Report of the Working Group on the Review of the Supplementary Welfare Allowance Scheme

Transcription

1 Department of Social and Family Affairs Report of the Working Group on the Review of the Supplementary Welfare Allowance Scheme Phase II November 2006 REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 1

2 TABLE OF CONTENTS Acknowledgements 7 Glossary of Abbreviations 8 Executive Summary 11 Chapter 1: Introduction Introduction to Supplementary Welfare Allowance Background to the Government s Expenditure Review Programme Structure of the Review Programme Terms of Reference Background to the SWA Review Phase I of the Review Phase II of the Review 26 Chapter 2: Objectives of the SWA Scheme Introduction History of the Scheme Original Intention Objectives of the SWA Scheme Compatibility of the Objectives Conclusion 38 Chapter 3: Administration Introduction Administration Costs Administration of the Means Test Appeals and Outcomes of Appeals Control of the Supplementary Welfare Allowance Scheme 46 Chapter 4: Effectiveness of Basic Supplementary 49 Welfare Allowance Payments 4.1 Introduction Legislation Objective of Basic Supplementary Welfare Allowance Scheme Profile Recipient Numbers Spatial Distribution Family Composition 57 2 Department of Social and Family Affairs

3 4.4.4 Age Profile Claim Duration Claims with Means Expenditure International Context Effectiveness Indicators Identification of the Target Group for the Scheme The Level of Take-up of the Scheme by Eligible Claimants Adequacy of Payments Considering the Needs of the Person The Continued Appropriateness of Eligibility Criteria Overall Conclusion Effectiveness of Basic Supplementary Welfare Allowance Payments 78 Chapter 5: Effectiveness of Rent and Mortgage 79 Interest Supplements 5.1 Introduction Legislation Rent Supplement Objective of Rent Supplement Government Decision Scheme Profile Trend in Recipient Numbers Primary Qualifying Payment Family Composition Nationality of Rent Recipients Take-up by Short-Term Recipients Claim Turnover Rent Supplement Expenditure Mortgage Interest Supplement Objective of Mortgage Interest Supplement Scheme Profile Trend in Recipient Numbers Mortgage Interest Supplement Expenditure International Perspective Effectiveness Indicators Target Group for the Scheme Take-up of the Scheme Eligibility Criteria Adequacy of the Payment Duration of the Payment Benefit and Privilege Housing Need Access and Standards Awareness of Scheme Data Requirements Overall Conclusions Effectiveness of Rent and Mortgage Interest 113 Supplements REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 3

4 Chapter 6: Effectiveness of Exceptional/Urgent Needs 115 Payments and Other Supplements 6.1 Introduction Legislation Relevant Legislation/Guidelines for ENPs Relevant Legislation/Guidelines for UNPs Relevant Legislation/Guidelines for Other Supplements Diet Supplement International Context Scheme Profile Exceptional/Urgent Needs Payments Scheme Profile Expenditure National Average Levels of Payment for ENPs/UNPs Average Expenditure per ENP/UNP Payment Type per Health Board, Expenditure and Payments per Population Recipient Numbers Profile of ENP Recipients Factors Influencing Demand for ENPs Other Supplements Scheme Profile Expenditure Recipient Numbers Number of Payments Average Level of Payment Other Supplements Profile Statistical Summary Objectives of ENPs/UNPs and Other Supplements Effectiveness Indicators Target Group Level of Take-up of ENPs, UNPs and Other Supplements Adequacy of Payments Eligibility Criteria Scope of the existing ENP/UNP/Other Supplement Schemes Clarification of Responsibilities Conclusions ENPs/UNPs/Other Supplements ENPs Other Supplements UNPs Other Conlusions Overall Conclusions Effectiveness of ENPs/UNPs and Other Supplements 148 Chapter 7: Means Test for SWA Introduction Legislation Standardisation of Means Assessments Means Assessment Assessment of Capital Position of Principal Residence (Family Home) Impact of Mortgage Interest Payments Department of Social and Family Affairs

5 7.8 Other Assets Disposal of Assets Assessment of Income Household Income Assessment of Spouse Income Compensation Payments Other Disregarded Items Means Derived from Self-Employment Overall Conclusions Means Test 161 Chapter 8: Efficiency of the SWA Scheme Introduction Efficiency of Basic Supplementary Welfare Allowance Payments Objectives of Basic Supplementary Welfare Allowance Payments Efficiency Indicators Duplication in the Overall Administrative Arrangements Delivery of Service Payments Being Made in a Timely Manner Control of the Scheme Conclusions Efficiency of Basic Supplementary Welfare Allowance Payments Efficiency of Rent and Mortgage Interest Supplements Objective of Rent and Mortgage Interest Supplements Efficiency Indicators Scheme Administration Delivery of Service Payments Being Made in a Timely Manner Liaison with Housing Authorities Customer Movement Control Programme Costs Rent Supplement Programme Costs Mortgage Interest Supplement Allocation of Accommodation Long-Term Efficiency of a Rental Approach Conclusions Efficiency of Rent and Mortgage Interest Supplements Efficiency of ENPs/UNPs/Other Supplements Objectives of ENPs/UNPs and Other Supplements Efficiency Indicators Duplication in Administrative Arrangements Control of the Scheme Delivery of Service Conclusions Efficiency of ENPs/UNPs/Other Supplements 190 Chapter 9: Validity of Objectives, Policy and 191 Organisational Approaches 9.1 Introduction Validity of Objectives Basic Supplementary Welfare Allowance 193 REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 5

