SOCIAL SECURITY DEPARTMENT 2013 BUSINESS PLAN
CONTENTS
Foreword…………………………………………………………. Page 2
Introduction ……………………………………………………... Page 3
Who we are………………………………………………………. Page 5
What we do………………………………………………………. Page 6
Our strategic aims……………………………………………… . Page 7
Summary of key objectives ……………………………………. Page 8
Key initiatives and targets for 2013 ………………................. Page 10
Net revenue expenditure ………………………………………… Page 18
Business Plan 2013
Social Security Department
Foreword
The high level of activity identified within the business plan for 2013 indicates the wide range of pressures currently facing the Department.
My most pressing concern continues to be the historically high rate of registered unemployment. Following transfers from other departments, all the teams involved with Back to Work activities will be working together as part of the Social Security Department in 2013. Although the level of unemployment is very high, the situation could have been far worse without the resources and initiatives that have already successfully helped many local people back into employment. The Back to Work teams will continue to work across the whole range of labour market sectors in 2013, providing training, working with employers and supporting jobseekers.
The slow moving economy has also led to a below inflation increase in the old age pension in 2012. In 2013 I will be proposing a revised formula for setting the value of the old age pension which will protect pensioners going forwards. Subject to States approval I will also provide a one-off payment to pensioners based on the increase in prices during 2012.
The long-term care benefit is due to be introduced during 2014. The Department will be working very closely with the Taxes Office and the Health and Social Services Department during 2013 to finalise details of the collection of the new long-term care charge, the setting up of a ring fenced long-term care fund and the benefit itself.
I will also be lodging a framework discrimination law early in 2013. This will define the areas to be covered by discrimination legislation and introduce specific rules in respect of race discrimination. The framework law will also allow for additional areas of discrimination (including sex, age and disability) to be covered in coming years.
I have been extremely impressed by the level of dedication and professionalism shown by the departmental staff during 2012 and I look forward to working with them again during this important year.
Senator Francis du Heaume Le Gresley
Minister for Social Security
Introduction
The strategic aim of the Social Security Department is to help people to achieve and maintain financial independence and to provide social benefits to those unable to support themselves.
This document sets out details of the ongoing business commitments of the Department as well as key initiatives that will be tackled during 2013.
The Department continues to provide support to individuals seeking employment. This aspect of departmental activity has grown significantly in the last few years and the strategic aim of getting people back to work remains the highest priority of the Council of Ministers. In 2013 the Back to Work Teams will provide both short and long term assistance to local jobseekers as well as working closely with employers, the Economic Development Department, and the Population Office.
Other changes are also planned to encourage individuals to take up work. The sanctions available under the Income Support scheme in respect of jobseekers who fail to actively seek work will be strengthened, and a revised trainee minimum wage rate will be available from April 2013.
As well as encouraging individuals into work, the Department plays a key role in protecting individuals in the workplace. Changes to health and safety legislation will be considered and framework legislation to introduce a discrimination law will be lodged for States debate.
The Department works closely with several other States departments. During 2013 the Housing Transformation Programme will continue with Social Security putting forward proposals for changes to rental support in the private sector and assisting the Housing Department with the introduction of changes to rental structures in the social sector. The Department will also work with the Health and Social Services Department on a review of primary care health services and the development of a sustainable funding stream for future health costs. In addition, the two departments continue to develop the Primary Care Governance Unit. The Control of Housing and Work Law is due to be implemented during 2013 and the Department is working with the Population Office on a single registration process to cover both Social Security and the new Control of Housing and Work requirements.
The long-term viability of the ring fenced contributory funds is monitored very carefully by the Department. During 2013, the UK Government Actuary will undertake a routine three-year review of the Social Security Fund and a five year review of the Health Insurance Fund. This will provide key information for future decisions regarding the level of contributions and the availability of benefits. The Department will also work on the setting up of a new ring fenced fund, in respect of a long-term-care benefit. Contributions will be collected from January 2014 with benefits first available later in that year.
Changes are planned to the old age pension, to provide future increases which at least match the annual increase in the retail price index for pensioners. In addition, a lump sum will be paid to pensioners to acknowledge the gap between the increase in the rate of pension and the increase in the retail price index in 2012.
