Is it imaginable that we could have a Labour government privatising the welfare state, for some of the cabinet it seems a long held wish or is it just a quick way out of the Financial Crisis?
Nothing is Unimaginable for any Party, Now!
Nothing is Unimaginable for any Party, Now!
Welfare Privatisation
Private insurance could replace benefits in move to save £17bn
Welfare benefits could be replaced by private sector insurance under radical proposals from a group co-chaired by the Chancellor.
The plans could see some sickness and unemployment benefits contracted out to the private sector, reducing the burden on taxpayers.
The industry claims it could take over about a twentieth of the welfare state - around £17 billion worth of benefits a year.
The move would mean a major rolling back of the cradle-to-grave welfare state.
Life insurance could be used to fund long-term care for the elderly, for example.
More radically, it could mean compulsory insurance for safety nets such as unemployment benefit.
Although highly controversial, the proposal carries the weight of an industry working group co-chaired by Alistair Darling, the Chancellor, and Andrew Moss, chief executive of insurance group Aviva.
Mr Moss said: "We are saying there is a debate to be had. The industry does have the capacity to take on more of these risks."
Pressure is growing for curbs in the welfare system to help rein in public spending.
Insurers have already moved in where benefits have been cut back to save money, such as offering policies to meet mortgage payments for people who lose their jobs.
Mr Moss said the public already accepts compulsory insurance when driving their car. "On a daily basis, things go wrong in people's lives and the individual, or the Government, or insurers have to pick up the bill."
Source; This is London
www.thisislondon.co.uk/standard/article-23724389-details/Private+insurance+could+replace+benefits+in+move+to+save+17bn/article.do
Insurers 'could provide welfare'
Mr Moss said the report was simply a "discussion document" and was not giving any firm recommendations, but encouraged others to take up the debate.
"Taking steps now will build customer confidence," he said.
Source; BBC
news.bbc.co.uk/1/hi/business/8170265.stm
Welfare benefits could be replaced by private sector insurance under radical proposals from a group co-chaired by the Chancellor.
The plans could see some sickness and unemployment benefits contracted out to the private sector, reducing the burden on taxpayers.
The industry claims it could take over about a twentieth of the welfare state - around £17 billion worth of benefits a year.
The move would mean a major rolling back of the cradle-to-grave welfare state.
Life insurance could be used to fund long-term care for the elderly, for example.
More radically, it could mean compulsory insurance for safety nets such as unemployment benefit.
Although highly controversial, the proposal carries the weight of an industry working group co-chaired by Alistair Darling, the Chancellor, and Andrew Moss, chief executive of insurance group Aviva.
Mr Moss said: "We are saying there is a debate to be had. The industry does have the capacity to take on more of these risks."
Pressure is growing for curbs in the welfare system to help rein in public spending.
Insurers have already moved in where benefits have been cut back to save money, such as offering policies to meet mortgage payments for people who lose their jobs.
Mr Moss said the public already accepts compulsory insurance when driving their car. "On a daily basis, things go wrong in people's lives and the individual, or the Government, or insurers have to pick up the bill."
Source; This is London
www.thisislondon.co.uk/standard/article-23724389-details/Private+insurance+could+replace+benefits+in+move+to+save+17bn/article.do
Insurers 'could provide welfare'
Mr Moss said the report was simply a "discussion document" and was not giving any firm recommendations, but encouraged others to take up the debate.
"Taking steps now will build customer confidence," he said.
Source; BBC
news.bbc.co.uk/1/hi/business/8170265.stm
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Just so I understand
28.07.2009 02:17
This would save British Industry 9% of their total wages and salaries bill and reducing tax receipts by the same amount. That reduces the amount of money in the Welfare System and so accelerates the break up of the Welfare State. The Magic disappearing National Insurance would then be hiked onto Employees (as Employers would have ceased to pay it) effectively subsidising industry to the tune of 9% - because the NI contributions for the Employee are unlikely to be abolished.
The consultation document does not mention that National Insurance was an Insurance scheme instituted for these eventualities. Given the crapulent state of the Financial and Insurance Sector over the last few years, can they actually be trusted to deliver these products (even if people thought they were ideologically sound)? I think not. The whole scheme simply passes a subsidy to the Insurance Industry as profits on premiums and a subsidy to employers as they would bring pressure for relief from Employers National Insurance contributions.
Not to mention the potential for misselling.
A Passing Shopper