Bern is set to become the first city in Switzerland to conduct a large-scale trial of universal basic income or UBI, local lawmakers have confirmed. While the plans have been praised for exploring the concept in greater detail, some question whether the de facto capital can actually afford UBI.

300 Bern residents to be given a universal basic income

As part of the pilot project, 300 people in Bern will be given a universal basic income. While city officials said the size of the payments will be determined at a later date, fundamentally the trial means that no matter how much or little participants work, their salaries will be supplemented by a set payment every month.

Initially submitted two weeks ago, the city council has approved the funding needed to launch the UBI pilot. Estimates from the Berner Zeitung suggest that the UBI scheme will cost the city nine million francs in total.

Crucial to explore potential UBI in Switzerland, supporters argue

Speaking to 20 Minuten, Social Democratic National Councillor Ursula Zybach argued that "it is right and important to scientifically investigate the effects of a basic income." "The fact is that a social upheaval is underway - people no longer want to work until they drop, so we need to investigate alternative solutions."

Though it has its historical origins in left-leaning political movements in the UK and the US, the concept of UBI caught global attention as part of the failed 2020 US presidential campaign of entrepreneur Andrew Yang. He called for every American to be given 1.000 US dollars a month, which he argued would help residents "pay their bills, educate themselves, start businesses, be more creative, stay healthy, relocate for work, spend time with their children, take care of loved ones, and have a real stake in the future."

Supporters of UBI argue that the policy would help alleviate poverty in the community and improve income inequality. Others have noted that the policy could make social security more efficient by consolidating programmes into one set payment. UBI trials have been conducted in over 10 nations around the world, but the policy is yet to be adopted.

Can Bern afford to offer a universal basic income?

The concept of a universal basic income in Switzerland is not new. In 2016, 77 percent of voters rejected granting every adult a UBI of 2.500 francs a month, on the grounds that it would cost the country 200 billion francs a year - interestingly, 40 percent of Bernese voted in favour of the plan. In the last two years, UBI pilots have been rejected in Zurich and Lucerne, on the grounds that they are neither unaffordable nor sustainable.

Indeed, the question of cost also looms large over the UBI pilot in Bern. Opposition groups have argued that with the city expected to run deficits in 2025, 2026 and 2027, and with Bern’s debt set to rise to 1,7 billion francs in the next year, conducting a UBI trial was the last thing city financiers need. The local council confirmed that 40 percent of the pilot’s costs will be paid using existing funds, while the rest will be borrowed.

Opponents label Bernese UBI scheme as "utopian"

"The proposal is completely utopian and has already been rejected at the political level elsewhere," noted Centre Party National Councillor Reto Nause. He argued that rolling out a UBI in Bern would create a “pull effect on socially disadvantaged people" who would come to the city to seek the higher automatic payment. "The city simply cannot afford that," Nause concluded.

Swiss People’s Party councillor Thomas Aeschi agreed, labelling UBI as “helicopter payments”. "Of course, we need social insurance - but in principle, every citizen should be responsible for their own livelihood and their own pension," he argued.

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