Financially speaking, it’s no great secret that things are tighter than ever right now. There is, however, a glimmer of hope on the horizon. As The Guardian reports, Autonomy, a thinktank plans to trial the first-ever universal basic income (UBI) programme in England. The trial will involve 30 people who will each be paid a monthly sum of £1,600 for two years. 

A system such as this one is, many would argue, long overdue. The past few years have seen an exponential rise in the cost of living, with inflation reaching a rate of over 11% in 2022. It’s the highest rate we’ve seen in four decades and has led to a sharp rise in the price of just about everything. Food, housing and bills are all costing more than before.

However, in spite of what is becoming a financial crisis for many, the vast majority of wages have remained relatively stagnant, growing by only 5.8% on average in 2023; adjusted for inflation, our wages are, effectively, decreasing. Simply put, many people are really struggling. UBI could help to give everyone a humane standard of living.

“Universal basic income usually covers people’s basic needs but we want to see what effect this unconditional lump sum has on people’s mental and physical health, whether they choose to work or not,” explained Will Stronge, Autonomy’s director of research. “Our society is going to require some form of basic income in the coming years, given the tumult of climate change, tech disruption and industrial transition that lies ahead.”

But while it has the potential to benefit everyone, a UBI scheme may have a unique impact on women.

When it comes to work and finance, women are still not on an equal playing field. In 2022, the government reported that, on average, women were paid only 90p for every £1 earned by their male counterparts – and Women’s Budget Group briefing indicates that this gap is increasing.

In addition to the gender pay gap, studies have shown that women in the UK are often responsible for a disproportionate share of unpaid domestic labour. A 2021 study, for instance, found that in heterosexual relationships, women tend to spend more time doing housework and taking care of children – and this only increased during the pandemic.

The cost of living crisis has hit everyone’s finances, but women are disproportionately affected. As the British Psychological Study noted, women are more likely to manage household costs and are also more likely to be in part-time or insecure employment.

Considering all of this, there is a chance that a UBI scheme could begin to help to level things out for women. If women were given a standardised base wage, this would offer the financial support they need to keep their heads above water. For women who may be overworking themselves in their careers and in their homes just to make ends meet, UBI might offer some respite and some much-needed time to breathe. However, it’s a far cry from a long-term solution.

“There is an argument that the universal basic income could level out the gender pay gap however it should not be used to mitigate the issue,” says Phoebe Ellis, head of operations at Thrive Money, which aims to help improve people’s financial education with a focus on women and younger people. “The gender pay gap is a separate problem in itself which needs dealing with and before we seek for options to solve it, we need to face it head-on.”

With a basic income guaranteed, women would also have the freedom to let go of the need to ‘hustle’ in their careers. Instead, they could pursue passions either as an extension of their careers or outside of work altogether. In other words, the scheme could open up space for a new generation of creatively fulfilled women.

The scheme might even begin to shift inequalities within creative industries. Traditionally, creative industries are financially risky and they are often disproportionately dominated by people who have the time and financial support to experiment. Typically, this means people from privileged backgrounds. As a 2020 report noted, women from minority ethnic groups and from working-class backgrounds are “significantly underrepresented” in these spaces.

With a UBI scheme in place, this may begin to change. “[UBI] can contribute to building a fairer society by providing a financial safety net and empowering women to pursue opportunities previously hindered by financial limitations,” explains Sarah Connelly, a finance expert at Cashfloat. “By receiving a guaranteed income, women would gain more financial freedom to make decisions that shape their lives.”

With UBI, women, who rarely have the time to explore things outside of their work, would be given the mental and physical space to explore their interests and pursue riskier career paths.

“It could allow women to have greater flexibility in choosing their employment options,” she goes on. “It may enable women to pursue more creative, risky ventures and explore entrepreneurial opportunities without the fear of financial instability. By providing a basic income, UBI can help women break free from the cycle of low-paying jobs and enable them to take calculated risks in their careers.”

As Ellis notes, this applies to men, too. “It could help with individuals who have to work to get an income – perhaps they could take on a ‘passion project’ or cope with other social pressures, such as caring for elderly, disabled relatives or children,” she says. “It’s not a gender issue, it is a poverty one.”

However, there are some potential pitfalls for women, too. UBI could become problematic if it only serves to increase the imbalance of domestic duties in heterosexual households. After all, if women receive a base wage, they may feel more pressure than ever to sacrifice career ambitions to take on domestic duties instead.

“UBI alone may not address the complex issues of gender inequality,” warns Connelly. “There is a risk that UBI could inadvertently reinforce traditional gender roles by placing additional responsibility on women for household and caregiving tasks.” Connelly suggests that UBI should only be implemented alongside strong supportive policies that include “affordable childcare, parental leave and initiatives promoting gender equality in the workplace”.

While the prospect of a universal basic income support scheme is certainly something to celebrate and champion, it’s important to remember that, for women, it would come with its own unique set of benefits and pitfalls. However, with the right support systems and policies in place, it might be just the thing we need to bring a little more gender equality into our financial lives.

Images: Getty