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 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

Questions and Discussion