Commenting on today’s publication of the Government’s Welfare Reform Green Paper, Stephen Haddrill, Director General of the ABI (Association of British Insurers) said:

“The ABI welcomes the Government’s proposals to improve rehabilitation services to those on Incapacity Benefit, but further measures are needed.

“The Government should look to the private sector to help injured people to a secure income whilst reducing the cost to the State.  Already, 6.5 million people are insured by their employers to meet their care, rehabilitation and income replacement needs, and in 2004, over £3 billion was paid to replace lost income and meet healthcare needs. 

“These numbers would increase substantially if the Government gave modest tax incentives to employers to join these schemes.  This in turn would help to reduce the number of Incapacity Benefit claimants by the Government’s target of one million.

“The ABI’s proposals to improve the personal injury compensation system and increase rehabilitation provision must be taken up by the Government.  With new tax incentives, an increased role for the HSE, and a system of accreditation for rehabilitation qualifications, insurers could provide care and pay out benefits more quickly, helping more people back to work more quickly.”

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