The impact of the introduction of a 2% contribution rate above the standard earnings ceiling for employers and class two contributors will be reviewed and further legislation developed as required.
2013 is the last year of the three year Comprehensive Spending Review, which called for the Department to identify recurrent savings of £2.8 million in the third year. Legislation has been approved to create these savings and work will continue in 2013 to update operational areas to finalise these changes. 2013 is also the first year of the Medium Term Financial Plan, under which the States Assembly has set spending limits for a three-year period. As part of the Medium Term Financial Plan, the Department has agreed to identify additional annual savings of £3 million from 2014 onwards and these proposals will be developed and submitted to the States Assembly for approval during the year.
Following the publication in 2012 of the first detailed annual report on the Income Support scheme, it is planned to produce a comprehensive annual report covering all areas of departmental activity in 2013.
The Department administers a wide range of contributory and tax funded benefits. Claims are processed and paid throughout the year, with claimants receiving a high level of customer service including easy access to accurate information and advice. In 2013, work will be undertaken to further improve access to benefits for pensioners and a more general review of customer facing services will include a number of pilot projects.
WHO WE ARE
The Minister for Social Security is Senator Francis Le Gresley and the Assistant Minister is Deputy Susie Pinel.
Department organisation chart
At the beginning of 2013, the Department has a budgeted full-time equivalent (FTE) of 238.5 permanent posts to deliver services.
WHAT WE DO
The Department is responsible for –
- Employment support services for adults, including those with special needs, already in the workplace or seeking to enter the workplace.
- Employment and health and safety legislation that provides a legal framework within which employers and employees are protected.
- A compulsory, contributory Social Security Insurance Scheme that receives contributions from employers, employees and general tax revenues and provides contributors with benefits at times when they are unable to work and pensions when they reach a certain age.
- A compulsory, contributory Health Insurance Scheme that receives contributions from employers and employees and subsidises GP visits, pathology costs and prescriptions for Jersey residents.
- A range of non-contributory, income-related benefits including Income Support, funded from general tax revenues, which provide targeted support for lower income households.
- The development of a compulsory, contributory Long Term Care Benefit Scheme.
- The development of discrimination legislation
The next section of this document sets out the individual projects that will be developed during 2013. However, the majority of the departmental resources, in terms of both staff and budget, continue to be applied to the provision of ongoing benefits and services. For example:
- 1,000 people visit the Department each day
- Contributions are collected from 59,000 working age people and 4,000 employers every quarter
- Old age pensions are paid to 27,000 pensioners every four weeks throughout the year
- 29,000 Short-Term Incapacity Allowance claims are paid during the year
- Over 6,000 households rely on Income Support payments as part of their basic household income
- Over 500 residents of care homes receive assistance with the cost of their fees.
- In 2012, the Department helped over 1,000 people to get back to work and jobseekers attended 13,000 appointments with personal advisers.
This work will continue in 2013.
- The Back to Work teams (Work Zone, Work Wise, Advance to Work, Advance Plus, Long Term Unemployed Pilot, Employability Training, Employer Engagement) will maintain and adapt a range of support systems to help individuals return to and remain in work in line with economic conditions and the Department will play a full role in the ongoing work of the Skills Executive.
- The Health and Safety team will continue to enforce health and safety legislation and provide advice to employers and employees working in Jersey.
- The Policy team will monitor Employment Legislation and review the annual minimum wage rate.
- The Contributions and Enforcement team will assess liability and collect contributions from working age adults and local employers.
- The Pension and Benefits team will maintain and administer existing contributory Social Security and health benefits.
- The Income Support team and the Pension and Benefits team will maintain and administer Income Support and other tax funded benefits.
- The Contribution and Enforcement team will take active steps to deter, detect and prevent fraud and abuse within the benefit system.
- All our operational teams will work together to process benefit claims efficiently and effectively to ensure that the Department remains a customer focused organisation, providing sustainable, low cost services.
OUR STRATEGIC AIMS
Mission:
Helping people to achieve and maintain financial independence and providing social benefits to protect those unable to support themselves.
