Overview of Social Security(Benefit Categories and Work Focus)

Amendment Bill

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

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”

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

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

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

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)

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

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

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

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

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

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

– …....

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

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

Issues with contracted services and preferred suppliers of goods and servicesIssues 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

Questions and Discussion