6 9.3.1 Current Position Progression from Income Need Basic Supplementary Welfare Allowance No-blame Income Support Means Test The Place of SWA within Social Assistance Policy and Organisational Approaches Basic Supplementary Welfare Allowance Payments Interim Basic Supplementary Welfare Allowance Payments Non-Interim Basic Payments: Sick no benefit Non-Interim Basic Payments: Asylum Seekers Non-Interim Basic Payments: Homeless Persons Different Means Rules Exclusions from SWA Eligibility Rent and Mortgage Interest Supplements Housing Context Housing Supply Projected Housing Demand Housing Policy Impact on Rent Supplementation Policy and Organisational Approaches Recommendations ENPs, UNPs, Other Supplements First Principles Policy and Organisational Approaches Recommendations Summary of Recommendations 207 Chapter 10: Performance Indicators 209 Appendices Appendix 1 Additional Statistics 213 Appendix 2 Extracts from Social Welfare Consolidation Act Appendix 3 Appeals Statistics 248 Appendix 4 Control Procedures 253 Appendix 5 Social Housing Discussion Document 254 Appendix 6 Qualifying Conditions for Rent and Mortgage Interest Supplement 256 Appendix 7 Main Social and Affordable Housing Schemes, Appendix 8 Welfare to Work Incentives 261 Appendix 9 Impact of Commencing Employment 263 Appendix 10 Comparison of Estimated Disposable Income and Rental Contribution under Rent Supplementation and Differential Rents 275 Appendix 11 Maximum Rent Limits 277 Appendix 12 Spatial Distribution of the Number of ENP/UNP Payments 279 Appendix 13 Poverty Impact Assessment 301 Appendix 14 Submissions Received 308 Appendix 15 References Department of Social and Family Affairs

7 ACKNOWLEDGEMENTS The Working Group for Phase II of the Review of the Supplementary Welfare Allowance Scheme would like to thank the following for their assistance with this Review: The Regional Directors Office, Department of Social & Family Affairs Office for Social Inclusion, Department of Social & Family Affairs Colm McDermott, Planning Section, Department of Social & Family Affairs Dermot Coates, Centre for Housing Research Dr Muireann Cullen, Irish Nutrition & Dietetic Institute The Community Welfare Service of the Health Service Executive The Appeals Office of the Health Service Executive All former members of the Working Group and those who participated on the various sub-groups All those who made submissions to the Working Group (see Appendix 14) REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 7

8 GLOSSARY OF ABBREVIATIONS ADA AP BO BTEA BTWA C&AG CAS CB CDA CDI CE CEO CIC CPA CSO CWO CWS D/EHLG D/Finance DA DB DOHC DP DPA DSFA EFT ENPs ERHA ESRI FIS GMS GP HSE HB HEO HRC Adult Dependent Allowance Assistant Principal Branch Office (Department of Social & Family Affairs) Back to Education Allowance Back to Work Allowance Comptroller and Auditor General Capital Assistance Scheme Child Benefit Child Dependent Allowance Child Dependant Increase Community Employment Chief Executive Officer Citizens Information Centre Combat Poverty Agency Central Statistics Office Community Welfare Officer Community Welfare Service Department of Environment, Heritage and Local Government Department of Finance Disability Allowance Disability Benefit Department of Health and Children Direct Provision Direct Provision Allowance Department of Social and Family Affairs Electronic Funds Transfer Exceptional Needs Payments Eastern Regional Health Authority Economic and Social Research Institute Family Income Supplement General Medical Service General Practitioner Health Service Executive Health Board Higher Executive Officer Habitual Residency Condition 8 Department of Social and Family Affairs

9 ICTU IDC INDI IR ISTS LA LAMO LTUA MABs MHB MIS MWHB NAPincl NAPS NEHB NESC NESF NWHB OAP OFP OPW PIs PM PPSN PSO PDT QAA RS RAS SCWO SEHB SHB SI SMI SNB STIS SW SWA SWAO SWHB SWLO Irish Congress of Trade Unions Inter Departmental Committee Irish Nutrition and Dietetic Institute Industrial Relations Integrated Short Term System Local Authority Local Authority Mortgage Long Term Unemployment Assistance Money Advice and Budgeting Service Midland Health Board Mortgage Interest Supplement Mid Western Health Board National Action Plan against Poverty and Social Exclusion National Anti Poverty Strategy North Eastern Health Board National Economic and Social Council National Economic and Social Forum North Western Health Board Old Age Pension One-Parent Family Payment Office of Public Works Performance Indicators Programme Manager Personal Public Service Number Pension Services Office Post Draft Transfer Qualified Adult Allowance Rent Supplement Rental Accommodation Scheme Superintendent Community Welfare Officer South Eastern Health Board Southern Health Board Statutory Instrument Strategic Management Initiative Sick No Benefit Category of basic supplementary welfare allowance Short Term Information System (DSFA Statistical Information System) Social Welfare Supplementary Welfare Allowance Social Welfare Appeals Office South Western Health Board Local Office (Department of Social and Family Affairs) REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 9

