New bill to overhaul future of welfare support
(CNS): Less than sixteen months after taking office, the minister responsible for social welfare has presented a new bill to overhaul the public assistance regime and create a new system to help the most vulnerable in the community. The Financial Assistance Bill, which repeals the existing Poor Persons (Relief) Law, is now open for public consultation. Minister André Ebanks said it creates a modern legislative framework for more effective service, public finance accountability and a bridge to self-sufficiency for able clients.
“The government’s plan to overhaul services for the most vulnerable in the Cayman Islands has taken a leap forward today with the introduction and publication of the Financial Assistance Bill, 2022,” he said Friday as the bill was published. “People who are in a position to require government’s financial assistance deserve to be treated with dignity and compassion. This is evident even in the title of the new legislation, which delivers a comprehensive replacement for the outdated and egregiously named Poor Persons (Relief) Act.”
He explained to CNS that this bill paves the way for a number of changes to how the regime works and creates clear criteria for how people qualify. The major changes will be set out in the development of transparent regulations, he said.
Ebanks said around two-thirds of people who get financial help from the government are elderly or disabled. Despite misconceptions about who gets money from the public purse, only a tiny percentage goes to those who are able-bodied and have no dependents. Ebanks told CNS that the new regime would focus on getting those people into work and that those who are able would be required to do something for the benefits they receive, such as re-training, returning to education or doing voluntary work.
The bill, which is expected to be presented to Parliament in September, defines the functions of what will become the new Financial Assistance Department, currently the Needs Assessment Unit and its duties. It also confirms who by law is eligible for government financial assistance. This is confined to Caymanians, spouses of Caymanians or guardians of Caymanian dependents, all of whom must be resident on island during the time of the application.
It develops a more holistic approach to individuals receiving government assistance, including the introduction of conditions that will be attached, in particular for households with adult members who are able to work. It also builds in transparency and accountability for decisions, including dealing with grievances and a new appeals tribunal, as well as the protection of personal information.
Importantly, the bill enables Cabinet to create regulations for the implementation of the law after it is passed by Parliament. Ebanks said these regulations are likely to cover the number of working days in which the department will be obligated to process complete applications, exemptions for emergency circumstances, transitional services, and widening the safety net to take into account household sizes, as well as issues related to the composition of families seeking assistance.
It will be looking at increasing the cut-off threshold and examining more tricky issues, such as how to help older people living with their adult children who in the past could not get support because the whole household earns more than the current CI$3,000 household qualification amount.
While the 2022-23 budget has already accounted for the transition of the department and more staff, the 2024 budget will be increased to allow more people to benefit from financial assistance. Cabinet will need to approve a future increase in spending so more people can get help to strengthen the safety net. As a result, the regulations to determine how wide the net should be is still in discussion. But Ebanks said he is hopeful that by the time Parliament meets again, he will have a working draft of who will be saved by the net in future and how.
In the meantime, he said, it’s important to pass the new legislation. “We need sweeping, whole-scale changes to modernise government’s involvement with social development in the Cayman Islands, and the ministry will continue to pursue reforms to deliver those changes for the benefit of our people,” Ebanks said.
Passing the bill will also provide for the collection of information. Ebanks said that the new department will use technology to access “the chest of poverty data” that the Needs Assessment Unit has been sitting on but couldn’t access. “With no real statistical analysis, it’s hard to solve the problems or understand why people are facing poverty,” the minister noted.
The NAU currentlyU helps more than 1,400 families in one way or another, from paying rent or light bills to food vouchers. Most are elderly, disabled or those with dependents, most of whom are single parents. But a series of focus groups by civil servants highlighted problems with the system and holes in the social safety net, which has led to the review of how benefits will be given out.
Acting Deputy Chief Officer Rayle Roberts said the bill was developed by talking to various stakeholders, including those who currently use the system.
“The new legislation came to fruition through significant and extensive consultations undertaken by the ministry with a wide array of community partners, including health practitioners, other professionals, NGOs, philanthropic and civic organisations,” he said. “This dialogue revealed the significant extent to which all of these individuals and entities play a crucial role in understanding and overcoming the barriers to advancing social development in our community. We will continue to leverage this collaborative model going forward,” Roberts added.
Ebanks said the goal was to reduce direct cash payments as much as possible and offer the kind of support that people need to get to work. So for single parents, this may include childcare costs, transport, internet and phone connections.
