Reforming Welfare: A Universal Basic Income for Long-Term Residents - The Case of Italy -

In an era of economic uncertainty and complex welfare systems, Italy has an opportunity to simplify and strengthen its social security network. A Universal Basic Income (UBI) tailored exclusively for long-term residents and their families could replace the current patchwork of pensions, unemployment benefits, and bureaucratic inefficiencies. This approach would ensure a stable financial foundation for those who have built their lives in Italy while maintaining fiscal responsibility and social cohesion.

A Fairer and More Efficient System

Italy currently spends approximately €555 billion per year on social security programs, including pensions, unemployment benefits, and other welfare payments administered through institutions like INPS €524 billion per year (source: INPS Annual Financial Report 2023 - link) and INAIL €31 billion per year (https://www.inail.it/portale/it/inail-comunica/news/notizia.2024.10.news-presentazione-relazione-annuale-inail-2023.html)

These systems, while necessary, are costly to manage and create inefficiencies, redundancies, and disparities in how benefits are distributed. The operating expenses of INPS alone amount to €2.58 billion annually, in addition to other administrative costs (source: INPS 2023 Financial Report - link).

By reallocating these expenditures into a Universal Basic Income for adults who have resided in Italy for at least five years, we can create a more transparent and accessible welfare model. Under this system, every qualifying adult would receive approximately €1,027 per month, eliminating the need for complex eligibility criteria and bureaucratic hurdles.

Financing the Universal Basic Income

The estimated total cost of Italy’s current welfare system, including INPS and INAIL, is approximately €555 billion per year (source: INPS 2023 Financial Report - link). Instead of maintaining this costly and fragmented structure, the funds can be directly allocated to eligible long-term residents in the form of a UBI.

• Total available budget: €555 billion
• Number of eligible recipients (adults residing in Italy for at least five years): Approximately 42.5 million
• Annual UBI per person: €12,333
• Monthly UBI per person: €1,028

This method ensures that all long-term residents receive a fair and predictable income while drastically reducing bureaucracy. It shifts the focus from selective welfare distribution to a universal model that guarantees financial security to those who have contributed to the Italian economy.

Why Residency Requirements Matter

One of the core principles of this reform is prioritizing those who have actively contributed to Italian society. The five-year residency rule ensures that support is directed toward individuals who have integrated into the economy, paid taxes, and contributed to the social fabric. This criterion:

• Strengthens Social Commitment – Encouraging long-term residence fosters a sense of community and shared responsibility.
• Protects Public Finances – Without a residency requirement, an influx of new arrivals seeking immediate benefits could overburden the system, making it unsustainable.
• Aligns with International Precedents – Many social security programs worldwide, including housing and welfare support in several EU nations, require a minimum residency period.

Children of long-term residents are naturally included in the system through their parents, ensuring that families are supported without additional administrative complexity.

Key Benefits of a UBI for Long-Term Residents

• Universal Access – Every long-term resident adult receives financial support, reducing economic instability.
• Simplified Administration – Replacing the fragmented welfare system with direct payments cuts down bureaucracy and administrative costs.
• Economic Stimulus – With guaranteed income, consumer spending remains stable, boosting local economies.
• Social Equity – Ensures that those who have committed to residing and contributing to Italy receive due support.

Addressing Potential Concerns

Some may argue that excluding recent arrivals is unfair, but it is essential to recognize that most welfare systems worldwide incorporate residency-based restrictions. The goal is not exclusion but sustainability—ensuring that Italy can provide for those who have actively participated in its economy and society.

Additionally, humanitarian aid and emergency support would remain available for those in urgent need, ensuring that ethical considerations are balanced with financial pragmatism.

A Vision for the Future

A Universal Basic Income for long-term residents is a bold but necessary reform that aligns with Italy’s commitment to both social justice and economic stability. By ensuring that welfare is allocated fairly and efficiently, Italy can build a more resilient society where every citizen who has contributed has access to financial security.

It is time to rethink how we support our communities—by prioritizing long-term commitment, fostering economic stability, and simplifying access to essential resources. This is not just a policy proposal; it is a blueprint for a fairer and more sustainable future.

What are your thoughts? Would you support a UBI for long-term residents? Let’s discuss in the comments.