Seattle gave low-income residents $500 monthly payments with no strings attached. Some got new housing and employment rates almost doubled.
A basic income pilot in Seattle gave $500 a month to low-income residents, nearly doubling employment rates.
Some participants reported obtaining new housing, while others saw an increase in their employment income.
National basic income pilots have been remarkably successful, despite opposition from conservatives.
A guaranteed basic income pilot in the Seattle area gave $500 a month to low-income residents to help alleviate poverty. Employment in the group nearly doubled and many unhoused residents gained housing.
The Workforce Development Council of Seattle-King County launched a 10-month guaranteed basic income pilot program with 102 participants in fall 2022. New findings from research firm Applied Inference reveal that total payments of 5,000 $ improved the quality of life, housing and employment of participants. results.
“These results demonstrate the power of community investment and the need for equitable solutions to overcome persistent barriers,” Marie Kurose, CEO of the WDC, said in a statement. “The WDC will continue to use this knowledge to amplify our impact and drive transformative change in our region.”
Although they vary in characteristics and qualifications, guaranteed basic income programs provide direct cash payments to selected participants for a specified period of time. Some programs require participants to declare what they are using the monthly money on, while others offer funds with no strings attached.
Under the Seattle area pilot program, public and private partners — such as King County, the Department of Employment Security and Chase Bank — funded participants, about 88 percent of whom were people of color. King County is a wealthy and majority white county, according to census data.
Employment among participants nearly doubled, from 37% before the program to 66% after the pilot. Participants also reported getting better-paying jobs with added benefits. The average income of participants increased from $2,995 per month to $3,405.
The percentage of participants whose job offered a retirement plan nearly tripled, while life insurance doubled. More than a quarter of participants reported having disability insurance in their new job, something none of them had in their previous job.
Participants also reported being more financially stable, meaning they could pay their bills and debt while accumulating more savings for the future. For example, the percentage of participants with savings increased from 24% to 35% — for families with children, this figure increased from 0% to 42%. The percentage of those able to pay their bills regularly doubled from 19% to 38%. The percentage of those who are behind on all debts has remained stagnant.
The payments have contributed to less anxiety and fatigue and more freedom to travel and spend on non-essential things. Likely due to an increased ability to seek treatment, some also reported a reduction in physical pain, allowing them to more easily go about their lives and achieve their educational or career goals.
Parents reported using the payments primarily to meet their children’s needs, although many said they could not significantly improve their own financial situation. Parents were less likely than non-parents to have started short-term vocational training.
Many participants said they wanted the program to continue for a full year rather than 10 months, while others suggested higher monthly payments of up to $1,000.
The results are in line with similar pilot programs nationwide, which have seen enormous success. Participants in universal and guaranteed basic income programs largely reported that the funds helped them pay off debt, as well as pay for groceries, child care and housing.
Even so, the country’s conservative lawmakers have strongly opposed the programs, saying they discourage work and cost taxpayers. However, many pilot programs are privately funded by philanthropies or federal relief funds. Republicans in several state legislatures have pushed efforts to ban basic income programs in their states.
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