Workers could be forced to pay at least £5 a week to private insurers to receive higher benefits, under new plans being considered by the Tories.
The proposal included in a report from the right-wing think tank Policy Exchange, who have close ties to the Tories, would see people who work more than 20 hours a week paying into a compulsory “collective insurance scheme”.
> As well as the compulsory National Insurance ?
Policy Exchange argue that this would help restore the “contributory principle” in the benefits system. The more workers paid into the private insurance scheme, the more they would be able to draw out if they lose their job.
> But surely National Insurance is the “contributory principle” in the benefits system ?
Contributory benefits accounted for 41% of all benefit payments in the 1970’s. This has now fallen to just 10%.
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sdbast 