Every adult across the UK should receive a basic weekly income of £48, and the move could scrap over 1,000 tax reliefs, according to recommendations made in a new report.
The Labour party welcomed the new independent report, they will study this ahead of drawing up their new manifesto.
Other countries are already trialling a basic income such as Western Kenya, Italy and the Netherlands, Scotland are also considering such a scheme.
Professor Guy Standing, the author of this latest report, told the BBC, “A basic income would be paid in cash, a moderate amount, a basic amount unconditionally to each individual man and woman equally, a smaller amount for a child and the good thing is it would be unconditional and it wouldn’t be means tested and it would be a right, an economic right.”
Professor Standing said the amount will change as funding for a basic income is built up over time.
However, initially the weekly sum would be £48, which would be a “significant amount for many people” he said.
“Now £48 is not a lot for most people but for a lot of people out there they have £20 left at the end of the week after they’ve paid their rent and their food, so this is a significant amount for many people.”
Labour MP and shadow chancellor, John McDonnell said, “This report is an important contribution to the debate around inequality, austerity, poverty and how we establish a fair and just economic system.
“There have been pilots of ‘basic income’ elsewhere and Guy Standing has looked at them and come forward with proposals.
“Whatever mechanism we use, whether ‘basic income’ or another, we have to lead in developing a radical mechanism aimed at eradicating poverty, but also means testing.
“We will be studying the contents and recommendations of this report carefully as we put together our reform policies for the next Labour government.”