The most universal benefit of them all

While the UK debates ending universality, economists in America are talking about making income itself universal.

With Labour's decision to push for the end of winter fuel payments for all, Britain has seen yet another step against the principle of universality in benefits this week. But while the tide here is pushing more and more in favour of means-testing every intervention possible, in the US, the opposite debate is being had: should even the largest interventions be universal?

In early May, Mike Konczal wrote an article in the Washington Post proposing a universal basic income (UBI), also called a "citizen's income". The idea is that significant proportions of the social insurance system get replaced with a "poverty-level" income which is given to all, universally and unconditionally. So rather than claiming unemployment benefit when out of work, disability benefit when sick, or a state pension in retirement, you claim a standard sum every month from the age of majority to your death, regardless of your status.

Many of the benefits of a UBI are the same as the benefits of universalising any part of the welfare system: it massively reduces bureaucracy at all stages; it's far easier to get benefits where they need to go; and it removes the stigma of claiming help from the state. For some benefits, even one of those arguments is enough to justify universalising them. So, for example, we don't means test the NHS – among other reasons – because the thought of keeping someone in the emergency room while we check their past six months of payslips is anathema to most people.

But the UBI carries its own additional upsides, by virtue of being so large compared to other benefits. The most important one is that its universality reduces so-called "income traps", points in the tax-and-benefit system where the marginal value of every pound earned drops too low. So, for example, as your earnings rise, you may find that you leave the personal tax allowance, lose working tax credits, and become ineligible for housing benefit all around the same time. That could mean that a job which pays thousands of pounds leads to a take-home pay rise of a tenth of that, giving you a serious incentive not to take it at all.

That problem is also what the Universal Credit is aimed at solving in Britain; but despite the name, it's not a universal benefit, and so it can at best smooth over the problems caused by withdrawal, rather than remove them already.

But Konczal's most interesting point is that there are strong right-wing – or, more accurately, libertarian-right – arguments for a UBI. By removing conditionality of benefits, it also removes a method of state control. It is no longer up to the government, for instance, to determine which types of work experience you can do while still being paid unemployment benefit; nor can they shape society by deciding which types of non-labour activities ought be rewarded – carers, community gardeners, political activist or artists all get the UBI without having to prove their worth.

In fact, as Konczal points out, it's the left which should really be wariest of arguments for a UBI. It has the potential to extend market logic to every reach of society, by equating "being a citizen" with "being paid". That's exactly the sort of thinking Michael Sandel warned against when I spoke to him last month, because, in his words, it "may crowd out attitudes and norms, non-market values, worth caring about".

Konczal's piece sparked a wide debate in the economics community. Despite his strong argument that a UBI ought to be a libertarian idea, many of them opposed it, arguing that handing out a UBI would mean that people would never work, and the government would instantly lose the tax revenue it takes to pay it in the first place.

That argument doesn't quite work; in fact, the understanding as to why that is was the great breakthrough in 19th century economics, the marginal revolution. People tend to make their decisions, not based on absolute levels, but on marginal changes. If you are given a UBI, then you still face the choice as to whether or not to go to work and earn an extra sum of money. And since people working on poverty pay don't tend to decide never to increase their income, it seems likely that a UBI wouldn't discourage much work.

But it would discourage some, because that's the point of it. By removing the link between "having to work" and "starving to death", a UBI would promote a healthier attitude to work, removing the element of fear which forces employees to sell their labour to exploitative employers. Instead, work would occur based on equitable negotiation: if the employee no longer lives in fear that they will be on the streets without a job, their bargaining position is greatly improved.

In the end, it's that outcome which will mean the UBI can never truly catch on among right-wingers – or even the centre-left – leaving the Green Party the only one in the UK to support it. In radically redistributing economic power from capital to labour, it is anathema to the conventional order . That is true despite the fact that elements of it ought to be hugely appealing to people from across the political spectrum. It is freedom-enhancing, bureaucracy-reducing, and in some cases life-saving, but it's also going to remain no more than a thought experiment. That's a crying shame.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear