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Benefits Simplification

The contributory principle is important, and it was addressed in the report, which makes it clear that there are real difficulties, not least in terms of people's understanding of the benefits system. We have not proposed the abolition of the contributory principle across the board, but the Committee's report makes interesting reading for anyone who might want to further that agenda. The contributory principle certainly has implications for the complexity of the system and thus on people's understanding of it, so the hon. Lady makes an interesting and important point. The single working-age benefit would also have advantages in terms of incentives to work. As identified in the report, drive, vision and leadership are needed to set that high-level objective and make progress towards it over time, in the way in which the Government of New Zealand have done. I had the chance to discuss that with some of the officials in the department working on the issue in that country, and they recognised the complexity of the transition, including grandfathering existing claimants and so on. Nevertheless, it would be a clear objective. I think that is the right direction for our benefits system.