10 TLAI UA UB UDC UNP VFM VHI VTOS WG WHB Third Level Allowance Unemployment Assistance Unemployment Benefit Urban District Council Urgent Needs Payment Value For Money Voluntary Health Insurance Vocational Training Opportunities Scheme Working Group Western Health Board 10 Department of Social and Family Affairs

11 EXECUTIVE SUMMARY SWA Scheme The supplementary welfare allowance (SWA) scheme is administered by the Health Service Executive, under the general direction and control of the Minister for Social and Family Affairs. The Department of Social and Family Affairs ( the Department ) has no function in deciding entitlement in individual cases. The scheme is the safety net within the overall social welfare system in that it can, subject to conditions, provide assistance to persons in the State whose means are insufficient to meet their needs and/or those of their dependents. The scheme is made up of a number of component parts: Basic Weekly Payments, Rent & Mortgage Interest Supplements, Diet Supplements, Miscellaneous Other Supplements, Exceptional Needs Payments, and Urgent Needs Payments. Total expenditure on the supplementary welfare allowance scheme in 2005 was 709m, including administration costs of 47m 1. Background to the Review In 2000, given the changing nature of the scheme, the rapidly increasing levels of expenditure and the range of changes then being proposed in relation to individual aspects of the scheme it was decided that a fundamental appraisal of the SWA scheme, aimed primarily at improving customer service and administrative efficiency was required. This appraisal was carried out under the Department s series of Programme Evaluation reviews, with all aspects of the scheme examined. In view of the extensive terms of reference for the review, the complex nature of the scheme and its numerous component parts, each with its own individual purpose, it was decided to carry out the review in two phases. The report of Phase I of the Review was published in December 2004 and: outlined the background to the scheme, gave an overview of the current scheme, identified the objectives of the scheme, outlined the trends in recipient numbers and expenditure, considered the relevance of the scheme objectives in the context of the various Governmental and Departmental strategies, and highlighted the issues identified for further consideration by the Group in relation to each component part of the scheme. 1 All expenditure figures for 2005 contained in the report are provisional figures. REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 11

12 EXECUTIVE SUMMARY Phase II The second phase of the Review, as contained in this report, commenced in February 2005 and is an indepth examination which: considers the issues raised in Phase I of the report, examines the efficiency of the scheme, examines the effectiveness of the scheme, examines the validity of the objectives, and in light of the above, as appropriate, makes a series of recommendations in relation to the future of the scheme. Chapter 1: Introduction This chapter provides background information on the Expenditure Review Process in general and in the Department of Social and Family Affairs. It then outlines the process followed in the Review of the Supplementary Welfare Allowance Scheme and provides a brief summary of the report of Phase I of the Review. Chapter 2: Objectives of the SWA Scheme This chapter updates Chapter 3 of the Phase I report, in which the objectives of the SWA scheme were identified as follows: To provide a standard minimum income, in an immediate and flexible manner, to those whose means are insufficient to meet their basic needs. To provide income support in the form of a weekly/monthly supplement to those with additional specific needs, identified either in association with other personal and social services or on an individual basis, that cannot be met from their standard minimum income. To financially support, by way of a single payment, any individuals who have once-off exceptional/urgent needs, identified either in association with other personal and social services or on an individual basis, that cannot be met from their own standard minimum income. These objectives were considered in the context of Departmental and Governmental policies and were found to be compatible with and supporting of those policies. Chapter 3: Administration This chapter considers the overall administration costs of the SWA scheme, the administration of the means test and the appeals process. The Working Group found that, overall, while the administration costs for the SWA scheme are higher than for other schemes, there are documented reasons why this is the case. However, the Group concluded that alternate delivery mechanisms (discussed in later chapters) may provide improved value for money. 12 Department of Social and Family Affairs

