"In response to rising levels of relative poverty and deepening income inequality, several think-tanks have proposed a fundamental overhaul of the social security system. Proposals include replacing the complex, conditional means-tested welfare state with an unconditional Universal Basic Income (UBI) funded by carbon taxes and progressive income tax reforms. Advocates argue this would provide a secure financial floor and eradicate the administrative hurdles of the poverty trap, whereas critics point to the massive fiscal cost and potential work disincentives."
Using the extracts and your knowledge of economics, assess the view that introducing a Universal Basic Income (UBI) is the most effective policy for reducing poverty and income inequality in the UK.
