David Cameron open to idea of workers saving up to fund own sick pay

PM's spokeswoman says he is prepared to consider making people pay into savings accounts to cover periods of illness or unemployment

David Cameron is prepared to look at making workers pay into flexible saving accounts to fund their own sick pay or unemployment benefits, Downing Street has confirmed.

The idea was first floated by Iain Duncan Smith, the work and pensions secretary, who said he was "very keen" to have a debate about encouraging people to use personal accounts to save for unemployment or illness, even though it is not official government policy.