Queen’s Speech – Welfare Reform Bill
“The tax and benefits system will be made fairer and simpler.”
The purpose of the bill:
To simplify the benefits system in order to improve work incentives.
The main benefits:
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Making the benefits system less complex
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Improving work incentives
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Getting the five million plus people languishing on benefits into work and out of poverty
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Reducing the scope for fraud and error
The main elements:
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Removing the confusing complexity of the benefits system, which too often leaves people afraid to make any change to their circumstances and can be a barrier to moving from benefits to work
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Making people see a gain when entering work through simplifying the benefits system
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Reducing the scope for fraud and error by making the benefits system simpler
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Reducing unnecessary administration of benefits. Currently people can have overlapping entitlements or switch between different benefits – around 200,000 people a year cycle between Jobseeker’s Allowance (JSA) and Incapacity Benefit (IB/ Employment and Support Allowance (ESA)
Effect on insurance:
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More important than ever for people to have insurance
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People cannot rely on the state
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Insurers with payment restrictions based on state benefits may have to amend their cover
Income protection insurance: News update: 29 May 2010
