Many State benefits are means tested but the levels of incapacity, unemployment and death grant are a very good indicator of what support is realistically available. Making this visible on a P60 would seem to be a simple change to passive wording, and support the Government’s stated aim of making Society more resilient through encouraging those able to do so to take more responsibility for themselves.
Companies that provide employee benefits often bemoan the lack of value placed on them by employees, who tend to focus primarily on the salary and maybe nowadays a little more on any pension provision. Death in service, income protection/sickness/incapacity benefits and, for the few, private medical insurance benefits may become more valued if placed on the P60. Companies have all this data at an individual level.
When discussing this with colleagues I have had a few challenges. "What about the self-employed?" A fair comment, it won’t work for everyone but if it does for a large part of the population isn’t it still worth doing? "The Government won’t want people to understand the very low level of support it provides". Well they are saying publically they do, so let’s challenge. "It will add more administrative burden to small employers". I agree this has to be avoided but if the small employer doesn’t provide employee benefits it’s only the State information in the form of standard text that needs to be added, which sounds very simple, and if they do provide benefits I’d expect them to want to promote them.
So my grand idea is for a P60 that says what you have earned in the last year and what cover you have in place if you were to become unable to work through incapacity, unemployment or death. Split by State and employer provision. Ideally also showing the gap between income and protection but accepting that might be a step too far for a simple statement.
Though it is far from a fully thought through concept, is this something that you would support? Do you believe it would it help engage consumers with their financial health? Is it a concept worth the industry progressing?