13 EXECUTIVE SUMMARY Regarding the administration of the means test, the Working Group concluded that there are duplications of means testing which should be addressed as a matter of priority. The Working Group recommends, therefore, that one means test only be conducted. At that means test, all the blocks of means information that will be required for the various social welfare schemes should be collected. Ultimately, this would be best operated using a shared means database rather than paper files. In the context of a single means test, a unified means tested assistance payment would further eliminate duplications in the system. This concept is examined in detail in Chapter 4. The Group concluded that a right of appeal in the HSE was an essential part of the decision process and that it was immaterial whether this review was carried out by a HSE appeals officer or by another deciding officer in the HSE. Accordingly, the Group concluded that this second right of appeal did not represent a duplication or inefficiency in the current process. The Working Group recommends that the HSE and the Department should agree a revised template for recording appeals statistics. It further recommends that the HSE Appeals Officers and Superintendent Community Welfare Officers should meet on a regular basis to discuss policy issues arising from current determinations; the Department should be included in these discussions as required. The Working Group recommends that the procedures for the determination of decisions and appeals under the supplementary welfare allowance scheme, as set out in Regulations S.I No. 107 of 1998, should be adhered to. Chapter 4: Effectiveness of Basic Supplementary Welfare Allowance Payments Basic supplementary welfare allowance payments are currently divided into two categories those to persons who have income maintenance needs that cannot be met from mainline social welfare payments (non-interim basic payments) and those to persons awaiting a social welfare payment (interim basic payments). Chapter 4 details the legislation governing basic (interim and non-interim) supplementary welfare allowance payments and provides a detailed profile of basic supplementary welfare allowance expenditure and recipients. It then examines in detail the effectiveness of the various types of basic supplementary welfare allowance payments according to certain criteria. The Chapter concludes that the basic supplementary welfare allowance has gone beyond its safety net role and that the scheme has become a mainline support provider with 54,000 individuals benefiting under the scheme. It recommends that the Department should meet the immediate and longer-term income support needs of those groups for which it has primary responsibility; that other Departments who have primary responsibility for other groups should make the necessary arrangements to meet the full needs of these individuals; and that the residual SWA basic payment safety net income support payments should be met from within the welfare system itself. The Working Group was satisfied that the tailoring of additional payments and entitlements to services to meet individuals specific needs would be a more effective way of helping individuals to realise their potential: REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 13

14 EXECUTIVE SUMMARY Paradoxically, treating people of working age in receipt of social welfare more equally will involve the personal tailoring of additional payments and entitlements to services that address the specific barriers preventing people from realising their potential. Personally tailored packages of additional payments and service entitlements would reflect the fact that undoubted differences in people s needs arise, not primarily from the nature of their qualifying contingency as the current welfare code implies, but from more individual sets of circumstances which require, and would be more effectively addressed by, the tailored provision of services and income support. For example, where an individual of working age is prevented from realising their potential for participation by costs associated with responsibility for children, a health condition, disability, private rental accommodation or whatever, these should be treated by the social welfare code in a way that is equitable to people with similar net incomes. The support available should not be conditional on employment status or sharply differentiated by contingencies. 2 Chapter 5: Effectiveness of Rent & Mortgage Interest Supplements Rent supplement is a short-term income support to assist with reasonable accommodation costs of eligible persons living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. Mortgage interest supplement provides short-term income support to eligible persons who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. Chapter 5 details the legislation governing rent & mortgage interest supplements and provides a profile of expenditure and recipients (further statistics are available in the Appendix 1). The Chapter then examines in detail the effectiveness of these supplements according to certain criteria. In particular, the role of rent & mortgage interest supplements in supporting a return to work is discussed. An international comparison of housing assistance systems in a range of countries is also included. The Working Group concluded that the rent supplement scheme has not alone provided effective support to its target group but it has also provided support to those with a long-term housing need. While the new Rental Accommodation Scheme (RAS) is designed to address long-term housing need defined at present for the purpose of commencing the RAS as being in receipt of rent supplement for more than 18 months further consideration needs to be given to those in receipt of short-term rent supplement to ensure that it is properly focused and that the RAS captures all of those with a long-term housing need at the earliest possible juncture in order to facilitate accommodation planning. The Group noted that NESC had welcomed the introduction of the RAS and that the CORI Justice Commission had proposed in its Socio Economic Review for 2005 Policy Proposals on Housing and Accommodation : Ensure that nobody remains dependent on rent supplement for more than 18 months. To this end ensure prompt delivery and adequate resourcing of the new Rental Accommodation Scheme (RAS). The Working Group also made a number of recommendations in relation to the effectiveness of the scheme, some of which are as follows: 2 The Developmental Welfare State, Report No. 113, NESC 2005, p Department of Social and Family Affairs

