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Money for everyoneWhy we need a citizen's income$
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Malcolm Torry

Print publication date: 2013

Print ISBN-13: 9781447311249

Published to Policy Press Scholarship Online: January 2014

DOI: 10.1332/policypress/9781447311249.001.0001

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What Can a Citizen's Income Not Cope With?

What Can a Citizen's Income Not Cope With?

(p.265) Chapter 16 What Can a Citizen's Income Not Cope With?
Money for everyone

Malcolm Torry

Policy Press

Some aspects of household budgets cannot be dealt with by a combination of the labour market and a Citizen's Income. Disabilities can prevent people from earning a living, and they impose additional costs. An additional unconditional benefit might be appropriate, or alternatively means-tested benefits, which are less of a problem where they will not impose additional disincentives. Individualised care budgets will remain useful. Housing costs vary. In the absence of the substantial amounts of additional housing needed to reduce rent levels, either a means-tested housing benefit will still be needed, or a flat rate benefit adjusted for local housing costs. The latter would be simpler to administer, and it would not create the market distortions that accompany a means-tested benefit. Fuel costs pose similar problems, as households have little control over them. Here, as with housing costs, a Citizen's Income would provide additional opportunities to increase net income. Passported benefits, such as free school meals, are those currently conditional on being in receipt of means-tested benefits. With a Citizen's Income, fewer people will be on means-tested benefits. Some passported benefits might need to become universal, which would be no problem in the context of a progressive tax system.

Keywords:   Disabilities, Housing costs, Individualised care budgets, Local housing costs, Market distortions, Fuel costs, Passported benefits, Free school meals, Progressive tax system

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