New Basic Income microsimulation research published

Basic Income expert Malcolm Torry has recently published new microsimulation research on Basic Income schemes. In his latest paper, published with the Centre for Microsimulation and Policy Analysis (CeMPA), Torry proposes three schemes that fit certain feasibility criteria that are considered necessary to make any scheme politically feasible to implement. Among these are that the scheme be revenue neutral and that it does not have a negative impact on those on lower incomes.

The paper proposes two such feasible Basic Income schemes for the UK as a whole and one for a Scottish pilot. This follows the publication of the Scottish Basic Income pilot feasibility report in 2020.

One change from previous studies is that one of the feasibility requirements is now the retention of some meaningful Income Tax Personal Allowance, rather than eliminating altogether. This is because, it has been pointed out, its complete elimination would be administratively difficult, as it would mean all earnings (including, say, paper rounds at age 16) being immediately taxable.

Nevertheless, in spite of these more onerous feasibility criteria, Torry’s research claims to have found one scheme that meets them and one that comes very close, as well as a feasible Scottish pilot scheme.