15 EXECUTIVE SUMMARY The scheme should not be extended to low paid full-time employees, The mechanism for reviewing rent limits was adequate, The 18-month period for tenants transferring to RAS should be reduced following the implementation of the RAS, The level of analysis of internal data could be improved if data on the following were available; application of disregards, level of deductions, household income, family composition and accommodation occupied by family size. Chapter 6: Effectiveness of Exceptional Needs Payments/Urgent Needs Payments/Other Supplements An exceptional needs payment is a payment which may be made under the SWA scheme to help meet essential, once-off, exceptional expenditure which a person could not be reasonably expected to meet out of their weekly income. Assistance may also be provided in cases of urgency (for example in the aftermath of a fire or flood) to persons who would not normally qualify under the SWA scheme by way of an urgent needs payment. The SWA scheme also provides for weekly or monthly supplements to persons whose income/means are insufficient to meet certain ongoing needs. Chapter 6 outlines the legislation governing ENPs, UNPs and other supplements and provides a profile of expenditure and recipients. It then considers the objectives of these elements of the scheme and examines their effectiveness, using certain indicators of effectiveness. The Working Group made a number of conclusions and recommendations in relation to the scheme, some of which were as follows: The Working Group was satisfied that the target group for ENPs, UNPs and other supplements were any persons in the State whose means were insufficient to meet their needs. The Working Group also concluded that, in order to achieve long-term effective solutions for the target group, there needs to be a more focused approach for particular vulnerable groups. The Working Group considered that an integrated response to income support, coupled with the existing links to the various community, voluntary and State organisations who currently assist vulnerable groups, would address any concerns over the level of take up associated with the ENP/UNP and other supplement schemes and could improve the effectiveness of the schemes. The Group considered that it was vital in any such income support system that vulnerable individuals would have access to individual case workers who would work with the person and provide the multi-agency response that is often required. The Working Group identified a number of variations in the value of ENP payments that could not be explained and concluded that it was an indicator of ineffectiveness. Chapter 7: Means Test for SWA Chapter 7 documents the provisions governing the assessment of means for the purposes of the supplementary welfare allowance scheme. It examines the main features of these provisions and assesses whether they are still valid or should be amended. Variations between the means test for SWA and other schemes are also highlighted and recommendations for changes made. REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 15

16 EXECUTIVE SUMMARY Chapter 8: Efficiency of the SWA Scheme Chapter 8 examines the efficiency of the individual elements of the SWA scheme, using various indicators of efficiency and concludes that while some types of payments are made in an efficient manner, for others there are elements of duplication in administration arrangements, or other inefficiencies. Chapter 9: Validity of Objectives, Policy and Organisational Approaches This Chapter of the report examines the objectives of the SWA scheme and considers the validity of these objectives having regard to the efficiency and effectiveness of the scheme. It concludes that the SWA scheme objectives remain valid and the scheme warrants the allocation of resources on a current and ongoing basis. The Chapter also examines the individual scheme components, considers these in a current policy context and, having considered alternative delivery mechanisms, makes recommendations for the future delivery of the scheme. The Working Group concluded that, ultimately, social assistance schemes which are already payable at the same weekly rates should be integrated into a unified system of income support. The Group considered that for this to operate successfully across the range of individual situations presenting for support that active and frequent case-management of individual applications is vital. For example, in certain cases activation to work or further education would be appropriate, while in other situations referral to the personal care services of the HSE would be necessary (e.g. for drugs rehabilitation, or social worker intervention in family situations). Income support would continue to be paid, subject to the means test, with case management interviews with the applicants as often as required in order to secure re-engagement with the labour market. The Group concluded that on the basis of the full and successful implementation of the rental assistance arrangement decided upon by Government in July 2004 and the rent supplement scheme returning to its original intentions of a short-term income support scheme that these short-term income support payments would become the responsibility of the Department and ultimately be integrated into the unified income support payment. Finally, the Group concluded that a rationalised ENP/UNP/other supplement response would play a vital role in this income support system. It considered the key outcome in these situations was that the individual would receive a tailored multi-agency solution to address their particular needs. The Working Group considered that the Community Welfare Service was best placed to deliver this service. The vital factor was that the scheme was administered by caseworkers who would interact with the various agencies that deal with the individual s basic needs. 16 Department of Social and Family Affairs

17 EXECUTIVE SUMMARY Chapter 10: Performance Indicators This chapter details performance indicators which can be used in future to assess the extent to which the SWA scheme has met its objectives in an efficient and effective manner, having regard to the recommended changes to the SWA scheme contained in this report. Table of Recommendations The Working Group have set out below a list of the primary recommendations contained in this report and referenced the sections in the report where the detailed discussion is contained. REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 17

18 EXECUTIVE SUMMARY Reference High-Level Recommendations Responsibility The Working Group recommends that ultimately, social assistance DSFA schemes which are already payable at the same weekly rates should be integrated into a unified system of income support. The Group recommends that this approach only be adopted when the necessary administrative re-organisation has been achieved (i.e., 3-5 years), see chapter 4.6 and 4.7 for details. In the meantime, the Group recommends that the status quo (i.e. SWA and other scheme rates aligned at an equal level) should remain in place for future Budget rates increases The Working Group recommends that the rent and mortgage interest DSFA & HSE supplement schemes administration and management be relocated to the Department of Social and Family Affairs, but with the improvements and changes recommended by this review (see Chapter 5.11 for details). It further recommends that: the Department of Social and Family Affairs vigorously support and pursue the implementation of the rental accommodation scheme. arrangements be made for the early referral to Local Authorities of tenants with apparent long-term housing need for a full housing needs assessment. The early referral will also address some of the disincentive effects of the present arrangements. a survey of customers is carried out to determine the extent of longterm housing need and reaffirm criteria for short-term income support need. The work involved in the implementation of the RAS will inform this review. as the RAS progresses to full implementation, the period for which rent supplement is paid should be time bound. payment to long-term recipients of mortgage interest supplement should be reviewed with a view to putting procedures in place to addressing their long-term need. This may take the form of a financial interest in the customer s property. programme costs need further analysis to determine the extent to which each cost factor is contributing to the increase in expenditure. the level of data analysis could be improved if data on the following items were available; application of disregards, level of deductions, household income, family composition and accommodation occupied by family size. These schemes could then be integrated as part of a single income support system. Until this recommendation is implemented the Working Group recommends that the rent and mortgage interest supplement schemes continue to be administered by the Community Welfare Service on behalf of the Department. 18 Department of Social and Family Affairs

