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Catalonia’s UBI Program: A Bold Strategy for Poverty Reduction

Catalonia’s UBI ProgramIn 2024, Catalonia launched one of Europe’s most ambitious Universal Basic Income (UBI) initiatives. The year 2025 marks the first full year of its UBI pilot program, with 5,000 residents receiving unconditional monthly payments of $906 for adults and $400 for children. Catalonia’s UBI program reflects a growing interest in new economic security solutions across Europe. It aims to reduce poverty while improving mental health and employment flexibility.

The Government of Catalonia tasked the Office of the Pilot Plan for UBI with managing the two-year experiment. The team selected the 5,000 participants from two groups: 2,500 randomly chosen across Catalonia and 2,500 residents of two lower-income villages. The pilot aims to assess the effects of unconditional cash distributions on various social and economic outcomes, which do not replace any existing benefits. This approach allows for a comparative analysis to determine the true efficacy of unconditional income in improving social and economic conditions.

Results Are Yet To Be Seen

The Catalan government has not released any official outcome data. A comprehensive evaluation of Catalonia’s UBI program will occur in 2026 when researchers assess income changes, employment, health and well-being across recipients and a designated control group. Sociologist Sergi Raventós, who initially implemented the program, emphasized, “This is the first time something like this has been done anywhere in the world.”

In an interview with InfoLibre, Raventós spoke about his belief that UBI should serve as a central redistributive tool for the 21st-century welfare state. He has also previously stated that recipients of UBI often report lower stress and greater freedom to make meaningful life decisions. Results from other UBI programs back up this assertion. However, given the novelty of Catalonia’s pilot program, such results remain impossible to predict before the release of official data.

Learning From Global Examples

Catalonia’s UBI program builds on lessons from earlier UBI trials around the world. From 2017 to 2018, Finland tested a UBI pilot that gave 2,000 unemployed people $635 monthly. Although the funds didn’t significantly impact employment rates, participants experienced reduced anxiety, higher life satisfaction and increased confidence. Many used the income to invest in personal projects, such as starting businesses, volunteering or focusing on education.

Similarly, in the United States, the SEED program in Stockton, California, gave 125 people $500 per month for two years. Recipients found full-time jobs at double the rate of non-recipients and reported improved emotional health. These findings suggest that UBI can enhance well-being, even without major effects on employment outcomes.

However, Catalonia’s pilot program is unique in its effort’s scale and duration. The program includes a larger sample size, higher monthly payments and a design that reaches urban and rural communities. The Catalan team is also collaborating with academics to ensure rigorous evaluation to help determine whether UBI improves recipients’ quality of life across various metrics.

Implications for Global Poverty Strategy

The results of Catalonia’s UBI program may likely influence poverty policy across the globe. Governments in South Korea, Kenya and Brazil have also explored unconditional payments, though few programs match Catalonia’s scope.

The Catalan program’s results will provide more substantive data on whether direct cash support helps people escape cycles of low-income instability. As cost-of-living crises grow worldwide, Catalonia’s experiment could change how countries think about poverty, security and the role of government in economic planning and dignity.

– Kelsey Eisen

Kelsey is based in San Francisco, CA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr