Question 3 Read the extract (Extract 1), which is about calls for trials for a universal basic income. Then answer the f

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Question 3
Read the extract (Extract 1), which is about calls for trials
for a universal basic income. Then answer the following three
questions.
3.1 The furlough scheme meant that
government provided employers with a grant that allowed employers
to pay up to 80% of each employee’s salary for hours not worked (up
to a maximum of £2,500 per month).
Outline what is meant by a universal basic income and explain
two ways that the furlough scheme differs from a universal basic
income. (5 marks)
3.2 Outline two advantages and one
disadvantage of a universal basic income over the furlough scheme
and over the benefit system for providing everyone with a minimum
income. (6 marks)
3.3 Outline the concept of opportunity
cost and use it to explain what is meant by the claim that a
universal basic income is too expensive, for example relative to an
expansion of public services. (4 marks)
Extract 1: Covid job losses lead MPs to call for
trials of universal basic income
A cross-party group of MPs has called on the government to allow
councils to run universal basic income (UBI) trials in response to
mass unemployment triggered by the Covid-19 pandemic.
A letter to the chancellor, Rishi Sunak, signed by more than 500
MPs, lords and local councillors says pilot schemes are urgently
needed as the pandemic unleashes widespread economic disruption and
drives up redundancies at the fastest rate on record this winter.
Launching a UBI would mean the state paying every adult a basic sum
regardless of their income.
The letter says issues with the benefit system and the end of
the furlough scheme mean Britain is ill-equipped to support people
through the financial insecurity of the Covid recession.
“We must trial innovative approaches which create an income
floor for everyone, allowing our families and communities to
thrive. The pandemic has shown that we urgently need to strengthen
our social security system. The creation of a UBI – a regular and
unconditional cash payment to every individual in the UK – could be
the solution,” the letter states.
One UBI option flagged by the group would be to launch an
initial £48 per week payment …
Critics argue that a UBI would be too expensive to operate and
would discourage people from looking for work. There are also calls
for alternative policies to meet the same goals as a UBI, such as
significantly raising funding for public services or expanding the
benefit system and targeting it to support the neediest in
society.
Source: Partington (2020)
(Total marks available for Question
3: 15 marks)