Sickness insurance better than benefit?

The Welfare Working Group’s pronouncement that the benefit system is unsustainable is not unexpected.

One of the reasons our economic growth is so slow is that the number of people getting some or all of their income from the public purse is so high.

The people hurt most by this are those on low wages who find themselves little if any better off than some on benefits.

Those who can work should do so and changing incentives sp people are less likely to go on them and move  off them more quickly is one way to reduce the welfare burden.


The report also echoes Ms Rebstock’s call for New Zealand to look at insurance-based welfare systems, like those in Canada, where workers pay insurance premiums.

“Unlike an insurance-based system, the [existing] benefit system has weak incentives for people to reduce the chance of adverse events occurring,” the report says.

This would make sickness more like accidents where workers and businesses pay premiums.

I am cautiously supportive of that.

Having more people in work and paying net tax would reduce the welfare burden which has benefits for the people concerned and society as a whole.

One Response to Sickness insurance better than benefit?

  1. Gravedodger says:

    Although I accept that suffering ill-health is an added financial burden on anyone including a beneficiary, there does seem to be some very athletic and active persons among the clients of Her Majesties Justice system described as Sickness beneficiaries and I often wonder how the figures would present if the sickness benefit was aligned with the Unemployment benefit in reward terms.
    I just love to paraphrase Margaret Thatcher’s observation “that socialism will only survive until there are no people left to pay for it.

    Sooner or later this nation must review its welfare system and just as any financial collapse will be more successfully and less painfully resolved if steps are taken early rather than later, the same applies here but so long as electability and resolution are so closely aligned “that just aint gonna happen” and completely broke will be the catalyst to such a sort out. Whether that will be the welfare system, the country or more likely both, hopefully I wont be here to witness it, as it is going to be very very messy.


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