Politicians urged to introduce £100 tax free every week - but only in some communities

A system where people should receive £100 a week tax free instead of traditional benefits should be tested in the UK, a new report has recommended.

The report, backed by the Labour Party, was written by Guy Standing of the Progressive Economy Forum.

It states that a version of universal basic income should be piloted in the UK as a way of tackling poverty.

What is universal basic income?

Universal basic income is the concept of providing everyone in a community an unconditional, non-means tested, government funded cash sum every week.

This could be as much as £100 a week, with supporters of the schemes saying it would help reduce poverty, stress levels and debt.

In the report Mr Standing writes, “We are living in an age of economic uncertainty, for which contributory insurance schemes are inappropriate or insufficient.

“Today a growing proportion of people are in the precariat, living bits-and-pieces lives, relying on low wages and incomes that are increasingly volatile and unpredictable and on inadequate and uncertain benefits in times of loss of earnings power.”

He claims a universal basic income scheme would help eliminate inequality, income insecurity and debt.

However, opponents have said introducing a basic income would be unaffordable for the UK and would lead to tax rises.