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A review of the working of the new LTIA scheme

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1240/5(2624)

WRITTEN QUESTION TO THE PRESIDENT OF THE EMPLOYMENT AND SOCIAL SECURITY COMMITTEE BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 13th SEPTEMBER 2005

Question

"The President has stated that it would not be appropriate to review the working of the new LTIA scheme before it has been in place for a year. Will the President confirm whether such a review will be conducted to include –

( a ) the numbers on the scheme?

( b ) the proportions on percentage awards?

( c ) the numbers in work?

( d ) the total sums paid under this allowance in comparison with the schemes replaced by LTIA? and, if so, inform members when he will bring this review to the Assembly?"

Answer

" T he review that I stated would take place after one year was an investigation into the new Incapacity Benefit scheme not just one part of it namely the Long Term Incapacity Allowance. Any review must look at numbers but as I have answered the Deputy on many occasions, comparisons over short periods must be made with caution particularly against a system that has been in place for many years.

T h e review is scheduled to begin early next year. The simple reason for this is that the new system will have

completed its first full year at the end of September 2005. Some of the data necessary for the review will be extracted from contribution data for the 3rd Quarter of 2005 which will not be available until January 2006, as contributions are collected in arrears. I would hope that the review will be available within three months of completing the data extraction.

A  s the Deputy is aware, the new Incapacity System is about recognising that illness is not a static situation

and that the benefit system should not be a barrier to returning to work. So the objective is to review the new Incapacity System in order to establish whether it meets with the policy intent as agreed by the States, namely –

( i)  to provide immediate support for people with short-term, limiting illness; ( ii ) to enable people with long-term health conditions to return to work;

( ii i) to be less intrusive, particularly in cases of very severe illness where the person is unlikely to return to

work; and,

( iv )  to prevent abuse of the system.

T  he review will gather evidence on numbers and types of award/s and include the associated guidelines,

procedures, processes, support mechanisms and identify any areas where the role of the key stakeholders and communications can be improved.

I t should also take account of other countries recent relevant experience and research in this field. G i ven the timescale, it will be presented to the new Minister and not the Committee.

If any changes are recommended, I have no doubt that the new Minister will want to consider the

recommendations and report to the States in the normal way."