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Politics

Universal Income plans depend on Westminster

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MARK DRAKEFORD’s announcement that the Welsh Government plans to trial Universal Basic Income in a few locations in Wales captured headlines in online media.

The First Minister was variously said to have ‘hinted’ at a trial or announced a trial would take place.

However, nobody should have been surprised by the First Minister’s announcement.

Not only was the policy contained in Labour’s Manifesto for May 6’s election – a bit more than ’a hint’ – but also the principle of holding a trial in Wales was enthusiastically passed by the last Welsh Parliament in September last year. It was a policy in Plaid Cymru’s election manifesto and Labour’s; so, whether Labour went it alone in Government or was in partnership with Plaid Cymru, a trial was on the cards.

WG KNOWS WESTMINSTER HAS THE FINAL WORD

However, whether the Welsh Government can carry out a trial is beyond its immediate control.

Headlines that said the Welsh Government WILL carry out even limited Universal Basic Income trials are also jumping the gun.

When the Senedd debated a motion brought forward by Jack Sargeant MS on September 30, 2020, here is what the Finance Minister Rebecca Evans had to say about it: “The Welsh Government would be open to such a trial taking place in Wales, but we have to be realistic that such a trial would not be possible without the active cooperation of the UK Government, and this is because of the interaction of universal basic income with the tax and benefit system. 

“If such a trial were offered, we would also require that conditions were met to ensure that the Welsh Government and this Senedd were able to play a significant role in the design, governance and accountability of any scheme. 

“Were the Welsh Government to make payments to individuals without the cooperation of the UK Government, this could simply result in them being ineligible for existing benefits or paying more in tax. 

“Aside from the fact that this would not then be a proper test of the effect of an unconditional payment, it would result in the transfer of resources from the Welsh Government to the UK Government. 

“And, sadly, our recent experience of the UK Government’s approach to the taxation of our payments to social care workers doesn’t suggest that we should expect their active cooperation.”

In short, the Welsh Government needs Westminster’s ‘active cooperation’ to make a trial possible.

Without Westminster’s cooperation, those who get the Universal Basic Income could (are almost certain to) lose all of their entitlements to other benefits, tax credits, and other means-tested benefits. They could also have to pay tax on it.

WHAT IS UNIVERSAL BASIC INCOME?

Universal Basic Income is not a new idea. Its long history stretches back to antiquity and has been a feature of both romantic and progressive political theory for centuries.

At its simplest, Universal Basic Income does away with a raft of welfare benefits. It substitutes them with a single payment of a fixed amount.

Schemes that guarantee a basic income, short of enough to live on, exist in a few US states and a handful of national economies. However, those are more of an income floor for those who are otherwise dependent on welfare benefits. They are not an actual Universal Basic Income.

A national trial in Finland ended after two years with no definitive finding of better outcomes for those who received UBI over those who did not.

The Covid pandemic increased interest in the idea of UBI in continental Europe. At the same time, the US used a series of relatively modest income replacement initiatives to stop people’s descent into poverty (or into deeper poverty). 

The UK’s furlough scheme was – essentially – a basic income guarantee but not genuinely universal in nature. 

A major multi-national academic study published in 2017 found that UBI probably improved some health outcomes and increased the likelihood of children attending school. 

However, the same report also concluded the evidence for positive outcomes from UBI-type schemes was ‘very uncertain’.

THE COST TO WALES

The main deterrent to a truly Universal Basic Income is cost.

• If a full universal basic income were paid in Wales to all working-age adults and set at the level of the official living wage, the cost would be around £35 billion a year. 

• If set at the level of the real living wage, the cost would be around £40 billion. 

• For illustration, those figures are around twice the size of the Welsh Government’s budget. As a further comparison, income tax in Wales raises in total just over £5 billion. 

• Of course, the costs could be much reduced if universal basic income were paid at a lower rate. However, payment at a lower rate would reduce its attractiveness.

Those last four points are not our own words. They are the Welsh Government’s position as set out in 2020 by its own Finance Minister.

Nothing has changed those figures since September 30, 2020.

They demonstrate the prohibitive and unsupportable cost of UBI to Wales without massive and systemic change across the whole UK.

SCOTCH MIST

As an illustrative example of the timescales and complexity of introducing even a pilot scheme, we only need to look at Scotland.

In September 2017, the Scottish Government announced it would support local authority areas to explore a Citizen’s Basic Income Scheme by establishing a fund to help regions to develop their proposals further and establish appropriate testing. 

The funding offered was £250,000 over the two financial years 2018/19 and 2019/20. 

Four local authority areas: Fife Council, City of Edinburgh Council, Glasgow City Council and North Ayrshire Council, worked together to research and explore the feasibility of local pilots of Basic Income in Scotland. 

Notlaunch a basic income. Explore its feasibility.

