Universal Basic Income Could Help Cushion UK Workers From AI Job Losses
As AI continues to take its vicious toll on jobs everywhere, there may be a soft solution in the UK.
The country could consider introducing a universal basic income (UBI) as a way to protect workers whose jobs are disrupted by AI, according to the investment minister Jason Stockwood, as concerns mount over the pace at which new technologies are reshaping the labour market.
UBI refers to a system in which individuals receive a regular, unconditional payment from the state, regardless of employment status. Proponents argue that it could provide a safety net in periods of economic disruption, while critics warn about high costs and the potential impact on incentives to work.
Speaking to the Financial Times, Stockwood said the transition driven by AI would be “bumpy” and could require government intervention to support people whose roles disappear suddenly. While a UBI is not currently part of official government policy, he suggested that the idea is increasingly being discussed behind the scenes.
The Labour peer told the FT: “Undoubtedly we’re going to have to think really carefully about how we soft-land those industries that go away, so some sort of [UBI], some sort of lifelong mechanism as well so people can retrain.”
Growing fears over jobs and automation
Stockwood’s comments come amid intensifying debate over the impact of AI on employment in the UK. Advances in automation, machine learning, and generative AI have raised concerns that large numbers of roles, particularly in administrative, customer service, and professional sectors, could be displaced faster than new jobs are created.
This week, research by the investment bank Morgan Stanley found that the UK was losing more jobs than it was creating because of AI, and that the country was being hit harder than other large economies. The findings have added urgency to calls for retraining programmes and new social protections for workers facing redundancy.
Political leaders have also issued warnings about the scale of the challenge. This month, the mayor of London, Sadiq Khan, said AI could destroy swathes of jobs in the capital and “usher in a new era of mass unemployment.” His remarks echoed similar concerns raised by economists who argue that the speed of AI adoption could outstrip the ability of education systems and labour markets to adapt.
International warnings and the risk of unrest
Concerns about AI-driven job losses are not limited to the UK. Last week, Jamie Dimon, the chief executive of the US bank JP Morgan, told the World Economic Forum in Davos that governments and businesses would need to step in to support workers displaced by technology or risk wider social consequences.
He warned that failing to manage the transition could lead to deep inequality and unrest, reinforcing arguments that some form of income support or reskilling framework may be necessary as automation accelerates across industries.
As debate over AI, employment and inequality continues to intensify, Stockwood’s remarks signal that ideas once considered politically marginal, such as UBI, may gain traction as policymakers grapple with the social consequences of rapid technological change.
Cisco’s chief executive warns that the current AI gold rush will eventually end in a reckoning.
The post Universal Basic Income Could Help Cushion UK Workers From AI Job Losses appeared first on eWEEK.