In the UK, a UBI that replaces all other means-tested benefits would benefit the middle-class more than lower-income groups.

“As figure B1 shows, the overall impact of each of these schemes is progressive in that those in the bottom decile enjoy a substantial increase in average income while those in the top decile experience a fall in average income. On the other hand, under schemes 1 and 2 those in the middle deciles (4 to 8) do better than those in deciles 2 and 3. As a result, middle-income groups are significant gainers from such a scheme and do better than those in deciles 2 and 3. This is because any additional withdrawals in taxation from their income are likely to be lower than the loss of benefits in the present system. As a result, such a move would improve the incentive to work and possibly raise public support for such a scheme.”

econometric


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