Politics

Universal Income plans depend on Westminster

Published

5 years ago

May 21, 2021

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

Kurtz calls on Labour MPs to back release of Mandelson papers

Published

9 hours ago

February 4, 2026

Staff Writer

Opposition motion follows Epstein-linked document disclosures

A SENEDD Member has called on Labour MPs to support a Conservative Opposition Day Motion demanding the release of papers linked to Peter Mandelson’s appointment as the UK Ambassador to the United States.

Samuel Kurtz said the motion follows the publication of new files and photographs involving Lord Mandelson, which were released as part of a United States investigation into the disgraced and convicted child sex offender Jeffrey Epstein.

Speaking out, Mr Kurtz said that during Prime Minister’s Questions, the Prime Minister admitted he was aware of Peter Mandelson’s ongoing relationship with Epstein at the time of his appointment.

“That means the Prime Minister knowingly appointed Peter Mandelson to one of the most important diplomatic roles in government despite his links to Epstein,” he said. “This raises serious questions about the Prime Minister’s judgement.”

Mr Kurtz went on to accuse the Prime Minister of attempting to prevent transparency over the appointment process.

“Now, instead of being open and transparent, the Prime Minister is attempting to block the release of documents relating to Mandelson’s appointment in order to protect his own position,” he said.

He warned that Labour MPs who oppose the motion would share responsibility for withholding information, adding: “If Labour MPs support blocking the release of these papers, they will be complicit in covering up the process and judgement that led the Prime Minister to appoint Peter Mandelson as Ambassador, despite his friendship with Jeffrey Epstein.”

News

Welsh peace campaigner removed from court during Palestine protest case

Published

10 hours ago

February 4, 2026

Tom Sinclair

Concerns raised over use of terrorism laws against silent sign-holders as Welsh activist among those ejected from London hearings

A WELSH peace campaigner was among several protesters removed from court by security staff this week as plea hearings continued for people charged under terrorism legislation for holding pro-Palestine signs.

Angie Zelter, aged 74, from Knucklas, appeared at Westminster Magistrates’ Court in London on Monday as part of mass proceedings linked to the Government’s ban on Palestine Action.

Campaigners say hundreds of people across the UK – including some in Wales – have been charged under Section 13 of the Terrorism Act 2000 after quietly holding handwritten signs reading: “I oppose genocide. I support Palestine Action.”

Zelter, a long-time anti-war activist and founder of Trident Ploughshares, attempted to read a prepared statement criticising the prosecutions before being escorted from the courtroom, according to supporters.

She told the court she did not accept being labelled a terrorist for what she described as peaceful protest and opposition to the war in Gaza.

Outside the building, fellow campaigners said she had sought to argue that international law and freedom of expression should protect non-violent dissent.

Also removed from the hearing was Tim Crosland, co-founder of Defend Our Juries, who said he had tried to raise legal objections to the charges before being asked to leave.

Arrests nationwide

Organisers of the “Lift The Ban” campaign claim nearly 3,000 people have been arrested across Britain since late 2025 for taking part in silent vigils, with several hundred now facing prosecution. The offences carry a maximum sentence of six months in prison.

The group argues the legislation is being used to criminalise peaceful protest. It is calling on the Government to lift the ban on Palestine Action and to change its stance on military cooperation with Israel.

However, ministers have defended the proscription, saying the organisation has been linked to criminal damage and disruption at sites connected to defence manufacturing.

Welsh perspective

While most hearings are taking place in London, campaigners say demonstrators in Wales have also taken part in sign-holding protests.

Civil liberties advocates have warned that applying terrorism laws to non-violent protest risks setting a troubling precedent.

For many in mid Wales, the sight of a pensioner from rural Powys being removed from a courtroom has sharpened debate over where the line lies between legitimate protest and criminality.

Further hearings are scheduled in the coming weeks, with more defendants from across the UK expected to appear.

Business

Bid to convert office space into chocolate factory, salon and laundrette

Published

17 hours ago

February 4, 2026

Bruce Sinclair - Local Democracy Reporter

A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners

In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.

A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.

For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”

It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.

The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.

“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.

“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.

“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”