“We want to help the able-bodied on the road to self-sufficiency,” Ebanks said, which means looking at things other than rent allowances and food vouchers. He explained that not having the means to get to work or an internet connection to apply for a job are the types of expenses the government needs to consider to get the unemployed into work and away from government assistance. Cayman does not have a problem with a lack of jobs; its problem has been getting its own people into those jobs, Ebanks noted, as he outlined some of the broader goals.
Over the last few months, changes have been made to streamline the processes for those applying for help. In December 2021, the NAU launched an online application portal that can be accessed through its website or an active Digicel smartphone.
The renewal policy for elderly clients and those with permanent disabilities can complete a “continuation certificate” if their circumstances have not changed instead of having to reapply. This will reduce the burden on people who genuinely need financial assistance and free up staff to help those who can work and move away from government dependence.
See the bill in the CNS Library.
Anyone wishing to comment on the bill should email mofsd@gov.ky by 14 September.
The Ministry of Investment, Innovation and Social Development will acknowledge receipt and all responses will be treated confidentially but may be published on an anonymous basis. Responses may also be shared internally in the ministry and with other relevant government entities for purposes of policy development.
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“ While the 2022-23 budget has already accounted for the transition of the department and more staff, the 2024 budget will be increased to allow more people to benefit from financial assistance. Cabinet will need to approve a future increase in spending so more people can get help to strengthen the safety net”.
The Social Welfare tab is well on its way to becoming an expense monster that Government will not know how to control. Come to think of it, it’s already out of control!
the poorer your constituents, the easier it is to buy their votes.
2.30pm …and wealthy
constituents can can buy and influence the Govt leaders and poorer constituents.
Government still talking and no action with the prices of everything going up and inflation on the rise the The most vulnerable and seaman can’t live off 950.00 a month even the stipend was making more a month than them they need to up the moneys for the poor for them to live a little more Comfortably, with government having such a big Purse to work with they can do better than that.
If NAU just paid on time it would solve at least some of the problems. Landlords would know they would get paid on time, people could budget properly for the week and be less likely to run out of food for their kids.
Take out the drunks, junkies and criminals and the list of recipients will be shorter. Ensure all recipients and what they receive are on a public register too.
This is sad!!!!!
One of the richest countries in the region and we need new “poor relief” legislation. Bit of advice to Minister Ebanks, changing the name won’t make poor people disappear, stop playing with words, they are poor!
So, the PACTS answer to the growing economic divide between white collar Expats and Caymanians, imported cheap labour and new Caymanians from the region (Jamaica, Honduras, Cuba primarily) is what? Build a new prison and increase the budget for “poor relief”?
What happened to all those good ideas these independents campaigned on to improve education, social conditions, and opportunities for Caymanians?
Kenneth, When are we going to implement the Caymanian only jobs?
When are we going to offer the type of training that the labour market is demanding?
Every day I see a new compliance job being advertised with very good salaries and equally competitive education and training requirements? Why is the Government not embarking on a campaign to offer scholarships for STEP, ICSA, and degrees in this field? We cannot be surprised that there are so many compliance jobs if we have been paying attention to international regulations and laws for the past few years.
I know a Canadian compliance person who has had around 3 different compliance jobs in the past year, she keeps getting fired because she really is not qualified but she keeps getting the job offers.
This leads to the next question? When are they going to address discrimination based on nationality? Its there, we all know it, but again we have a Government who decides its safer to not piss off the business community and the band plays on …..
This is nothing but a feel-good Bill that PACT will swear up and down helps Caymanians but their omission in other areas will mean that we have to continuously increase the budget to feed our people.
I really expected better PACT!
Ask the AG what his professional advice is about these things and, if he does answer, try to keep a straight face and not laugh. 😂🤣
While the poor will always with us, the plethora of domestics and similar retirees who are now Caymanian and now abandoned by their overseas remittance relatives will be a burden.
And
Why is the Native local not even acknowledged as deserving support if destitute??!
I see pandemic experts have become sociology experts in record time.
Nothing to do with sociology really. It’s more along the line of anthropology.
i have a dream,,,that one day cig will implement just one recommendation of miller shaw or e&y reports.
i have a dream….that one day cig will announce plans curb uncontrolled spending and expansion of the civil service.
i have a dream…..that one day cig will take measure to stop welfare fraud in these islands
i have a dream…..that one day cig will prosecute those who commit welfare fraud in these islands
Does your dream include turning a blind eye to white collar crimes?