Over three and a half years since the Scottish Government’s announcement, there is still no UBI trial in Scotland.

Putting such a scheme in place depends, yet again, on Westminster’s cooperation.

A report on the progress of the feasibility study notes’ any pilot [must] have the necessary support to influence the future of national policy and the role of Department of Work and Pensions (DWP), HM Revenue and Customs (HMRC), HM Treasury and the NHS will be vital in the design and implementation of a Basic Income pilot.’

Three years to design and complete a feasibility study into a limited trial in four local authority areas in Scotland combined with the need to wait for Westminster approval does not suggest a quick fix.

And if it’s not a rapid process in Scotland, it will scarcely be quicker in Wales.

 

News

Accidental deaths in Wales rise by 43% as calls grow for urgent action

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More than 1,200 lives lost each year as charity warns of growing public health crisis

ACCIDENTAL deaths in Wales have risen by 43% over the past decade, with more than 1,200 people now dying each year, prompting calls for urgent action from the next Welsh Government.

New figures released by the Royal Society for the Prevention of Accidents (RoSPA) show that Wales now has a death rate 22% higher than the UK average, with preventable harm placing increasing pressure on the NHS and disproportionately affecting poorer communities.

Falls remain the leading cause of accidental death, accounting for nearly half of all fatalities. People in Wales are around 24% more likely to die from a fall than those elsewhere in the UK.

RoSPA has warned that the situation represents a growing public health crisis, as it launches its Stronger, Safer Wales manifesto ahead of the next Senedd election.

The charity is urging ministers to treat accident prevention as a national priority, arguing that many deaths could be avoided through relatively simple and low-cost interventions.

Accidental harm is also linked to a range of other risks, including rural road collisions, accidental poisonings, machinery incidents, and dog-related injuries.

The wider impact is significant, with preventable accidents costing the NHS billions, reducing workforce participation, and deepening inequality across Wales.

RoSPA is calling for a range of measures, including improved home safety standards, compulsory water safety education in schools, and stronger road safety interventions.

Among its proposals are mandatory eyesight tests for drivers every three years, better road markings to protect motorcyclists, and tighter regulation of unsafe or counterfeit products sold online.

The charity also wants to see national home safety programmes introduced to support vulnerable households, along with clearer responsibilities for local authorities in managing water safety risks.

Becky Hickman, Chief Executive of RoSPA, said the figures should act as a wake-up call for policymakers.

She said: “Wales is facing a clear and escalating crisis of accidental deaths, and the evidence shows the situation is worsening year on year.

“Behind every statistic is a life that could have been saved with practical, proven interventions.

“We are calling on the next Welsh Government to make accident prevention a national priority, because coordinated action will save lives, reduce inequalities and relieve pressure on the NHS.”

She added: “Accidents are not inevitable. With strong leadership and consistent standards across Wales, we can significantly reduce preventable harm.”

RoSPA says tackling the issue will require coordinated action across government, emergency services, local authorities and industry, but insists that the solutions are both achievable and cost-effective.

The charity’s manifesto is intended to shape future policy in Wales, with a focus on reducing avoidable deaths while easing pressure on overstretched public services.

 

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Business

Pembroke South Quay boat shed expansion plans submitted

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been submitted to county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, seeks permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement says: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It adds: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It goes on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it adds: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

The application will be considered by county planners at a later date.

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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Community

First person of colour to be elected mayor of Haverfordwest

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A PEMBROKESHIRE town council will soon have its first-ever person of colour as mayor, and its youngest mayor in a century.

Haverfordwest Town Councillor Randell Iziah Thomas-Turner, aged 37, is to become mayor this May.

Cllr Turner said: “Tonight [March 19], I had the honour of accepting the nomination as mayor-elect — a moment that will forever stay with me.

“In doing so, I am humbled to be making history as the first mayor of colour in Haverfordwest and the youngest mayor in a century. This is not just my achievement, it belongs to every person who believes in progress, representation, and the power of community. This is a new chapter for our town — one built on unity, opportunity, and hope.

“My mayor-making will take place this May, and I cannot wait to officially step into the role and begin serving the people of Haverfordwest with pride, passion, and purpose. Haverfordwest is the best in the West — and together, we are just getting started.

“Diversity is not a challenge to overcome, but a strength to embrace. When people from different backgrounds, experiences, and perspectives come together with respect and openness, we unlock new ideas, stronger solutions, and deeper understanding.”

It’s a double celebration for the Thomas-Turner family.

Wife, and fellow town councillor, Dani, has been voted as sheriff of the town for the second-year-running, the first woman to serve as sheriff for two consecutive years.

“The coming civic year will be one to watch as my husband Councillor Randell Izaiah Thomas-Turner is becoming the first mayor of colour in Haverfordwest’s history,” said Cllr Dani Thomas-Turner, adding: “It’s going to be a year of history and memory making for sure.”

 

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