Dutch City Utrecht to Provide Basic Income to Selected Welfare Recipients

In a city of 330,000 residents, a program is under analysis to determine if it will spread. Utrecht is the fourth largest city in the Netherlands, and officials for the city are reviewing a basic income program, specifically for welfare recipients. Officials want to build the program on trust, and started building the process of the experiment this past summer. The basic income will be a monetary amount provided to selected citizens to cover living costs without an obligation to find work.

This would permit participants to volunteer their time to social organizations, attend school, or find a flexible job to supplement their income. Officials say the experiment will consist of three groups:

  1. One group will remain under the present welfare system, and receive additional funds for housing and health insurance.
  2. The second group will receive money based on a system of incentives and possible rewards.
  3. The final group will receive the basic income with no extra monies or benefits.

The experiment will begin in the new year. Currently, it is estimated the selected basic income recipients will receive 900 Euro for an individual ($1,012 U.S. dollars) or 1300 Euro for a couple/family($1,463.05 U.S. dollars) monthly. Unlike the current welfare model in place, the recipients can choose to spend the money as they wish.

Officials shared the University of Utrecht and the city’s council will measure the study to determine if the basic income program is a success.

Of course with the pending roll-out of the program, many citizens in the country and beyond its borders worry about abuse. If people are receiving a guaranteed income monthly, with no restrictions, would that demotivate them to pursue career successes? Officials say the study is intended to measure the levels of motivation.

An official spoke to Quartz earlier this year describing the program. She believes people will strive to educate themselves, raise their young families, and pursue careers with the guaranteed assistance.

The experiment will begin with just 300 people, and only 50 will be selected to use the basic income program. If it is a success, the program will be specifically for only those on the welfare system. The basic income ideal is not a new one, and has been tried previously. Some countries have talked of its success on a national scale while others found drawbacks.

Utrecht will be monitored not only by those handling the experiment, but by fellow countries who are on the fence of implementing a guaranteed income program.