Canada Life is urging employers to offer group income protection as an employee benefit in light of the Government’s welfare reform bill, due to be introduced this month.
The reform will replace the existing incapacity benefit with employment support allowance, which could result in many people receiving lower benefits.
Canada Life group legislation manager Howard Rayner says the welfare reform bill, which is aimed at getting more people back into work, will cause quite a shake up for consumers who rely on benefits.
He says those with severe disabilities will be eligible for higher benefits as they cannot undertake any form of work but those who are deemed eligible will have their benefits reduced if they do not show a willingness to engage in the work-related activities their disability allows.
He says: “Now is an opportune time for employers to review their scheme benefits before the reform and to seriously consider introducing group income protection to their benefits package. With fewer people eligible for incapacity benefits group income protection is set to become much more valuable for employees.
“It is also very important that intermediaries take this opportunity to give their clients advanced warning that the reform is due to come into place, and to inform them of the proposed changes.”