Trondheim is set to implement a basic income project for the first time in Norway.
This initiative will target young adults under 30 who are neither employed nor pursuing higher education. Each eligible individual will receive around 22,400 USD annually.
Participants won’t need to prove anything except their employment or education status.
They will still have access to support from the Norwegian Labour and Welfare Administration and other aid agencies. The program will also involve planning and goal-setting to support recipients.
Linked to Research
NAV Falkenborg is actively working with the Ministry of Labour and Social Inclusion, as well as the Directorate of Labour and Welfare, on a new project. Unni Valla Skevik, the director, has confirmed that the project will integrate research. Details on the project’s design are still being determined.
Timely Project
Widely Seen
Recently released figures show the number of young people receiving disability benefits has doubled since the start of the last decade.
The increase in disability benefits among young people highlights the need to address youth isolation. Ann-Helén Bay, a professor at OsloMet, emphasizes the significance of this issue.
If NAV in Trondheim approves the project, Bay stresses the importance of integrating research in both the design and execution phases.
Connecting the project to research will support the development of robust knowledge for future policy creation, according to Bay.
A patchwork quilt
NAV advisor Øyvind Spjøtvold from Trondheim highlights the challenges faced by youth dealing with social rejection. He notes that the current system resembles a patchwork quilt, with various benefit schemes stitched together.
Many young people struggle to fit into these different schemes, finding the situation confusing and difficult to navigate. Simplifying the benefits system could make things easier for them.
Often Ends in Disability Benefits
Young people often face challenges moving forward in life, partly due to the close connection between their rights and the healthcare system. This link can lead them into long-term processes to secure diagnoses that qualify them for financial support.
This path can worsen their problems, increasing the likelihood of ending up on disability benefits early in life.
Studies indicate that this strong tie between diagnosis and social security rights might not be beneficial. Many individuals become entangled in a lengthy journey for a diagnosis, potentially making their conditions worse. As a result, too many people are pushed towards disability pensions prematurely.
Not just smoking weed
Paying people a set amount each month without conditions doesn’t mean they will slack off. Simon Birnbaum, from the Institute for Futures Studies, has found results showing the opposite.
Speaking in Oslo, he explained that such projects around the world demonstrate that people do more than just relax and use substances. Instead, many young individuals enter the workforce or focus on personal improvement.
Providing a fixed income can drive engagement in productive activities rather than leading to inactivity or indulgence.
Many Attempts Around the World
A guaranteed minimum income, also called universal basic income (UBI), means giving people money without requiring them to do anything in return. The concept has not been a major focus in Norwegian politics. Yet, there is significant global interest in these ideas.
Various trials are currently testing different models of UBI in places like Kenya, India, Brazil, and the USA.
Some of the most extensive trials in welfare states took place in Finland and the Netherlands. Although these experiments have concluded, there are several ongoing smaller projects in Ireland and Wales, according to Birnbaum.
It is important to note that none of these trials involve all citizens, which contradicts the core idea of universal basic income. Instead, these projects target specific groups already receiving some form of state social security.
The goal of these trials is to encourage more people to enter paid employment. Participants are allowed to keep their financial support even if they start earning more money. This means that UBI is provided on top of any other income.
Birnbaum highlights that the projects in the Netherlands and Finland have unique features and limitations, but they both focus on low-income groups.
People Do Not Work Less
In both Finland and the Netherlands, no significant changes in employment were observed during the trial periods.
Recipients of a guaranteed minimum income did not reduce their work hours compared to those in the control group. In some cases, these individuals even increased their work activity.
This aligns with findings from a similar trial in Trondheim. The goal in these countries was to explore ways to make their social security systems more efficient and effective.
Better Health and Well-Being
Receiving a basic income led to better health among participants. They experienced fewer health issues and showed higher levels of trust in the future. They also believed more in their ability to make a difference in society.
Participants were more content with their lives. A noticeable reduction in anxiety and depression was also observed. The findings also align with initial data from a similar project in Ireland.
Key Outcomes:
- Fewer health issues
- Increased trust in the future
- Greater belief in societal impact
- Higher life satisfaction
- Reduced anxiety and depression
