This chapter examines the relationship between automation, income, and inequality. I postulate that increasing automation reduces waged income, necessitating an increase in social welfare. I then explore the structural causes of income inadequacy, highlighting how technological advancements decrease labour demand and exacerbate wage inequality. Using UK data, I illustrate the growing disparity between high-income professionals and low-wage workers, showing the failure of work and current welfare policies to mitigate poverty. I propose a hybrid income system combining a low universal basic income with increased targeted welfare with reduced conditionality, to address these challenges.