Several big insurance firms in the UK—like Unum, Aviva, and Legal & General—have all refused to say if they pushed the government to make cuts to disability benefits.
What benefits are being changed?
The government’s Pathways to Work plan suggests replacing two current benefits—new-style ESA and new-style JSA—with a new unemployment insurance. This benefit would be paid at the same rate as ESA but would only last for a short time, perhaps six months.
After that, people would have to apply for universal credit, which has less generous support for disabled individuals and may come with stricter rules.
Why is this a concern?
Disabled people who currently receive ESA indefinitely could lose that stability. They would be affected in two big ways:
- Time limits meaning they might be forced onto less supportive benefits.
- Universal credit often has tougher requirements and lower disability top-ups.
Insurance companies might gain from this
If disability benefits are cut, more disabled people may feel the need for private income protection insurance—just the kind sold by companies like Unum and Aviva. Reports show that years ago, Unum lobbied hard for such welfare reforms.
Critics say they did so to make people more likely to buy their policies, increasing company profits.
No one is saying yes—or no
When journalists asked these seven insurers whether they’d lobbied the government, none confirmed or denied it. They either stayed silent or avoided answering.
The Department for Work and Pensions also wouldn’t say if it had been contacted by insurance firms, but insisted the decisions weren’t influenced by insurance interests.
Warning from disability advocates
Activists warn the changes could be harmful. Disability rights researchers like Mo Stewart say cutting ESA and adding pressure will lead to more people buying private insurance.
They see this as the welfare state being weakened for profit. Others describe it as “toxic and painful” for disabled individuals.
The government wants to simplify the benefit system and encourage more people—disabled or not—to find work. But many worry this will remove support and push people into buying private insurance.
The insurance industry gains if public help shrinks, yet refuses to say whether it fought for these changes. Disabled advocates call for more transparency and protection before making changes that could deeply hurt vulnerable people.
FAQs
Did insurance companies lobby the UK government to cut disability benefits?
While there is no confirmed evidence, many believe insurance firms like Unum may have influenced reforms that reduce support for disabled people. These changes could increase the demand for private income protection policies, raising concerns about profit-driven motives.
Why won’t insurance companies comment on ESA and JSA reforms?
Most major insurers have refused to answer questions, leading to speculation they may have supported or influenced these benefit changes. Their silence raises transparency concerns.
How do these changes affect disabled people?
Time-limited unemployment insurance means disabled people may lose long-term financial support and be forced onto less generous universal credit, affecting their wellbeing.
What is income protection insurance and why is it relevant here?
Income protection insurance pays people who can’t work due to illness or disability. With public benefits being cut, more people might feel pushed to buy such private policies.
What are disability advocates saying about this issue?
Activists and researchers argue these reforms harm disabled people and benefit insurers. They want more transparency and protection for vulnerable groups.
