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Annie Miller - A Basic Income Handbook

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Annie Miller A Basic Income Handbook
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The current social security system is unwieldy, complex, unjust and unfit for purpose. If we were designing a system now from scratch for the 21st century, we would not end up with our present system. It is a Gordian Knot that cannot be unravelled or reformed. It must be cut through and replaced by a system fit for the 21st century. Basic Income is just such a system. It redefines the relationship between the state, society and the individual. This innovative book provides a new perspective on Basic Income a regular, unconditional payment to every citizen resident in the country. This comprehensive book has been rigorously researched and thus will appeal to academics and policy-makers, as well as to the general reader who is concerned about the current state of social security in the UK. Find out how Basic Income can make a difference to your life.

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ANNIE MILLER spent the major part of her working life in the Department of - photo 1

ANNIE MILLER spent the major part of her working life in the Department of Economics at Heriot-Watt University in Edinburgh teaching mainly business economics, econometrics, mathematics and statistics for economists. In 1991, with her colleague Douglas Mair, she co-edited a book comparing different schools of economic thought in the late 20th century (Mair et al, 1991).

In 1984, Annie was a co-founder of the Basic Income Research Group (BIRG), which changed its name in 1993 to the Citizens Income Trust (CIT). She has been a trustee since 1989 and is currently its Chair. She contributes regularly to its Citizens Income Newsletter. She gives talks to groups around the UK, and has presented papers on BI at conferences here in the UK, on the continent and in North America.

In January 2014, her local MSP, Jim Eadie, hosted a seminar and round-table discussion on Beyond Welfare Reform to a Citizens Income at the Scottish Parliament, at which Annie and the late Professor Ailsa McKay were keynote speakers. In her personal capacity, she presented written evidence to the Scottish Parliaments Expert Working Group on Welfare (2013) and to the Smith Commission (2014). Since politics in Scotland is now different from elsewhere in the UK, her fellow trustees at CIT encouraged her to set up a sister organisation in Scotland, the Citizens Basic Income Network Scotland.

Annie became a member of the Religious Society of Friends (Quakers) in 1978. Her faith, her belief in that of God in everyone, and her commitment to the Quaker testimonies (values) of peace, equality, integrity and simplicity inspire all her work.

In this vital contribution to the debate about how we ground our welfare system more squarely on social justice, Annie Miller has done Scotland and the UK a service. It combines personal reflections with passion and technical adeptness, making the case for a Universal Basic Income powerfully in the process. Amongst many other achievements, this work presents the under-articulated feminist case for change a vital component of the debate that should be more central. To be highly recommended.

ANTHONY PAINTER, Director of the Action and Research Centre, Royal Society for the Encouragement of Arts, Manufactures and Commerce

Annies book comes at the ideal moment in the Basic Income debate. With interest growing around the world, and progress taking place here in Scotland, the depth of economic knowledge that she brings to the debate will be invaluable in taking the idea forward.

JAMIE COOKE, Head of RSA Scotland

Annie has written not just a great introduction to the theory and background of Universal Basic Income, but a manual on the issues and opportunities for taking forward the practical implementation of basic income.

PAUL VAUGHAN, Head of Community and Corporate Development, Fife Council

At last! A book that helps us through the tangled dross to the pure gold of a Universal Basic Income.

JIM PYM, author of The Pure Principle

First published 2017 All royalties to be shared between Citizens Basic Income - photo 2

First published 2017

All royalties to be shared between

Citizens Basic Income Network Scotland, scio no. sc046356, www.cbin.scot and

Citizens Basic Income Trust, charity no 1171533, www.citizensincome.org

ISBN : 978-1-910745-78-6

The paper used in this book is recyclable. It is made from low chlorine pulps produced in a low energy, low emissions manner from renewable forests.

Printed and bound by

Bell & Bain Ltd., Glasgow

Typeset in 11 point Sabon by

3btype.com

The authors right to be identified as author of this work under the Copyright,

Designs and Patents Acts 1988 has been asserted.

Annie Miller 2017

This book is dedicated to the memory of the late

Professor Ailsa McKay

19632014

Contents
List of Figures
List of Tables
List of Abbreviations

AIDS Acquired immune deficiency syndrome

AHC After Housing Costs have been deducted

BHC Before Housing Costs have been deducted

BI Basic Income

BIEN Basic Income European/Earth Network

BIRG Basic Income Research Group

Blue Book UK National Accounts, the Blue Book, published each year.

CB Child Benefit

CBI Citizens Basic Income/Child Basic Income

CBINS Citizens Basic Income Network Scotland

CI Citizens Income

CIA Central Intelligence Agency (USA)

CIT Citizens Income Trust/Citizens Basic Income Trust

CTB/CTR Council Tax Benefit/Reduction

CTC Child Tax Credit

DWP Department of Work and Pensions

EDR Earnings Disregard

ESA Employment and Support Allowance

EU European Union

FBI Full Basic Income

FES Family economies of scale

GDP Gross Domestic Product

HB Housing Benefit

HBAI Households Below Average Income

HES Household economies of scale

HH Household

HIV Human immunodeficiency virus (infection)

HMRC Her Majestys Revenue and Customs

HMSO Her Majestys Stationary Office

HSHLD Household

IS Income Support

JSA Jobseekers Allowance

KELA Social Insurance Institution of Finland

LA Local Authority

LEL Lower Earnings Level (NI system)

MDR Marginal Deduction Rate

MIS Minimum Income Standards

MISUR Maternity, Invalidity, Sickness, Unemployment, Retirement (NI)

MP Member of Parliament (Westminster)

MSP Member of the Scottish Parliament.

MTB Means-tested benefit

NGO Non-Governmental Organisation

NHS National Health Service

NI/NIC National Insurance/National Insurance Contribution

NIT Negative Income Tax

NMW/NLW National Minimum Wage/National Living Wage

NPISH Non-Profit Institutions Serving Households

OECD The Organisation for Economic Co-operation and Development

ONS Office of National Statistics

PAYE Pay As You Earn

PBI Partial Basic Income

PI Participation Income

PT Primary Threshold, (NI system)

PWC Parent with care (primary care-giving parent)

S2P State Second Pension

SCIO Scottish Charitable Incorporated Organisation

SERPS State Earnings-Related Pension Scheme

SNAP Scottish National Accounts Project

STP Single Tier Pension

TC Tax Credit

UBI Universal or Unconditional Basic Income

UC Universal Credit

UEL Upper Earnings Level (NI system)

WTC Working Tax Credit

WWII World War Two

Y-BAR Mean gross income per head of man, woman and child

A note about terminology

A BASIC INCOME (BI) is a cash payment where assessment and delivery is based on the individual. It is universal for a defined population, is not means-tested, not selective except by age, and it is unconditional.

The concept has a fairly long history (see the Chronology in .

Another Nobel Prize-winning economist, James Meade, used the term Social Dividend from 1935, but implied different things at different times sometimes as a needs-based system and sometimes as a payment to everyone with no differentiation. Social Dividend was the term commonly used until the early 1980s. Since the 1980s, the term used in the English-speaking world has been Basic Income, although in the USA it is often referred to as a Basic Income Guarantee (BIG). Some people dislike the term Basic Income, because it sounds too basic, and yet that is really what it is about. The Basic Income Research Group agreed to change its name to the Citizens Income Trust (CIT) in 1993. It is the only organisation that has consistently used the term Citizens Income (CI), and this is recognised in the UK. Professor Ailsa McKay always referred to a Citizens Basic Income (CBI), and the founding group of the new Scottish charity chose to use this term too, with its emphasis on citizenship. The terms CI, CBI and BI can be used interchangeably.

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