Income Support and Transition Process - Progress Report
Statement made by the Minister for Social Security on 3rd June 2008 I am today making available to Members a progress report on the first months of Income Support and also announcing some enhancements to the Income Support System and the extension of the protected benefit payments.
As result of careful planning and a highly committed staff team, Income Support was introduced in January 2008 with the minimum of disruption to benefit claimants. Over 8,000 households received their first payment on Monday 28 January with subsequent payments being spread out over the payment cycle.
The Parishes continue to provide a valuable service to their parishioners by offering advice and cash payments to those people who prefer to have local access to their Income Support.
On 1 May, appropriate Income Support components were increased to ensure that low income families were not disadvantaged by the introduction of GST on 6 May. Income Support payments increased from £120,000 per day to approximately £125,000 a day as a result. All claimants received their additional benefits before the introduction of GST.
As well as regular weekly payments, in the first 4 months the Department has dealt with
Over 2,200 Winter Fuel Allowance payments per month
Income Support has introduced a comprehensive appeals process for claimants, to ensure that anyone dissatisfied with a decision can appeal to an independent tribunal.
The new jobseeking service was introduced a few weeks ago. So far 60 people have been asked to attend an interview, 36 have signed a Jobseekers Agreement and of those eight have already found work
A review of the first three months of operation has included:
- Collating evidence of issues arising from the introduction of Income Support from staff and claimants.
- I have lead feedback sessions for representatives of local voluntary organisations and other stakeholders.
- I attended a meeting organised by the Senior Citizens Association to discuss Income Support
- The Social Security Advisory Council has provided feedback to the Department.
- The department has extracted data from the Social Security business system to analyse the detailed circumstances of benefit claimants, and to provide forecasts for ongoing costs both for benefits and the transition protected payments. This analysis required reviewing approximately half a million separate pieces of information and assessing the impact of more than 100 variables within the system.
Overall, the main message from these enquiries has been that Income Support is working well, but, as acknowledged at the outset, there are a small number of adjustments that could be made in certain areas.
The main concern regarding the delivery of Income Support has been that it is very different from the previous benefits and many claimants do not fully understand the new system and this has led to some worry. The Department will be devoting additional resources to communication over the next few months, working directly with claimants as well as stakeholder groups, and other States departments to ensure that claimants understand the new system. I will be asking the Social Security Advisory Council to assist us in this work.
As anticipated, following the implementation of Income Support, the information that we now have enables us to make adjustments to ensure that benefits are targeted to their maximum effect. The Department will continue to monitor costs and identify potential improvements to the scheme on an ongoing basis.
The detailed report that I am circulating today includes statistics on the impact of Income Support on different types of households Over 3,000 households received additional benefit from the beginning of Income Support. These households are among the poorest families in our society and the introduction of a consistent financial safety net is something that we should rightly be proud of.
In addition, over 700 individuals receive benefits whilst in residential care. Benefits for these people are being maintained.
I would like to remind Members that there is a major piece of work being undertaken at the present time with regard to residential care for the elderly. This work should be concluded within the next 9 months, and in the mean time, the introduction of Income Support has continued the accessibility and level of financial support available under the old systems.
Those households that do not see an immediate benefit from the introduction of Income Support have been receiving protected payments to ensure that their previous level of benefit has been maintained and partially reduced over a number of years only once adequate notice has been given. The funding for these protected payments is additional to the main Income Support budget.
In September 2007, a paper describing the transition process and the calculation of protected payments was circulated to all Members. At that time, it was explained that it was impossible to provide accurate costings of the transition process until the number and make up of claimants eligible for transition was settled, shortly after the introduction of Income Support.
Accurate costings for transition have now been completed. Together with my Department, my Assistant Minister and I have considered these costings and I am announcing today that, within the existing budget provided by the Treasury and Resources Minister, we will extend the 100% protection for all claimants from this October until 27 January 2009, which will be a full year since the introduction of Income Support.
During August, the Department will be writing to households to give them guidance on the partial reduction in protected payment that they can expect to receive from 28 January 2009.
I confirm that 28 January 2009 will be the first time any protected payments will be partially reduced.
Of course if at any time, a claimant’s circumstances change, a new assessment will be undertaken. In particular, should the financial circumstances of the household worsen, the household will be eligible to receive Income Support as appropriate to their new circumstances.
