National salary insurance: Reforming the welfare state to provide real protection

Article

This paper suggests that the government should establish National Salary Insurance, which would provide people with much higher levels of support if they lose their job but require this support to be repaid when they return to employment.

Over the last few decades, support for the welfare state has been undermined by a pincer movement of attacks. It has come to be seen both to reward people who do the wrong thing and to let down those who do the right thing. In short, it is thought to be not demanding enough of people who don't work and not protective enough of those who do.

In response, successive governments have increased conditionality for those on benefits. This has strengthened the idea of mutual obligation, while also increasing people's engagement with the world of work (improving their chances of finding a job). But these reforms have done nothing to address the concern that the welfare state does not provide real protection, when it is needed most, for people who have contributed into the system.

Related items

  1. A group of teenage students wearing maroon t-shirts smiling and responding to a teacher during a rehearsal

    Rethinking child poverty through enrichment accounts

    Every child should have access to activities that build confidence, skills, and opportunity, regardless of income.
  2. The Houses of Parliament and Big Ben, River Thames and Westminster Bridge

    Taxing choices: Taking the public’s temperature ahead of the budget

    The stakes for a government are rarely higher than at a budget. Every chancellor has dealt with this differently. Ken Clarke would draft his budget speech with cigars and whisky, Gordon Brown pored over every word in what officials called…
  3. Scottish parliament building at Holyrood and Calton Hill, Edinburgh

    Great expectations: Rejuvenating the national debate in Scotland

    Fresh IPPR Scotland polling shows that politicians must raise their game if next year’s election is a to be serious debate about the challenges facing Scotland and potential solutions.