19 EXECUTIVE SUMMARY Reference High-Level Recommendations Responsibility 9.5 On the premise that; DSFA and HSE basic supplementary welfare allowance payments will become part as appropriate of the Department of Social and Family Affairs remit (see Chapter 4.6 and 4.7), all matters relating to long-term housing needs will be dealt with by the relevant Local Authority (see Chapter 5.11), those in need of short-term income support in relation to their housing needs will be catered for by the Department of Social and Family Affairs as part of a unified system of income support (see Chapter 5.11), exceptional/urgent needs payments will be rationalised as recommended in Chapter 6.14, and the policy and liaison arrangements also outlined in Chapter 6.14 will be implemented. The Working Group recommends that the remaining elements of the SWA scheme become part of a system that would deliver immediate, flexible solutions to individuals with needs. These solutions would be tailored to meet the individual needs of the person and, where required, this solution would be a multi-agency response. The Working Group considered that the Community Welfare Service was best placed to deliver this service. The vital factor was that the scheme was administered by caseworkers who would interact with the various agencies that deal with the individual s basic needs. 3.3 The Working Group recommends that the matter of duplication in the DSFA administration of means testing be addressed as a matter of priority. Therefore, the Working Group recommends that one means test only be conducted. At that means test all the blocks of means information that will be required for the various social welfare schemes should be collected. Ultimately this would be best operated using a shared means database rather than paper files The Working Group concluded that any merging of income support DSFA programmes, as discussed in Chapter 4.6, Chapter 7.3 and later in Chapter 9.3 of this report, could only happen with a standardisation of means assessment for the basic assistance payment. In this regard the Working Group has made a number of detailed recommendations in Chapter 7 (see Chapter 7.16 for a summary of these recommendations). REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 19

20 EXECUTIVE SUMMARY Reference High-Level Recommendations Responsibility 3.4 The Working Group recommends that: DSFA and HSE the procedures for the determination of decisions and appeals under the supplementary welfare allowance scheme, as set out in Regulations S.I No. 107 of 1998 be adhered to, the HSE Appeals Officers and the Department should agree a revised template for recording such statistics, and the HSE Appeals Officers and SCWOs should meet on a regular basis to discuss policy issues arising from current determinations; the Department should be included in these discussions as required The Working Group concluded that although there were control DSFA and HSE procedures in place, the fact that control activity up to 1st June was not routinely reported upon was an inefficiency in the system. In the absence of control reports, it was not possible for the Group to comment on whether the control measures in place were adequate. The Group recommends that the new control returns should be monitored by the HSE and the Department, on an ongoing basis, to determine the impact of this measure. Note: After the Working Group had completed its deliberations, the Government decided that: Income support and maintenance schemes, together with associated resources, should be transferred to the Department of Social and Family Affairs. 3 3 Government Decision S22485I of the 28th of February, Department of Social and Family Affairs

21 CHAPTER 1 INTRODUCTION 1.1 Introduction to Supplementary Welfare Allowance The supplementary welfare allowance (SWA) scheme is the safety net within the overall social welfare system in that, subject to qualifying conditions, it provides assistance to any persons in the State whose means are insufficient to meet their needs and those of their dependants. SWA provides a minimum weekly allowance to eligible persons who have insufficient means. Those eligible for assistance under the SWA scheme are normally in receipt of a social welfare or Health Service Executive payment. Certain qualified persons with low incomes may also be entitled to a weekly supplement to meet specific needs such as rent or mortgage interest supplement, diet supplement, heating supplement, or a once off payment to help with the cost of any exceptional needs they may have which they could not reasonably be expected to meet from their own resources. There is also provision for an urgent needs payment whereby someone who is normally excluded from payment of SWA may qualify for a payment (e.g. because of fire or flood). The supplementary welfare allowance (SWA) scheme was introduced in 1977 as the scheme of last resort to provide financial and other assistance on the basis of need with the objective of breaking the cycle of poverty in Ireland. Total SWA expenditure for 2005 was 726m, including administration costs of 47m. The SWA scheme is administered by over 700 Community Welfare Officers (CWOs) and 62 Superintendent Community Welfare Officers (SCWOs) from 1,050 sites within the Community Welfare Service (CWS) of the Health Service Executive 4 under the general direction and control of the Minister for Social and Family Affairs in accordance with guidelines issued by the Department. The Department of Social and Family Affairs has no function in deciding entitlement in individual cases. 4 In January 2005, the 8 former health boards were replaced with a single organisation, the Health Service Executive (HSE). The HSE is structured around 4 administrative areas (HSE West, HSE South, HSE Dublin/North-East, HSE Dublin/Mid-Leinster). The Community Welfare Service (CWS) forms part of Primary, Community and Continuing Care, which is delivered through 32 Local Health Offices. REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 21

