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MoneyWeek article: How to beat the welfare cuts

Journalist: Marc Shoffman, Freelance

ended 20. March 2025

I am seeking comments for a MoneyWeek article on how people can effectively try to beat the government's welfare cuts by ensuring they have proper protection products in place.

Are products such as income protection and critical illness even more vital now that the government intends to cut universal credit and toughen criteria for personal independent payments. Is it best to be prepared now even if you are healthy and if there  are family issues of certain conditions?

Can insurance be used to beat the benefit cuts?

Kind regards, Marc

4 responses from the Newspage community

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Editor
Kate Underwood
Founder & Chief People Strategist at Kate Underwood HR and Training
With benefit cuts looming, employees without a financial safety net face real risks. For employers, this isn’t just a welfare issue—it’s a workforce one. Rising stress and financial insecurity lead to higher absenteeism and lower productivity.

These days, income protection, critical illness cover, and even access to financial advice are proving far more valuable to employees than free gym memberships and the occasional box of donuts. Offering real financial security isn’t just a perk—it’s a business-savvy move to keep teams stable and focused.

Insurance won’t erase benefit cuts, but it can soften the impact—for everyone.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
With welfare cuts on the horizon, having the right protection in place is more important than ever. Income protection and critical illness cover can provide financial security if illness or job loss strikes, reducing reliance on state benefits that are becoming harder to access. Even if you’re healthy now, securing cover early ensures affordability and avoids exclusions for pre-existing conditions. Those with family histories of certain illnesses should plan ahead, as waiting could limit options. While insurance can’t ‘beat’ benefit cuts, it offers a crucial safety net, ensuring financial stability without relying on an increasingly restrictive welfare system.
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Martin Briggs
Independent Financial Adviser at The Retirement Studio
Life Protection Insurance can be a smart way to prepare for these changes and protect your financial future, especially as government support may become more limited. These changes could make it more difficult for individuals to rely on state benefits in times of illness or injury. One of the best times to take out these policies is when you're fit and well, as premiums are typically more affordable at that stage.
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Steve Humphrey
Adviser & Founder at The Mortgage Pod
With the government tightening welfare benefits, having financial protection like income protection, critical illness cover, and life insurance is more crucial than ever. These products provide financial stability if illness or injury prevents work, especially as state support becomes harder to access. Preparing early is key, as waiting until health issues arise can make cover more expensive or unavailable. Given potential family medical histories and reduced government aid, securing protection now ensures long-term financial security and peace of mind.