The Basic Income Peterborough Network (BIPN) imagines a future where everyone can meet their basic needs, participate in society, and live with dignity, regardless of work status.
In a country where over 60% of households living with food insecurity are supported by wages, salaries, or self-employment, it’s clear that a job is no longer enough to make ends meet. We need an income floor that provides a sufficient income, so that no one struggles to eat or keep a roof over their head.
BIPN believes that a basic income guarantee is the best way to place an income floor firmly beneath the feet of Canadians.
The basic income guarantee we envision would operate as a negative income tax, which is a system that reverses the direction in which tax is paid for incomes below a certain level. That means it would be income-tested and would be distributed only to those who need it. Benefits would be gradually reduced as other income increases.
A basic income guarantee is often confused with a universal basic income (UBI) but differs significantly. The UBI model, also known as a demogrant, would offer the exact same benefit amount to every individual regardless of their other income, and it would then be taxed back from those who don’t need it. The disadvantage is that it would likely be offered in an amount that is insufficient to those who need it most. If it were offered in an amount that it could meet basic needs, the upfront costs would be much more expensive, and therefore less politically viable. Most Canadian basic income advocates prefer the guarantee model, sometimes referred to as a guaranteed liveable income.
This preference is also informed by the fact that in Canada, we have an abundance of evidence that supports the effectiveness of the guarantee model. The Canada Child Benefit and Guaranteed Income Supplement work in a very similar way but are targeted to specific groups (families with children and seniors) and leave out single working-age adults with no dependents.
We’ve also had two pilot programs that provided additional evidence for a basic income guarantee: Mincome in the 1970s, and the Ontario Basic Income Pilot more recently. Countless other experiments have happened internationally using many different models, and at different scales, but we believe that the best made-in-Canada solution to preventing poverty is a basic income guarantee!
Should provide enough money to cover basic needs and should be indexed to inflation so it continues to meet basic needs over time as the cost-of-living changes.
Should be available to all Canadians, permanent residents, and protected persons when needed.
Should only be subject to residency and income, regardless of work or relationship status.
Should be payable to individuals to be used at their sole discretion, free of stigma and oversight.
Should not be reduced dollar-for-dollar as other income increases. This rate of reduction would result in a disincentive to work. The Ontario Basic Income Pilot used a 50% rate, and some advocates have suggested even lower rates of reduction.
Should be provided quickly, and adjusted quickly when income from other sources rises or falls.
Should work in tandem with other social services and should not leave anyone worse off. While some social assistance programs could be replaced by a basic income guarantee, others should be maintained including those supporting children and seniors, as well as programs like Employment Insurance that are designed for other purposes.
Since 2015, Basic Income Peterborough Network has brought community members together to advocate for a basic income guarantee. Through local public education, and advocacy efforts at the municipal, provincial, and federal levels, BIPN generates interest in and understanding of this transformative policy solution.
