This system only works if you are not basely entitled to certain amount unless you work or attempt to work. In my world, ou would not be able to earn more than 300% of the average wage, the rest being invested in startup businesses. Everyone would by default have a wage boost which was proportional to the amount they earn. As in Britain now, anyone earning less than you can actually survive on would get “topups” through a benefits system. As for normal middle class earners, their topups would depend on what else they did in their community and as entrepreneurs. As someone said before, this would help to nurture entrepreneurship and community development.

None of the topups/basic wage would be entitled. It wouldn’t be your right as a british citizen, it would be your privilege as a WORKING citizen to have some extra help when your wages are small but your job vital. Of course the mandatory investment scheme would be compulsory, but with the person who has earnt the 300% having a say where their money goes. By earning so much, they have a bigger say in where their tax £s go.

All of this would be managed through an online system – startups who receive capital from mandatory investors would be able to see exactly whose money they are receiving, and the investor would have access to data such as profit margins etc.

I’ve also thought of a “sponsor a family” kind of scheme whilst writing this – families who earn very little can anonymously ask for certain amounts of money for certain projects, eg buying all new school uniforms, Little Johnny going to summer school, etc. Those who want to give directly would be able to match their donation not just to a cause but specific cases.

All in my dreams of a socialist state which actually worked for once.

a little comment on the 2nd choice (No. A system like that would kill entrepreneurship. People would not have the drive to create and invent, because more often than not, that drive is NOT a drive to help the world but a personal drive to succeed.)
it is not true: entrepreneurship will not and can not disappear. the explanation is simple: men always seek improvement. the fact that our culture binds entrepreneurship to personal success is not definible as “natual”. it is just sad.
the same thing works well for money, too. we use money for a lot of reasons, and we are used to it, but this is not the natural way of “life”. money does not represent real material since 1970, when an american idiot decided to delete the gold/dollar exchange. the coin of reality, if any, should be will.
freedom is all. freedom to do nothing but the necessary and live in boredom, or freedom to work very hard and live in boredom. the quality of our life would depend on the quality of the people. but we shouldn’t force anybody to do anything.