessness as low pay left her with 'nothing' to fall back on
social care/ abbie bowler
Social care

Care worker faced homelessness as low pay left her with 'nothing' to fall back on

Housing crisis: Shared ownership an 'unbearable reality' which has 'failed to deliver', MPs warn
Housing

Housing crisis: Shared ownership an 'unbearable reality' which has 'failed to deliver', MPs warn

Most tenants have never heard of the beleaguered Renters Reform Bill
Renters and the Renters Reform Bill
Renting

Most tenants have never heard of the beleaguered Renters Reform Bill

'Job apocalypse': Up to 8 million Brits risk losing their jobs to AI, government warned
Employment

'Job apocalypse': Up to 8 million Brits risk losing their jobs to AI, government warned

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Here's when UK households to start receiving last cost of living payments
next dwp cost of living payment 2023
3.

Here's when UK households to start receiving last cost of living payments

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know