Investment minister Lord Stockwood has suggested that a universal basic income (UBI) could be introduced in the UK to cushion the impact of job losses caused by artificial intelligence. In an interview with the Financial Times, the Labour peer acknowledged that the technology would bring 'bumpy' changes to society, necessitating a 'concessionary arrangement' for displaced workers.
Lord Stockwood, who took up his ministerial post in September, stated that people in government are 'definitely talking about' UBI, though it is not yet official policy. He emphasised the need for a 'soft-landing' for affected industries and lifelong retraining mechanisms. His comments come amid growing concerns about AI's impact on Britain's job market.
Research by Morgan Stanley this week found that the UK is losing more jobs than it is creating due to AI, faring worse than other large economies. London mayor Sadiq Khan warned that AI could 'usher in a new era of mass unemployment', while JP Morgan CEO Jamie Dimon cautioned that failure to support displaced workers could lead to civil unrest.
Lord Stockwood, a former tech entrepreneur who oversaw the sale of Simply Business for $490m, has previously advocated for a wealth tax. However, he told the FT he has not repeated those calls, though he criticised wealthy individuals who seek to minimise their tax contributions, suggesting they are not committed to the country's long-term success.
