Changes to the long term incapacity allowance

1240/5(2353)

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 15th MARCH 2005

Question

Would the President inform members –

1. o f the percentageofnew recipients who, in the 4th quarter of 2004, received100% benefit underthelong- term incapacity allowance(LTIA)?
2. o f comparative figures onLTIAclaimants in the 4th quartersof2004and 2003, showingthe difference in numbersofclaimants, the percentagesoftheirawards, and the total sums paid outinthese periods?
3. w h at estimatedsaving,if any, will beachievedthroughLTIAaccumulatedin the first year of its operation as more claimantstransfer from short-term to long-term incapacity allowanceduring this period? and,
4. w h ether the recent findings of the report from Professor Walker ofNottingham University on poverty in the Island includedevidenceof these most recent data onchangestoLTIA, and, if not, what steps is the Committee goingto take to updateourunderstandingofthereal levels of poverty in Jersey following these recent changes?

Answer

1. In the 4thQuarterof2004,125 claims to LTIA weremadeofwhich25,or20%, were assessed at 100%, 63 (52%)wereassessed at between 50 and 99%,and35(28%) were assessed at below 50%.
2. T h isis impossible to answerasLTIAwas introduced on 1stOctober 2004, and didnot exist in the 4th quarter of2003.
3. N o savings have been estimated as none have been identified bytheCommittee.As the new benefits are completely gender neutral, and with the removalof the married woman's option not to pay contributions, more claims will result from married women than in the past.Unlike the old sickness and invalidity benefits, LTIA is not disallowed if a person is capable of any work and so will be available toclaimants whomay have been previously disallowed paymentsof the old benefits.
4. P r ofessor Walker presented thecomparative study toStates' Memberson 3rd March2005, and those present would have heard that the comparisonwasbasednecessarilyon 2001 figures and, therefore, recent changescouldnotbeincluded. Unfortunately, Deputy Southern was not present at the meeting so could not have askedquestionsabout levels of poverty to an expertonpovertywho advises Governments on both sidesof the Atlantic. Nevertheless,the comparative study did show that the comparative spendon sickness and health washigher than theEuropeanaveragewithout taking into accountemployers' sick pay in Jersey for which figures werenot available. TheCommitteeis always ready to help members understanding of complex issuesand would behappyto help Deputy Southern orany other member if there are matters that need tobe further clarified. I am sure that Professor Walker wouldbehappy to help in this regard if thereare specific questions tobeansweredon the Nottingham University report. The Committee is alsocommitted to keeping members informed about the eradication of financial and social exclusion and will do so through the developmentof the incomesupportsystem and reviewsoftheSocial Security system.At this stage, the Committee has noted that the incidenceofpoverty in Jersey isabout the same as Europebut the levelofpoverty is not as deep as Europe even though the comparativespend is relatively low.