What Is Universal Basic Income?

UBI is a form of social security in which every individual receives a fixed amount of money, regularly and unconditionally, regardless of employment status or income. The goal is to guarantee a minimum level of financial security, reduce poverty, and empower people to make life choices without the constant pressure of survival economics.

This is different from traditional welfare, which is usually means-tested and tied to specific conditions like unemployment or disability. UBI, by contrast, is universal—everyone gets it, no strings attached.

Why the Idea Is Gaining Momentum

The appeal of UBI has grown in recent years for several reasons:

1. Automation and the future of work: As artificial intelligence and robotics replace jobs in sectors like retail, manufacturing, and even customer service, concerns are growing about long-term employment stability. UBI is seen by some as a potential solution to the displacement caused by automation.

2. Precarious employment: Young adults increasingly find themselves in casual, gig, or short-term contract work without the benefits or protections of traditional employment. A basic income could provide a safety net for these workers while allowing them to pursue training, education, or entrepreneurship.

3. Rising inequality: The gap between the wealthiest and the rest has widened dramatically. UBI is seen as a redistributive tool that could help level the playing field and reduce reliance on complex welfare systems that often exclude or stigmatise recipients.

4. Mental health and freedom: Proponents argue that by reducing financial stress, UBI could improve mental health, boost productivity, and give people the freedom to care for children, start businesses, or pursue creative projects without the constant fear of going broke.

What Does the Evidence Say?

UBI has moved beyond theory in recent years, with pilot programs launched in Finland, Canada, the United States, Kenya, and even small trials in Australia. These trials have found some promising results:

• In Finland, a two-year trial showed recipients had improved mental well-being, higher reported happiness, and similar employment rates compared to non-recipients—suggesting that UBI doesn’t discourage work.

• In Kenya, long-term UBI recipients reported better nutrition, health outcomes, and economic stability.

• In the U.S., programs like the Stockton Economic Empowerment Demonstration (SEED) found that basic income helped recipients find full-time work and reduce debt.

Critics, however, point out that small-scale pilots don’t fully capture the complexity of rolling out a nationwide UBI. Some argue it would be too expensive, could reduce work incentives, or divert funds from more targeted welfare programs that address specific needs like housing or disability.

How Would It Be Funded?

The biggest question surrounding UBI is cost. Universal payments to every adult would require significant public expenditure. Proposals to fund UBI include:

• Taxing wealth or high incomes

• Introducing or increasing carbon taxes

• Redirecting funds from existing welfare programs

• Implementing financial transaction taxes or automating taxation from digital businesses

Economists are divided. Some argue that a modest UBI could be funded by cutting bureaucracy and simplifying existing welfare systems. Others believe a partial basic income—smaller, needs-based payments—is more feasible in the short term.

What It Means for Young People

For young adults, UBI represents more than just free money. It’s a signal of trust from society—a belief that everyone deserves a baseline level of dignity, regardless of economic status. In an age of side hustles, job hopping, and unaffordable housing, UBI could offer breathing room and help shift focus from survival to growth.

At the same time, it invites deeper questions: Should the state pay people to exist? How do we define “contribution” in an economy where unpaid work (like caregiving or volunteering) is often overlooked? And how do we build a system that empowers people without weakening the social fabric?

A Debate Worth Having

UBI is not a silver bullet, but it has sparked an important global conversation about how we support people in a changing world. Whether or not full-scale UBI becomes a reality, its rise reflects a broader desire to reimagine how we define work, value people, and ensure no one is left behind.

As the next generation of workers, voters, and entrepreneurs, young adults have a key role to play in shaping that future.