Finland starts experiment on "universal basic income"

Source: Xinhua   2017-01-03 16:49:17

HELSINKI, Jan. 3 (Xinhua) -- A trial program has been launched Sunday in Finland to provide the unemployed or people who receive income subsidies with a basic monthly income.

The experiment is the result of a preliminary report conducted last year by the Finnish government, as one of a series of key projects formulated by the cabinet.

Under the program, randomly selected participants who are receiving unemployment benefits or income subsidies would receive an untaxed 560 euros (587 U.S. dollars) a month.

After the two-year trial, the Finnish government will decide whether to give all adults in the country the basic monthly income.

It is hoped that the universal basic income would simplify Finland's welfare system and encourage the unemployed to find jobs, as the welfare would be provided regardless of income, wealth or employment status.

Olli Kangas, research leader of the project, said last March when the preliminary report was released that multifarious procedures could be reduced as subsidies such as student allowance, unemployment benefits, sickness benefits and so on would be replaced by the universal basic income.

The first stage of the experiment involved 2,000 participants, as some experts suggested at least 10,000 people should be included.

The current Finnish welfare system provides unemployment benefits and additional living cost subsidies after verifying beneficiaries' labor force status and income level.

Finland's welfare system also includes heavily subsidized health care and free education, as well as a variety of social services funded by the government. All Finns are entitled to these benefits, regardless of their income and social status. The universal basic income program will probably not affect these benefits.

Editor: liuxin
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Finland starts experiment on "universal basic income"

Source: Xinhua 2017-01-03 16:49:17

HELSINKI, Jan. 3 (Xinhua) -- A trial program has been launched Sunday in Finland to provide the unemployed or people who receive income subsidies with a basic monthly income.

The experiment is the result of a preliminary report conducted last year by the Finnish government, as one of a series of key projects formulated by the cabinet.

Under the program, randomly selected participants who are receiving unemployment benefits or income subsidies would receive an untaxed 560 euros (587 U.S. dollars) a month.

After the two-year trial, the Finnish government will decide whether to give all adults in the country the basic monthly income.

It is hoped that the universal basic income would simplify Finland's welfare system and encourage the unemployed to find jobs, as the welfare would be provided regardless of income, wealth or employment status.

Olli Kangas, research leader of the project, said last March when the preliminary report was released that multifarious procedures could be reduced as subsidies such as student allowance, unemployment benefits, sickness benefits and so on would be replaced by the universal basic income.

The first stage of the experiment involved 2,000 participants, as some experts suggested at least 10,000 people should be included.

The current Finnish welfare system provides unemployment benefits and additional living cost subsidies after verifying beneficiaries' labor force status and income level.

Finland's welfare system also includes heavily subsidized health care and free education, as well as a variety of social services funded by the government. All Finns are entitled to these benefits, regardless of their income and social status. The universal basic income program will probably not affect these benefits.

[Editor: huaxia]
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