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Overview of Social Security (Benefit Categories and Work Focus) Amendment Bill

Overview of Social Security (Benefit Categories and Work Focus) Amendment Bill. Some of the major changes:. Changes to structure of benefit categories New investment approach (based on actuarial costs) Work Preparation, Work Ability testing and Pre-benefit activities

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Overview of Social Security (Benefit Categories and Work Focus) Amendment Bill

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  1. Overview of Social Security (Benefit Categories and Work Focus) Amendment Bill

  2. Some of the major changes: • Changes to structure of benefit categories • New investment approach (based on actuarial costs) • Work Preparation, Work Ability testing and Pre-benefit activities • Introduction of “social obligations” • Increased use of sanctions • Contracting out of services • Provision of goods and services by W & I “preferred suppliers”

  3. Changes to structure of benefit categories • Jobseeker Support – replaces current UB, SB (with temporary work-test waiver) and DPB for those with youngest child aged 14+ years • Sole Parent Support – replaces DPB-SP for those with youngest child under 14 • Supported Living Payment – replaces IB and DPB-CSI Also: Youth Payment & Young Parent Payment

  4. Issues with changes to categories • People currently receiving Sickness Benefit will have work test exemption • however through increased work ability testing they may still be required to work part-time – could be based on W&I doctor recommendations • Those currently receiving DPB with child 14 years plus will become Job-Seekers – changes how these parents are seen – they are now “job seekers”- devalues care work • Those currently receiving IB (who will move to Supported Living Payment), are expected to decrease over time All who receive new Supported Living Payment will be work ability tested – with aim of moving them off this

  5. New investment approach (based on actuarial costs) – underpins reforms • Government is moving to an “Investment Approach” based on actuarial cost • Actuarial cost is measured by lifetime cost of people receiving a beneft • Main focus of investment approach is to reduce spending on welfare • Proposed as a way of investing in those most likely to be “benefit dependant”

  6. Issues with Investment approach (based on actuarial costs) • Fundamentally alters what social security is for • Main MSD focus to decrease welfare cost with no thought to wellbeing • Measurement hides fact that most beneficiaries move on and off benefit when work/family/health allows • As financial cost of those receiving DPB and IB is greatest, govt plans to focus on decreasing this area (whatever the cost to well-being) • Likely that many people will be moved off benefit • Claims investment through provinding “wrap-around” support to decrease $$$ spent – reality of reforms however is just an increase in sanctions and obligations • Not investing in decent job creation • MSD funding to include performance rewards and penalties

  7. Work Preparation, Work Ability testing, Pre-benefit Activities • New Work Preparation requirements for: • those receiving Sole Parent Support when youngest child is 3 • For some receiving Supported Living Payment (if caring for sick and infirm) • For those receiving Job Seeker Support (who are exempt from work test based on sickness/disability) • New Work Ability Testing for: • Those receiving Supported Living Payment • For those receiving Job Seeker Support (but would otherwise have been receiving sickness benefit) • Pre-benefit activities for benefit applicant and their spouse/partner such as: • Attending seminars, training, interviews...

  8. Issues with Work Preparation, Work Ability testing and Pre-Benefit Activities • Work Preparation: • can be anything W&I think is suitable I.e training, attending W&I seminars... • For those with children could prove difficult with child care and transport costs • Doesn't reverse cuts to the Training Incentive Allowance • For those who are sick, living with mental illness or disbaility could prove stressful (plus additional transport costs) • Sanctions for failure to comply (will be discussed shortly) • Work Ability Testing • Has had horrific effects in the UK • Could be by contracted W&I “hatchet” doctors or contracted service provider • Doesn't remove barriers to work such as work place accesbility • Sanctions for failure to comply • Likely to be used to move as many people as possible off Supported Living Payment with no thought of wellbeing • Pre-Benefit Activities • Makes it harder for people to get on benefit • Sanctions for applicant and partner for non compliance

  9. Introduces a host of “Social Obligations” • Introduction of social obligations for all beneficiaries with children: • Children 3-4/5 must be in ECE • Children/babies must be up to date with all core wellchild checks • Children/teens 5 plus must attend school • Children must be enrolled with a registered health professional

  10. Issues with Social Obligations • Fundamentally questions the decision-making of parents who receive a benefit • Removes the right for beneficiary parents to decide what is right for them and their families • Sanctions any “failure” to comply with 50% benefit cut • Does not remove barriers to services, such as availablity or cost

  11. Introduces host of benefit sanctions • Sanctions for: • Failing drug test • Failure to comply with Social Obligations • Failing to report to Police if have Warrant to Arrest • Turning down one “acceptable” job • Failing to comply with Pre-benefit activities, Work Testing, Work Preparation • Failure to see any contracted service provider • …....

  12. Issues with Sanctions • Fundamentally questions beneficiaries decision-making • It's near impossible to get by on current benefit levels as it is, sanctions will only further impoverish families and their children • Will increase stress and fear (already stressful being under the scrutiny of W&I) • Does nothing to alter issues with current economic situation – merely individualises unemployment

  13. Allows for contracting of services and mandatory use of “preferred suppliers” of goods and services • All beneficiaries and their spouse/partner will be required to see a contracted service provider when requested by W&I as often as the provider “reasonably” requires • This could be for: • Any interivew • Any assessment • W&I can require goods or services purchased with disability allowance or emergency grant to be purchased from a “preferred supplier” • These goods or services may be paid for directly by W&I

  14. Issues with contracted services and preferred suppliers of goods and services Issues with contracted service providers: • In the case of Work Ability testing – have seen dire consequences in the UK • There will be incentives for providers – can move onus away from wellbeing as an outcome • Privacy issues in terms of sharing personal information Issues with preferred suppliers: • Not always best price • Don't always provide exact required item • Removes flexibility of payment/choice

  15. Questions?

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