No one left behind: Why universal basic income makes more sense than targeted grants

The fact sheet compares universal and targeted basic income systems, arguing that targeting often fails due to high exclusion errors and administrative complexity. It posits that a UBIG ensures no one is left behind, reduces state administrative burdens, and provides greater poverty impact through household income pooling, particularly in South Africa.

• Targeting systems for income support frequently fail to reach the intended beneficiaries due to flawed government data, burdensome bureaucratic processes, and the difficulty of accessing application systems like online forms. A study of 25 targeted initiatives found that 12 had exclusion errors exceeding 70%, 5 had errors above 90%, and none had exclusion errors below 40%, with Brazil's Bolsa Familia being the best performer at 44%.
• In South Africa, the Social Relief of Distress (SRD) grant demonstrated the failures of targeting when a low means-test threshold led to a plummet in applications and approvals. This process increased state costs, such as paying banks for income checks, and caused payment delays.
• A UBIG is argued to be superior to targeted grants because it eliminates the need for expensive and time-consuming eligibility assessments and prevents the exclusion of needy individuals. While universal, it can remain redistributive if paired with progressive taxation and clawbacks for high earners.
• Economic modelling suggests that a UBIG has a greater impact on poverty than a higher-value targeted grant because it allows multiple adults in low-income households to pool their resources. In South Africa, 88% of SRD grant recipients reported pooling their income.
• Targeted grants can create social division, attach stigma to recipients, and potentially discourage people from seeking employment if it results in losing the grant. Conversely, a UBIG is presented as a way to foster social solidarity and cohesion.

APA

Institute for Economic Justice (2022). No one left behind: Why universal basic income makes more sense than targeted grants. https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-2-fact-sheet-web.pdf

Chicago

Institute for Economic Justice. No one left behind: Why universal basic income makes more sense than targeted grants. 2022. https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-2-fact-sheet-web.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=No one left behind: Why universal basic income makes more sense than targeted grants |date=November 2022 |url=https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-2-fact-sheet-web.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2022one, author = {{Institute for Economic Justice}}, title = {{No one left behind: Why universal basic income makes more sense than targeted grants}}, institution = {Institute for Economic Justice}, year = {2022}, month = nov, url = {https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-2-fact-sheet-web.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }