Making Contributions Count: Reforms to create a social security system for the 21st Century

The principle of having a'contributory' element to the welfare system has shrunk massively since the late 1970s 1978/79 2014/15 (real terms, 2014/15 prices) (real terms, 2014/15 prices) Statutory Maternity Pay Contributory - £2,400m Child Benefit Child Benefit Bereavement Benefits Contributory - £9m Non-contributory - £11,767m Bereavement Benefits Contributory- £563m Non-contributory - £11,767m Contributory - £2,150m Unemployment Benefit Contributory - £2,690m JSA Maternity Allowance Contributory - £447m Maternity Allowance Contributory - £400m Contributory - £487m Non-contributory - £3,175m Maternity Grant Contributory- £68m Income Support Social Fund Non-contributory- £212m Death Grant Income Support Contributory - £68m Non-contributory- £6,645m Non-contributory - £2,823m Tax Credits Non-contributory - £28,439m State Pension Contributory - £86,437m Non-contributory - £84m State Pension Contributory - £32,146m Non-contributory - £157m Over-75s TV Licenses Non-contributory - £631m Christmas Bonus Contributory - £409m Non-contributory -£21m Christmas Bonus Contributory - £123m Non-contributory - £31m Housing Benefit Non-contributory - £3,069m Winter Fuel Payments Non-contributory - £2,146m Housing Benefit Non-contributory - £24,579m War Pensions Non-contributory - £1,447m Invalidity Benefit Contributory - £3,576m Pension Credit Non-contributory - £6,704m Mobility Allowance Non-contributory- £200m DLA/PIP Non-contributory - £14,809m Sickness Benefit ESA Contributory - £2,963m Attendance Allowance Non-contributory - £715m Attendance Allowance Non-contributory - £5,522m Non-contributory - £8,306m Carer's Allowance Non-contributory - £17m Industrial Injuries Benefit Non-contributory - £1,077m Carer's Allowance Non-contributory - £2,267m Industrial Injuries Benefit Non-contributory - £909m Severe Disablement Allowance Non-contributory- £294m Severe Disablement Allowance Non-contributory - £537m Incapacity Benefit Contributory - £154m Contributory element as proportion of total benefit spend Benefit Class 1978/9 2014/5 Pensions 95.25% 89.87% We want to re-introduce a "contributory" principle to the welfare system, so people who have made more contributions are entitled to more support if they need it. Benefit type changes from 1978/9 to 2014/15 Working Age Disability and Carers Housing Other 22.78% 7.65% Unemployment Benefit replaced by JSA. Invalidity Benefit and Sickness Benefit replaced by Incapacity Benefit (in turn replaced by ESA). Mobility Allowance now forms the mobility component of DLA/PIP. Matemity Grant and Death Grant folded into the Social Fund. 73.9% 12.22% 0% 0% Policy Exchange 95.11% 79.35% To find out more, visit bit.ly/pxcontributions