Investment minister Lord Stockwood has indicated that 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 said the government is 'definitely' discussing the idea as AI disrupts industries.
Lord Stockwood acknowledged that the transition would be 'bumpy' and require 'some sort of concessionary arrangement with jobs that go immediately'. He emphasised the need to 'soft-land those industries that go away' through measures like UBI and lifelong retraining mechanisms.
While UBI is not official government policy, Stockwood confirmed that people in government are talking about it. The technology entrepreneur, who took up his ministerial post in September, said part of his motivation was to ensure the workforce is prepared for rapid technological change.
Fears over AI's impact on UK jobs are mounting. Research by Morgan Stanley found the UK is losing more jobs than it creates due to AI, hitting harder than other large economies. London mayor Sadiq Khan warned AI could 'destroy swathes of jobs' and trigger mass unemployment. JP Morgan CEO Jamie Dimon recently cautioned that governments must help displaced workers to avoid civil unrest.
Lord Stockwood, a former executive at Lastminute.com and Match.com, previously advocated for a wealth tax but said he has not repeated those calls. He argued that wealthy individuals who seek to minimise tax are not committed to their communities or the country's long-term success.
