Think tank Reform has proposed a welfare system that would see people pay into a protection account, alongside personal accounts, once they reach working age.

Reform’s proposals do not include life cover automatically, but suggest that flexible personal welfare accounts would be set up in 2015 to allow people to protect themselves from unforeseen costs that might arise from unemployment, disability, and parenthood or in retirement.

People at working age would be free to choose a welfare insurance provider to open their personal welfare account, but if no provider is chosen, then they would be allocated one.

There would be a minimum contribution level and individuals could top up their coverage through insurance products like income protection and life insurance.

Social security benefits should be replaced with private provision, with private insurance being a potentially useful but largely under-utilized tool, particularly for disability but also in other areas.

Reform is an ultra right-wing group, and although the rather extreme plan is unlikely to happen, the effect of their thought processes will affect political thinking.


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