The Social Security Department sees its purpose as:
Offering Support, Opportunity and Service by:
- Supporting people to achieve and maintain an acceptable standard of living
- Helping employers and employees to work well together for their mutual benefit and the economy of the Island
- Planning for an ageing population
- Delivering benefits and high quality services now and in the future.
SOCIAL SECURITY
SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA AS PUBLISHED IN THE MEDIUM TERM FINANCIAL PLAN FOR 2013 TO 2015
AIM
Help people to achieve and maintain financial independence and provide social benefits to protect those unable to support themselves.
Key Objective 1: Back to work, keep people in work.
Provide support for people to gain and retain employment in order to support themselves and their families.
Success criteria:
(i) Policies, schemes and services developed and implemented to assist, in particular the long term unemployed and the young to access the workplace, through the back to work initiative.
(ii) Services are further developed and introduced to improve the employment opportunities for those with long term health conditions
(iii) The Skills Strategy is successful in providing local residents with the skills required by employers to facilitate a reduced dependency on imported labour
(iv) Income Support scheme continues to encourage and incentivise work, such that work always pays
(v) Modifications to the Trainee Minimum Wage are effective in encouraging a growth in the employment and training of young adults.
Strategic Plan References:
- Priorities: Get people into work; Promote family and community values; Develop sustainable long-term planning
Key Objective 2: Protect Islanders from the impacts of low income.
Success criteria:
(i) Income Support scheme and other tax funded benefits continue to provide targeted financial support to low income households, appropriate and flexible to their individual needs.
(ii) Income Support scheme continues to encourage and incentivise work such that work always pays.
(iii) Income Support scheme successfully adapted to provide appropriate assistance to tenants in both social and private housing sectors.
(iv) Health Service reforms include support to low income groups and those with long term conditions to enable them to access health services, including Primary Care.
Strategic Plan References:
- Priorities: Get people into work; House our community; Promote family and community values; Reform government and the public sector
Key Objective 3: Adequate income for old age, affordable for our children. Assist older Islanders to maintain standards of living by means that are financially sustainable for future generations.
Success criteria:
(i) Strategy developed ensuring the medium to long term sustainability of pension funding.
(ii) The Skills Strategy ensures that older residents have the current skills and opportunities necessary to continue to be productive members of the Island’s workforce.
(iii) Discrimination and Employment Law protects older workers from discrimination and exclusion from the workplace
(iv) Long-term care funding scheme successfully introduced.
(v) Increasing number of individuals benefiting from care packages provided in their own home.
(vi) Health Service reforms include support to low income groups and those with long term conditions to enable them to access health services, including Primary Care.
(vii) Income Support and other tax funded schemes provide targeted financial support to low income households.
Strategic Plan References:
- Priorities: Get people into work; Reform Health and Social Services; Reform government & the public sector; Promote family and community values; Develop sustainable long-term planning
Key Objective 4: Improving our Customer Service. Maintain and build upon current service standards, improving ease of use, efficiency and effectiveness.
Success criteria:
(i) Improving the information accessible in respect of benefits available, to ensure customers are better informed
(ii) Increased transparency of Social Welfare expenditure through the publication of a comprehensive annual report
(iii) Reduced levels of fraud and error within the benefit system
(iv) Increased use of electronic payments
(v) New Long term care contribution collected by Income tax Department
(vi) Services of other Departments accessible through the facilities at the Department, particularly where synergies exist.
Strategic Plan References:
- Priorities: Reform government & the public sector; Develop sustainable long-term planning
Key Objective 5: Delivering the Strategic Plan. Contribute fully to other initiatives of the Council of Ministers, where success requires our participation.
Success criteria:
(i) Development of Primary Health Care Strategy, including effective governance
(ii) Sustainable and appropriate funding of Primary Care Services
(iii) Implementation and delivery of changes to Income Support to sustain the Housing Transformation Programme
(iv) Integrated service to deliver administration of Names and Addresses Register on behalf of Population Office
(v) Delivery of integrated Social Policy Framework and joint working with Health and Social Services and the Housing Department in relation to the older adults agenda.
Strategic Plan References:
- Priorities: Get people into work; House our community; Reform Health and Social Services; Reform government & the public sector; Promote family and community values; Manage population growth/migration; Develop sustainable long-term planning
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