1 / 15

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

kolton
Download Presentation

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

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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?

More Related