Support for workers displaced by artificial intelligence is back on the policy agenda after a government minister confirmed that universal basic income has been discussed in relation to future job losses.
Concerns about automation and employment have grown as AI systems spread across sectors from professional services to customer support, prompting warnings that some roles may shrink or disappear. That has renewed debate about how the welfare system should respond if large numbers of workers need to retrain or move sectors.
The latest intervention came from Jason Stockwood, the UK’s investment minister, who said ministers were considering how to provide a “soft landing” for people in industries that may be heavily affected by AI.
Calls for a ‘soft landing’ for affected workers
Stockwood indicated that income support and retraining would both be part of any serious response to disruption. He said the government needed a plan for sectors that could decline as AI capabilities improve.
“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 life-long learning mechanism as well, so people can retrain,” he told the Financial Times. He added that people in government were talking about the idea.
Universal basic income (UBI) refers to a regular, unconditional cash payment to individuals regardless of employment status. Advocates argue it provides a financial floor and simplifies welfare. Critics question affordability and warn it could weaken incentives to work.
The comments are notable because the current government has previously played down the idea. Before entering office, Prime Minister Sir Keir Starmer said he was not drawn to UBI as a response to AI, arguing instead for retraining and reskilling so workers could move into new roles.
Warnings about disruption from AI
Debate around UBI has intensified as senior figures in technology and politics warn of labour market disruption. Dario Amodei, chief executive of AI company Anthropic, has cautioned that AI could cause “unusually painful” changes in jobs markets and described advanced systems as a broad substitute for human labour in some tasks.
He warned that lower-skilled workers could be pushed into insecure, low-paid work if transitions are not managed well. Such statements have added urgency to policy discussions about safety nets and reskilling.
In the UK, London Mayor Sadiq Khan recently said AI could usher in a period of significant job losses in parts of the capital, particularly in white-collar sectors. His comments reflected concern that professional roles once considered secure may also be exposed.
At the same time, ministers have tried to strike a balanced tone. Liz Kendall has acknowledged that some jobs will disappear because of AI but argued that new roles are also likely to emerge. She said the government would support people to adapt and would not leave communities to cope alone.
UBI in the UK context
Universal basic income has been debated in the UK for years but has never been rolled out nationally. The most prominent recent pilot was in Wales, where a scheme launched in 2022 provided regular payments to young people leaving care to test the impact on stability, wellbeing and life chances.
That pilot was limited in scale and targeted at a specific group rather than the whole population. Evaluations have focused on whether guaranteed income improves housing security, education participation and mental health.
Supporters of wider UBI argue that AI could accelerate the need for such models if employment becomes more volatile. They say a guaranteed income could give people breathing space to retrain, start businesses or take on caring responsibilities.
Opponents point to the fiscal cost. A nationwide UBI at a meaningful level would require tens of billions of pounds annually, depending on design. There are also debates about whether targeted support and active labour market policies deliver better value.
Funding and fairness debates
Stockwood has previously floated the idea that technology firms benefiting from AI-driven productivity could contribute more through taxation. He has also spoken in the past about inequality risks if the gains from AI are concentrated among a small group of owners and investors.
His background outside politics has shaped some of those views. Before entering government he worked in the technology and travel sectors and has spoken about social mobility and regional inequality, drawing on his upbringing in Grimsby.
While he has stepped back from earlier calls for wealth taxes since joining government, his comments signal ongoing concern about how the benefits of AI are distributed.
Focus on retraining likely to continue
Even among those open to UBI, retraining remains central to policy thinking. Lifelong learning, adult skills programmes and closer links between employers and training providers are frequently cited as more politically and fiscally realistic than unconditional income for all.
The debate matters for employers and workforce planners because it shapes how transitions are supported. If workers feel they have some security during change, they may be more willing to retrain or move sectors.
For now, universal basic income remains a topic of discussion rather than firm policy. But as AI adoption grows and evidence on job impact accumulates, experts say pressure is likely to build for clearer plans on how to protect livelihoods as well as promote innovation.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
