× Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

Forum Home  →  Discussion  →  Access to justice and advice sector issues  →  Thread

Is the contributory principle doomed?

Stevegale
forum member

Torbay Disability Information Service, Torbay NHS Care Trust

Send message

Total Posts: 342

Joined: 29 June 2010

I came across this 1998 DWP research report recently - http://campaigns.dwp.gov.uk/asd/asd5/ihr/ih039.pdf 

With the proposed 12-month limitation to contrib. ESA and the existing 6-month JSA rule (down from 12 months for unemployment benefit), plus, the proposed flat rate state retirement pension, does this mean the death of the contributory principle? 

The respondents in the report supported the contributory principle (the referendum about changing the system must have passed me by).  Interestingly,  1.1.2 (page 2) highlights that around 20% of the NI fund in 95/6 was spent on sickness benefits (the year that IB and its test was introduced). If the ESA test regime was designed to address the exponential uptake of IB, why is there a further need to limit the duration of contrib, ESA?

The answer appears to be because ‘we are all in it together’ for the economic crisis and has very little to do with insurance against adverse life events which we thought we were insuring ourselves against. I won’t be holding my breath for a rebate of my NI.

Vonny
forum member

Welfare rights adviser - Social Inclusion Unit, Swansea

Send message

Total Posts: 486

Joined: 17 June 2010

It also disguises how much tax the rich actually pay (or don’t pay)