22 CHAPTER 1 - INTRODUCTION 1.2 Background to the Government s Expenditure Review Programme In 1996, the Co-ordinating Group of Secretaries established under the Strategic Management Initiative (SMI) identified in Delivering Better Government 5 a need for a systematic analysis of what is actually being achieved by the billion in Government resources spent annually and recommended that: agreements between the Department of Finance and individual Departments on delegated authority for programme expenditures (should) provide a schedule of reviews of expenditure to be carried out during the currency of the agreements, with the aim of ensuring that each programme of expenditure is subject to a thorough review at least once every three years. The Government accepted this recommendation and approved a programme of reviews with the twin aims of providing: a systematic analysis of what is actually being achieved by expenditure in each spending programme and a basis on which more informed decisions can be made on priorities within and between expenditure programmes. 1.3 Structure of the Review Programme The reviews are carried out in the Department of Social and Family Affairs (DSFA) by Working Groups chaired at Principal level and made up of officers from the policy and executive sections of the Department, other relevant Departments and agencies and the Department of Finance. The Working Groups report to a joint Department of Finance/Department of Social and Family Affairs Steering Group that oversees the programme of reviews. This Steering Group is chaired by the Secretary- General from the DSFA and is comprised of appropriate officers at Assistant Secretary, Principal and Assistant Principal level. At the central level, a Steering Committee has been established to oversee the Civil Service wide programme of reviews and this report has been prepared with this Committee in mind. 1.4 Terms of Reference The terms of reference for this review are: To consider the current Objectives of SWA and a) identify the original objectives, having regard to the context of the Community Welfare Service as originally envisaged; b) identify the extent to which the original objectives remain valid; 5 Delivering Better Government, Department of the Taoiseach, May Department of Social and Family Affairs

23 CHAPTER 1 - INTRODUCTION c) evaluate the extent to which the original objectives remain compatible with the Department s Statement of Strategy and with the Strategies being pursued by the Department of Health and Children and by the Health Boards; d) evaluate the extent to which the original objectives have been achieved, taking account of other relevant arrangements; e) evaluate the extent to which the original objectives warrant the allocation of resources on a current and ongoing basis; f) identify additional objectives which are explicitly or implicitly pursued through SWA, consider whether they are valid, compatible with the relevant Statements of Strategy, have already been achieved or warrant resources on a current and ongoing basis; and to g) consider what should be the appropriate objectives for the SWA scheme, having regard to the Government s Policy Programme, Sustaining Progress (and previously Partnership 2000), the National Anti-Poverty Strategy, the Department s Strategy Statement and other agreed policies. To consider SWA programme and administrative costs and a) establish the extent and trend of these costs; b) define the outputs associated with scheme activity and identify the level and trend of those outputs; and c) comment on how efficiently and effectively the scheme has achieved: i) its original objectives; ii) additional objectives pursued through SWA having regard to: any anomalies, inconsistencies and administrative inefficiencies within the SWA scheme and between SWA and other relevant schemes; the extent to which recurring need currently met through SWA could more appropriately be met through other means within the social welfare system; and the extent to which SWA is used to deliver services proper to other agencies. To examine the scope for alternative policy and organisational approaches to achieving the objectives which are appropriate to SWA and any others currently pursued through SWA, having regard to: a) the efficiency and effectiveness of the current arrangements; b) the role of SWA within the Community Welfare Service; and c) the potential for enhancing the role of Community Welfare Officers (CWO) in the context of SWA or otherwise. To specify suitable performance indicators which can be used to monitor and evaluate the scheme in the future. REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 23

24 CHAPTER 1 - INTRODUCTION 1.5 Background to the SWA Review In June 1998 the Comptroller and Auditor General published a Value for Money Report on the administration of SWA which recommended the transfer of the administration of some or all of the entitlement based payments from the former Health Boards to the Department. In 2000, given the changing nature of the scheme, the rapidly increasing levels of expenditure and the range of changes being proposed in relation to individual aspects of the scheme, the SWA scheme was selected for review. It was decided that a fundamental appraisal of the SWA scheme aimed primarily at improving customer service and administrative efficiency was required. The review began in February However, after an initial series of meetings, where a substantial amount of preparation work was achieved, progress with the review slowed due to staffing resource difficulties within SWA Section. These resource difficulties were resolved in Following the resolution of the resource difficulties and because of the complex nature of the SWA scheme, with its numerous component parts, it was decided to carry out this review in two phases. The report of Phase I of the review was published in December 2004 and Phase II commenced in February Phase I of the Review The first phase of the review: outlined the background to the scheme, gave an overview of the current scheme, identified the objectives of the scheme, outlined the overall trends in recipient numbers and expenditure, considered the relevance of the scheme objectives in the context of the various Government and Departmental strategies, and highlighted the issues identified for further consideration by the Group in relation to each component part of the scheme. 24 Department of Social and Family Affairs

25 CHAPTER 1 - INTRODUCTION Working Group The Working Group for Phase I of the review comprised representatives from the Department of Social and Family Affairs, the Department of Finance, the Department of Health and Children and the then Health Boards. Group membership was as follows: Brendan Friel 6, DSFA Chair Kieran O Dwyer 7, DSFA Seadna Mac Seoin, DSFA May Carroll 9, DSFA (Secretary) Seamus Woods, MWHB Ray Meade 11,ERHA John Ryan 13, DSFA Eddie Rice, DSFA Finbarr Hickey 8, DSFA Christy McDonagh, DSFA Sean O Donnell, DSFA John Fitzpatrick 10, D/Finance Paula Mullin 12, D/Health & Children Stephen Hanna 14, DSFA Methodology and Consultation Process In order to identify and examine the objectives of the supplementary welfare allowance (SWA) scheme and to assess its future role the following methods were utilised: An historical analysis of the scheme based on Department s files, Dáil debates and Parliamentary Questions (PQs) was carried out. These sources describe the initial objectives of the scheme and their development over time. The major changes in the scheme were charted and the original objectives were examined. Submissions were invited from all Health Board personnel, from Chief Executive Officer to Community Welfare Officer, involved in the operation of the supplementary welfare allowance scheme; the Department s management; other Departments, statutory bodies and agencies; and other relevant groups. This amounted to some 2,000 direct requests. In addition the Group placed an advertisement in the national press seeking views of individuals and groups. Some 145 submissions were received and these were considered by the Working Group as part of its deliberations. The names of the individuals and groups who responded are listed in Appendix 2 of the Phase I report, together with an outline of the issues raised. The following statistical sources were used to provide a quantitative analysis of scheme expenditure and recipients and to highlight changes over time: DSFA Statistical Information on Social Welfare Services (various years). DSFA computer system analysis, and DSFA Departmental files. A review of relevant literature was undertaken as part of the process. Details of the publications reviewed and a summary of the specific issues relating to the SWA scheme are included in Appendix 1 of the Phase I Report. 6 replaced Brian O Raghallaigh. 7 replaced Gus Murray. 8 replaced Deirdre Nichol. 9 replaced Mary McSharry, left Group April replaced Tom Clarke, Tom Murphy. 11 replaced Hugh Kane ERHA. 12 replaced John Gillen D/Health & Children. 13 replaced Martin Finucane. 14 replaced A M O Connor, left Group April REPORT OF THE WORKING GROUP ON THE REVIEW OF THE SUPPLEMENTARY WELFARE ALLOWANCE SCHEME PHASE II 25

26 CHAPTER 1 - INTRODUCTION Summary of the Phase I Report The Phase I report was set out as follows: Chapter 1 Introduction Chapter 2 History, Background, Description and Scheme Profile Chapter 3 Objectives of the SWA scheme and Current Relevance Chapter 4 Expenditure Chapter 5 Policy and Administrative issues Chapter 6 Proposals for Phase II 1.7 Phase II of the Review The second phase of the Review commenced in February 2005 and consisted of an in-depth examination of the SWA scheme which: considered the issues raised in Phase I of the Review, examined the efficiency of the principal component parts of the scheme, examined the effectiveness of the principal component parts of the scheme, examined the validity of the objectives, and in the light of the above, as appropriate, made a series of recommendations in relation to the future of the scheme. Working Group Membership The Main Working Group for Phase II comprises representatives from the Department of Social and Family Affairs, the Department of Finance and the Health Service Executive. Membership is as follows: Paul Wilson (Chair) 15, DSFA Benny Swinburne 16, DSFA Finbarr Hickey, DSFA Michael Daly, DSFA John Fitzpatrick, D/Finance Tom Ryan, HSE Karen Byrne 19 (Secretary), DSFA Kieran O Dwyer, DSFA John Ryan 17, DSFA Eddie Rice, DSFA Christy McDonagh, DSFA Ray Meade, HSE Tom Kennedy 18, HSE The Department of Health & Children was also invited to nominate a representative for Phase II of the Review. However, that Department responded that it considered that HSE representation was more appropriate and declined membership of the Group. 15 Paul Wilson was replaced on the Working Group by Don Watts, Principal, DSFA in January replaced Sean O Donnell, DSFA. 17 left Group September Tom Ryan & Tom Kennedy replaced Seamus Woods, HSE. 19 replaced JP Dunham, DSFA. 26 Department of Social and Family Affairs