There were three benefits; Attendance Allowance, Child Disablement Allowance and Adult Disablement Allowance that were previously available to households with an income of up to £55,498 per annum, and, in the case of a child receiving Attendance Allowance, to a child with an income of up to £55,498 per annum, regardless of their parents’ income.
The majority of families previously receiving these disability benefits are now receiving an enhanced benefit from the introduction of Income Support.
There are also families with their own incomes which would not normally be supported through the Income Support system who have been accustomed to receiving a benefit in respect of their disability. Whilst these families would not be considered to be in need of financial support in Income Support terms, some of them rely on the value of the disability benefit to assist with the cost of existing financial commitments. Households that include someone with a disability have become accustomed to the level of benefit under the previous system and may find it more difficult than other households to adapt to new benefits.
I believe that we should continue to support and protect people with disabilities for a longer period.
Due to the gradual build up of new Income Support claims during 2008, it is possible to transfer additional funds to the funding of protected payments to allow households previously receiving Attendance Allowance, Adult Disability Allowance or Child Disability Allowance, to continue to receive full protection.
I am announcing today that this protection will be for a further two years up until October 2010. Only then will the first partial reduction in protected benefit occur.
Whilst I recognise that the States have, on several occasions, debated and approved the tightening up on the availability of benefits to those with higher incomes, my Assistant Minister and I have also listened to the views of those who represent children with severe disabilities and their families. I believe that a special case can be made to provide financial assistance to families that care for a child with a severe disability.
I will be lodging a proposition to amend the Income Support regulations, to enable children with severe disabilities, in families that would not otherwise qualify for Income Support, to access the high level personal-care component.
I also want to take this opportunity to remind families who care for people with disabilities that the Invalid Care Allowance still exists and that we also have a new carer’s allowance that has been introduced within Income Support. The take-up of this allowance is quite low at present and we will be writing to carers and the Jersey Carers Association to ensure that everyone entitled to the new benefit is receiving it.
I recognise that Members will want to be confident that people with disabilities are supported appropriately and I would like to reassure the public that this package of measures has enhanced for many the support that they receive and for others maintained the support they receive.
I am also announcing today steps to provide automatic qualification to the first level of personal care component for those with 100% Long Term Incapacity Allowance awards.
If someone has an accident or serious chronic illness during their working life, they are normally supported financially through the Long Term Incapacity Allowance. This benefit is paid on a percentage scale depending on the level of incapacity. If the person had very high personal care needs they would also have qualified for Attendance Allowance. However, many people with moderate personal care needs received no additional help with the cost of their disability. Those in receipt of LTIA could not access Adult Disablement Allowance. Under Income Support, two additional levels of support, accessible to those on LTIA, have been introduced.
There will be a significant proportion of individuals with 100% LTIA awards who are already eligible for one of these additional personal care components. As this is a new benefit, the take-up is quite low at present and we will be lodging regulations to provide an automatic entitlement to the personal care component, level 1, without the need for further application or assessment. Of course if someone considered that they should have a higher care component they could make an application for a higher rate component
With regard to the treatment of lone parents who have a child remaining in education from the age of 16 – 18.
The current definition of lone parent in the Income Support law leads to a reduction in the level of benefit when the child of a lone parent finishes compulsory schooling and remains in education. I have today lodged a proposition that addresses this issue and will create a financial incentive for the child to remain in education.
Whilst this statement focuses on enhancements to the scheme and extended protected benefits it should not be forgotten that there are a significant number of the poorest households within our community who have received an immediate benefit increase since last January.
In conclusion I would like to thank all those who have fed back information and for the support they have given to enable my Assistant Minister and I to make these announcements today.
In Brief they are;
Extended protected benefits until 27th January 2009 for everyone.
Extended protected benefits until October 2010 for people who previously received Attendance Allowance, Adult Disablement Allowance, or Child Disablement Allowance.
A new entitlement for households with children with severe disabilities to claim the high level personal care component without regard to the parents’ income.
A new automatic entitlement for LTIA claimants with 100% awards to the 1st level personal care component.
A new incentive for children of lone parents to remain in further education.
The report which will be placed in Members’ pigeon holes later today sets out a detailed analysis of Income Support households, and their financial position in October this year.
I do hope these new initiatives find favour with Members.
