Insurance `could replace welfare`
Radical welfare plans could see £17 billion worth of benefits a year replaced by private sector insurance, it has been revealed.
Proposals from a group co-chaired by Chancellor Alistair Darling would
mean that some sickness and unemployment benefits would be contracted
out to the private sector in an apparent bid to cut the burden on
taxpayers.
The move would be a massive reworking of the 1945 Labour government's
cradle-to-grave welfare reforms. It could see life insurance used to
fund long-term care for the elderly, rather than money from the public
purse.
A more controversial aspect of the plan - backed by an industry working
group co-chaired by the Chancellor and Andrew Moss, chief executive of
insurance group Aviva - would mean compulsory insurance for safety nets
such as unemployment benefit.
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."
He argued that the public already accepts compulsory insurance when driving their car.