Privatising benefits in discussion

The Association of British Insurers (ABI) is in talks with the government about the private sector taking responsibility for the provision of welfare benefits.

Nick Kirwan , assistant director at the ABI, said the trade body is exploring the possibility of life companies providing incapacity benefit and jobseeker’s allowance.

‘We are engaged with the government and the Department for Work and Pensions (DWP) and Treasury officials over models and viability,’ he said.’

With JSA(C) only payable for 6 months and all dependents etc. additions abolished for new claims, the Universal Credit white paper proposals to limit ESA(C) to 12 months and possible reform of Retirement Pension it does rather question the future purpose of NI contributions apart from a seperate form of income tax.

But could the private sector give a better deal for those on low income than NI conts now ‘buy’?