§ Mr. Bellingham
To ask the Secretary of State for Work and Pensions what steps his Department is taking to reduce the burden on employers' liability compulsory 1117W insurance on small businesses with good health and safety track records; and what legislative changes are proposed. 
§ Jane Kennedy
The Employers' Liability Compulsory Insurance (ELCI) Review identified a number of steps that would help to reduce the burden of ELCI on small businesses with good health and safety track records.
Firstly, the Department for Work and Pensions is currently reviewing ELCI in respect of those limited companies in the UK where the owner is the only employee. If a decision is made to remove the requirement for ELCI from such companies, then any legislative change can be expected in the UK early in 2005.
The Department is keen to see a more risk based approach to the underwriting of risks. The 'Making the Market Work' initiative run by the Association of British Insurers, and the developing Health and Safety Executive Management Performance Index for small businesses, will both help to ensure that insurers are able to reflect good health and safety practices in the terms they can offer.