"We appreciate that this is a challenging policy area for any government to address, particularly for a Labour administration committed to fairness, opportunity, and the protection of those in need."
- Jo Miller, Managing Director of the IPTF
In response to the UK government's intention to reform the welfare benefits system to save £5bn, the Income Protection Task Force (IPTF) has published an open letter calling for collaboration with the protection market to ensure that welfare reform is both “compassionate and effective.”
Jo Miller, Managing Director of the IPTF, explained, “While there is no doubt that the welfare system needs a radical overhaul to create necessary savings, this is inevitably going to create concern in many parts of society about the fairness, effectiveness, and impact of an overhaul of this most sensitive area.
“We appreciate that this is a challenging policy area for any government to address, particularly for a Labour administration committed to fairness, opportunity, and the protection of those in need. We believe strongly that the protection insurance industry can play a pivotal role in supporting your efforts to create a system that is both fairer and more comprehensive.”
She said: “Winston Churchill famously said, ‘If I had my way, I would write the word ‘insure’ over every door of every cottage and upon the blotting pad of every public man, because I’m convinced that, for sacrifice that are conceivably small, families can be secured against catastrophes which otherwise would smash them forever.’
“Long-term disability is one of those catastrophes to which he referred. Not only does it create huge misery for those afflicted, but it creates a huge drain on the public purse.” Jo believes the increase in mental health conditions has “exacerbated the situation and increased the strain on already creaking welfare support services.”
Highlighting that the IPTF has long championed the value of Income Protection (IP), Jo explained that “beyond financial support, the industry has a strong track record of delivering meaningful return-to-work assistance through vocational rehabilitation, early intervention, and specialist support services.
“These initiatives have demonstrably helped people regain employment, reducing reliance on state welfare while improving overall wellbeing and economic productivity. Given the scale of welfare reform you seek to undertake, we see a significant opportunity for collaboration between government and the protection insurance industry.”
The taskforce would welcome the opportunity to discuss the best way to ensure that individuals who take responsibility for their financial security through IP policies are incentivised or, at the very least, not penalised within the welfare system; how vocational rehabilitation and added-value services within IP propositions effectively support claimants in returning to work; supporting renters as well as homeowners in mitigating the financial impact of ill-health or injury, helping to maintain housing stability.
“We recognise that genuine reform requires input from multiple stakeholders, and we believe that engaging with the protection insurance industry will add significant value to the government’s approach. We look forward to the opportunity to work together in ensuring that welfare reform is both compassionate and effective,” Jo concluded.
