State-to-private switch is costly

Switching welfare protection from the state to private insurance could result in millions of average and low-earners having to pay more from their cover. After analysing data from 10,000 adults looking at cover for mortgage payments, long-term care or to replace income during long- term sickness, researchers concluded that social security schemes may offer better value for money.

In the study, supported by the Joseph Rowntree Foundation, the authors found that, to cover himself in just these three areas, a 45-year-old married man with average earnings would typically have to pay pounds 900 a year - equivalent to 6p in the pound on income tax.

Private Welfare Insurance and Social Security: Pushing the Boundaries, pounds 13.45, York Publishing Services, 64 Hallfield Rd, Layerthorpe, York YO3 7XQ. Tel: 01904 430033 Glenda Cooper