Whataboutism
3:26 all of this has been dome other that the diller paw report which was rubbish.
I think you are having nightmares
Yea yea….go pact go! Lol
So $3000.00 a month is the threshold for Poor Relief from Government. Looks like they will be providing lots of relief to pensioners since they can only draw 1075.00 a month from their pensions regardless of the money invested. Basically if you want to retire in Cayman you will be living below the threshold considered to need Poor Relief.
Less the $4,000 deducted in fees!
Yes you are right. The only people getting rich from pensions are the administrators. They get rich whilst the average pensioner gets barely enough to cover health insurance. All the while the Government sits and contemplates how it can deal with the growing poor demographic. If they are not prepared to regulate pension and health care charges now they will have to provide for more pensioners who cannot afford to provide for themselves.
In many countries retirees get subsidies for utilities, healthcare, public transport.
There is more than enough wealth here that could pay for these needed subsidies through luxury taxes.
If you are on a minimum wage you are apparently below the threshold too.
You are incorrect. My pension pays me CI$1800 per month. Yes that is below the threshold, but I recognised that 20 years ago so I spent less and saved more outside the pension scheme. So I hope to avoid NAU and becoming a drain on my country.
You must be on a civil service pension because private pensions are only allowed to pay 12,900.00 per year regardless of how much is invested.
11:32, you are right! The $1075 limit is ridiculous. Retirees should have the option to withdraw whatever monthly sum they choose or even lump sum of entire balance.
If I could give Minister Ebanks a handshake on this new legislation I would. I may still do so later. I have not had the opportunity to review the document for public input but he is right…the very name change says so much. I have seen “poor people” and by Cayman’s standards there are none and should be none. And so should not be described as such. I do believe there are those who are underprivileged, deprived, lacking and have no means. There are those who need help. Again the national ID system may need to come on board to track those who may try t abuse the system and service. I reserve other views until review of the Bill :-). But so far I am thrilled to know this is on the table.
No poor people? aside from the thousands of imported permit holders living 10 to a bedroom earning below minimum wage, not getting their pensions paid, paying for their own work permit fees under threat of the sack?
There are plenty of poor people here. Just most don’t see them because they are not begging in GT in front of the cruise shippers or in front of the Ritz.
Out of sight, out of mind right?
No, poster meant they didn’t count because they are not Caymanian. And the harsh fact is that they are here out of choice and have options, including moving to a lower cost jurisdiction like their homeland. A Caymanian pensioner – not so much.
Well said.
This is not true. Plenty Caymanians living in poverty, many of them elderly. They’re just too humble and proud to make noise or seek handouts finding other ways to get by. We have to face this and admit this poverty exists it if we’re ever to fix it.
“The major changes will be set out in the development of transparent regulations, he said.”
All regulations should be “transparent regulations” but, unfortunately, that is not always the case, is it?
This is a government who prize chatter and fluff. Let us see if the Act ever comes into force. They are now getting rid of travel declarations. Why have such declarations been needed for the past many months? inquiring minds want to know.
Why do we continue to allow foreign nationals to settle here in the certain knowledge that they will be a financial burden. England has dealt with the issue – the spouse of a Brit has to prove significant household income to be allowed to reside in the UK. Why do we not do the equivalent?
There be profits for cheap labor matey! #PiratesQuarter2022
The most vulnerable sector is growing larger by the day as there is no attention being paid to the failing educational system. But then again whom would expect uneducated ministers to understand education?
Drug dealers and women beaters.
Don’t forget PPM yes men (gas station owner) and yes woman. And the most TALENTED of them all, Dwayne “The Brain”.
nothing but plans and about plans for more soon-come waffle.
nothing will be achieved before next election.
all recipients should be means tested. end of story.
Means tested is “ask him who he means to wote for”.
I agree particularly the household where its generational recipients …
This is going to be a problem that will get worse, Iook at the UK. They have generations that have never worked and yet have the most children who then get welfare and so the cycle continues. No able bodied and sound minded person should get the welfare. There are so many jobs – skilled and otherwise that require all these expats to fill that no Caymanian can say they can’t get a job, I have two jobs, so if they don’t work it’s because they don’t want to work. The main problem is the cost of living which the government needs to address by allowing competition in from Walmart and others. Otherwise we will all be in poverty at retirement as pensions are not keeping up with inflation.