Surprise support for state benefits
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.STATE benefits must remain the main source of provision for the unemployed and those suffering long-term sickness and disability, the Government's own social security advisers said yesterday. In addition, the basic state pension should retain 'a fundamental role' in ensuring a minimum retirement income.
'The strength of the state scheme is its universal coverage, regardless of risk,' Michael Bett, chairman of the Social Security Advisory Committee (SSAC), said. He added: 'We see a continuing need for state benefits, both contributory and income-related.' Developments in private provision should be in addition to, not an alternative to, state schemes.
The comments come as a blow to those ministers and Conservative backbenchers who are looking for areas of the social security system from which the state can withdraw.
The SSAC's report concluded that 'state benefits must remain the major source of provision for contingencies such as unemployment, incapacity and disability. There is, at present, little scope for any substantial involvement by private sector insurance, except possibly in the area of insurance for mortgages when people become unemployed.'
It said many more people now benefited from occupational and personal pensions. For the low-paid, those with interrupted work patterns, women and vulnerable groups such as the disabled, 'adequate state provision in retirement is vital'.
The SSAC says those most at risk of unemployment due to their type of job, or family and health history would face the highest premiums. The long-term sick and disabled would be the least likely to obtain affordable private cover.
Private insurance might be able to cover mortgage payments for short-term unemployment or incapacity. For those on income-support, continuing help with housing costs will be needed, the committee said. If the private sector is to take the short-term load, 'the alternative form of insurance should be available and in place before any consideration is given to reducing state support for housing costs'.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments