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

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

2. Some of the major changes: • New 'Investment Approach' (under-pins Bill) • Changes to structure of benefit categories • Extenstion of Work Preparation and Pre-benefit activities and new Work Ability Assessments • Introduction of “social obligations” • Increased use of sanctions • Contracting out of services • Provision of goods and services by W & I “preferred suppliers” and direct payment for these

3. 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 benefit • 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”

4. Issues with Investment approach (based on actuarial costs) • 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, SB 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 e.g through sanctions • Claims investment through providing “wrap-around” support to decrease $$ spent – reality of reforms however is just an increase in sanctions and obligations • Not investing in decent job creation in order to really invest in people • MSD funding to include performance rewards and penalties – can have negative impacts on beneficiaries when focus is reward not their well-being

5. 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

6. Issues with changes to categories • People currently receiving Sickness Benefit will have work test exemption • however through increased work ability assessments they may still be required to work part-time – could be based on W&I doctor recommendations or private contractor evaluations • 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 Support Living Payment will be Work Ability Assessed – with aim of moving them off this

7. Extension of Work Preparation and new Work Ability Assessments • New Work Preparation requirements for: • Those who have an “additional child” while on benefit • For those receiving Supported Living Payment (if caring for sick or infirm) • New Work Ability Assessments for: • Those receiving Supported Living Payment • For those receiving Job Seeker Support (but would otherwise have been receiving sickness benefit)

8. Issues with Work Preparation and Work Ability Assessments • Work Preparation: • Can be anything W&I think is suitable I.e training, attending W&I seminars... • Could prove difficult with care responsibilities and transport costs • Doesn't reverse cuts to the Training Incentive Allowance • Is pointless for those who are receiving the Supported Living Payment (caring for sick or infirm) • Sanctions for failure to comply (will be discussed shortly) • Work Ability Assessments • Left to discretion of Work and Income - Could include decisions about what kind of benefit the person should be on, what their work capacity is, what work would be “suitable” • Could be contracted W&I “hatchet” doctors or contracted service provider • Has had horrific effects in the UK • 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

9. Extension of Pre-Benefit Activities • Pre-Benefit Activities extended to: • Those applying for the Emergency Benefit (and their partners) • Applicants for Job-Seeker Support (with work test exemption on grounds of sickness etc, and their partners) • To the partners of those applying for Supported Living Payment • Pre-Benefit Activities to be completed within 20 working days, must re-start process if do not comply

10. Issues with Extension of Pre-Benefit Activities • Makes it harder for people to get on benefit • Benefit payment loss for applicant if they or their partner do not comply • Cruel and unnecessary for those who are sick, injured or disabled and applying for Job Seeker Support (with work test exemption) • no point in making “job ready” and adding stress and pressure during difficult time • Privacy and coercion issues with requiring partner to fulfil activities

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

12. 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 “failure” to comply with 50% benefit cut • Does not remove barriers to services, such as availablity or cost • States in Cabinet Paper that goal of placing children in ECE when 3 or 4 is to make parents work ready – not wellbeing of children

13. Introduces host of benefit sanctions • Sanctions (of between 50% and 100% of benefit) for: • Turning down one “acceptable” job • Failure to comply with Social Obligations • Failing to comply with Work Ability Assessments, and Work Preparation requirements • Failure to see any contracted service provider • Failing drug test • Failing to report to Police if have Warrant to Arrest • …....

14. 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

15. 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 example: • An interview, an assessment, training • 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

16. Issues with contracted services and preferred suppliers of goods and services Issues with contracted service providers: • In the case of Work Ability Assessments – 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 and direct payment: • Not always best price • Don't always provide exact required item/service • Removes flexibility of payment/choice

17. Questions and Discussion