A UBS solves the case better by directly providing services that would be unaffordable even with a UBI and by providing a “virtual income” through savings.

4.1.2. Universal basic services The proposal for UBS focuses on how people's basic needs can be met most reliably and fairly. Proponents argue that a universal and free, public or collective provision of basic services which directly address people's needs would be more efficient and effective than a market-based approach (Coote and Percy, 2020: 39–43). UBS advocates argue that markets can be unreliable in meeting people's needs, as demonstrated by inflated housing markets or high prices for public transport, especially in systems with private monopolies and complex pricing structures that disadvantage consumers (Bowman et al., 2014; Foundational Economy Collective et al., 2018). They hence argue that public provision can be more effective here: “Providing a single mother with a cash payment to fend for herself in an inflated housing market is not as effective as providing quality public housing” (Pavanelli, 2019). The arguments put forward by UBS proponents rest on specific assumptions: that UBI inherently favours market provision; that governments are not able or willing to regulate markets; and that governments are willing and able to provide high quality goods and services that satisfy basic needs. However, there is no reason why UBI could not be combined with collective provision or market regulation; and public or collective provision does not automatically guarantee that this provision is adequate for satisfying needs. In addition to addressing needs satisfaction directly, UBS could contribute to needs satisfaction indirectly by increasing people's ability to engage in activities that they value. UBS would provide an in-kind, “virtual income” or “social wage” because individuals would no longer need to pay for these services from their income (Coote and Percy, 2020; Gough, 2019). Similar to UBI, this would make people less dependent on the labour market, increase their bargaining power in the workplace, and free them up to pursue activities that they value and that can address needs of others too, such as care and voluntary work. The provision of UBS would also create higher demand for workers in basic services sectors, including health and social care, education, housing, food production, energy, public transport and communication services. Many jobs in some of these sectors require direct personal interaction and are more difficult to rationalise. Since these jobs would be located in the public sphere, they would be sheltered from pressures of international competition (Coote and Percy, 2020: 48; Foundational Economy Collective et al., 2018: 3). This is a benefit in a context with low or no economic growth as it provides more stable job opportunities.