For Us All: Redesigning social security, for the 2020s.
This Fabian Society report examines the long-term future of social security, as part of a strategic agenda for raising British living standards following the UK’s decision to leave the EU.
It considers that social security for pensioners is now on a strong and sustainable footing but that the system for non-pensioners will be worse in 2020 than it was in 2010 – and will carry on getting worse, unless policy changes.
The report proposes a “blended system” with four tiers:
- Universal: An ‘individual credit’ for adults and a ‘child credit’ for children
- Contributory: National insurance and employment based benefits that match the generosity of the state pension, a new system of post-19 education funding and the option of ‘time-credits’
- Private provision: Opt-out, match-funded savings accounts for all, and the piloting of income protection insurance
- Means-tested: Universal credit to become a generous household-based means-tested top-up to the other individual-based tiers of support.
The report also highlights ‘the problem of rent’ which cannot be solved by the social security system alone. It calls on the Government to take action to stabilise house prices and build more homes for social rent.
Related item: DR UK says all ESA claimants should be exempt from the benefit cap
