HC Deb 12 December 2002 vol 396 cc23-4WS
The Minister for Work (Mr. Nicholas Brown)

In the Pre-Budget Report of 27 November my right hon. Friend the Chancellor of the Exchequer said thatPremiums for Employers' Liability Compulsory Insurance (ELCI) have increased substantially in recent months, affecting many businesses, and especially Small and Medium Sized Enterprises in high-risk sectors. Following a request from the Government, Fhe Association of British Insurers (ABI) and trade associations are working to ensure that affordable cover is available. The Government has engaged with a wide range of stakeholders including the CBI, TUG and ABI to discuss the long-term issues affecting ELCI. The Department for Work and Pensions will now undertake a formal review of the operation of ELCI. Full details of this review will be announced shortly. I am pleased now to announce the start of that review and its terms of reference.

The terms of reference of the review are to: Survey the operation of ELCI, taking into account any relevant aspects of the state benefits systems; Assess the scale and nature of the current difficulties being experienced in relation to ELCI, in particular the extent to which these difficulties are likely to be short-term only, repeated in the future or permanent; Make recommendations to Ministers as to the case or otherwise for reforming ELCI; and If a case for reform is found, make recommendations as to the objectives, principles and high-level options for such reform. The review will be led by the Department for Work and Pensions, but will have the close involvement of a number of other Government Departments including HM Treasury, the Department of Trade and Industry and the Lord Chancellor's Department. It will report to Ministers in Spring 2003.

Written contributions to the work of the review are welcomed. Any such contributions should be sent to the ELCI REVIEW TEAM at the Department for Work and Pensions, The Adelphi, Level 2, 1–11 John Adam Street, London WC2N 6HT by Monday 17 February 2003. I have arranged for further details to be made available on the Department of Work and Pensions web site at: www.dwp.gov.uk/publications/2002/index.htm.