The workfree pilot project launched in Telangana in 2022 highlights the positive outcomes of Universal Basic Income (UBI) on individuals and families.
Workfree Pilot Project
- The project is a collaborative effort between the University of Bath, Montfort Social Institute, Hyderabad and India Network for Basic Income, with funding by the European Research Council.
- Under the pilot project, Rs 1,000 is paid to an adult and Rs 500 per month to a child for 18 months.
- The project provides assistance to 1,250 residents in five slums in Hyderabad.
- The WorkFree Pilot Project has been presented as a transformative initiative, highlighting its positive outcomes on individuals and families.
- Some residents of Telangana who were adversely affected by the transfer have received financial stability through UBI support. She used the cash assistance to start a bangle business which significantly improved her income.
- Residents also used the cash assistance to buy food, fuel, clothing and pay utility bills, which typically constitute the bulk of monthly expenses.
Other similar pilot projects
- Self Employed Women’s Association (SEWA) pilot project was conducted in Delhi and Madhya Pradesh in the year 2011. Under this project, about 100 families living below the poverty line in Delhi received Rs 1,000 per month.
Universal basic income
- Universal basic income is a social welfare proposal in which all beneficiaries receive a guaranteed income on a regular basis in the form of unconditional transfer payments.
- The goals of a basic income system include reducing poverty and replacing other need-based social programs that potentially require more bureaucratic involvement.
- UBI usually aims to be accessible to all (or a very large portion of the population) with or without strings attached.
Property
- Poverty alleviation: It reduces poverty and income inequality by providing a minimum income threshold for all, especially the most vulnerable and marginalized groups. It can also help people afford basic needs like food, health, education and housing.
- A health promoter: Improves physical and mental health by reducing stress, anxiety and depression associated with poverty and financial insecurity. It can also enable people to access better health care, sanitation and nutrition.
- Simplified welfare system: It can streamline the existing welfare system by replacing various targeted social assistance programs. It reduces administrative costs and eliminates the complexities associated with means-testing, eligibility requirements and benefit cliffs.
- Increased personal freedom: UBI provides people with financial security and greater freedom of choice regarding their work, education and personal life.
- Economic stimulus: It puts money directly into the hands of individuals, which stimulates consumer spending and accelerates economic growth. It can promote local businesses, generate demand for goods and services and create employment opportunities.
- It can empower people to pursue entrepreneurship, take risks, and engage in creative or socially beneficial activities that may not otherwise be economically viable.