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 Introduction of “social obligations” Increased use of sanctions Contracting out of services Provision of goods and services by W & I “preferred

suppliers”

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

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

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”

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

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...

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

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

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

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 …....

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: 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

Issues with contracted services and preferred suppliers of goods and servicesIssues 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

Questions?