Council of Ministers' Response to the Report of the Select Committee of Tynwald on Poverty: First Report for the Session 2020-21 Income and ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
GD No. 2021/0056 --
Council of Ministers’ Response to the
Report of the Select Committee of
Tynwald on Poverty:
First Report for the Session 2020-21
Income and Benefits
July 2021
1
To the Hon Steve Rodan OBE BSc (Hons) MRPharmS MLC, President of Tynwald,
and the Hon Council and Keys in Tynwald assembled.
Foreword by the Minister for Policy and Reform
The Council of Ministers welcomes the report and
recommendations of the Select Committee of Tynwald on
Poverty: First Report for the Session 2020-21 on Income and
Benefits 1.
This response has been compiled for Council of Ministers by its
Social Policy and Children’s Committee which includes all the
relevant Departments; Treasury, Department of Education, Sport
and Culture, Department of Health and Social Care and Cabinet
Office.
The Council of Ministers acknowledges the wide scope of the issue of poverty – alongside the
inherent complexity that comes alongside an examination of the relevant issues.
I should like to express my thanks to the Select Committee for their considerable work,
and diligence, in examining these issues, and for contributing to an increased awareness
of these matters.
Hon R Harmer MHK
Minister for Policy and Reform
1
PP 2021/0105 refers
2Background and context
The Council of Ministers notes that this is the Select Committee on Poverty’s second report, specifically
examining income and the Island’s benefit system, which is connected to the section of the Committee’s
remit which states:
‘….to investigate the underlying causes of poverty and how people have ended up in poverty,
and −
…to assess the policies, programs and measures in place by Government and others to tackle poverty.’
It is further noted that that the Committee’s first report – on Poverty Definitions and Data2 – was laid
before Tynwald in December 2019, where it highlighted a ‘need to define and measure poverty in the Isle
of Man’ contending that ‘the reason for measurement is to inform policy and practice.’
Accordingly, the Council of Ministers has considered the second report’s fifteen substantive
recommendations, and prepared a response to each, as below:
2
https://www.tynwald.org.im/business/pp/Reports/2019-PP-0122(1).pdf
3Recommendation Commentary Response
1 That the Council of Ministers A range of actions has already been Accept
should ensure actions completed in relation to the First
approved by Tynwald Report of the Select Committee on
contained in the First Report Poverty with many of the other actions
of the Select Committee on being longer term or perpetual in
Poverty are completed by nature.
the 31st December 2021,
and make a report to Part 1 of Recommendation 1,
Tynwald to confirm that this Recommendation 2, and
has been done no later than Recommendation 3 are all inter-
February 2022. related and the best opportunity to
accurately measure poverty on the
Isle of Man using the Social Metrics
Commission is through the next
Household Income and Expenditure
Survey, which is due to be undertaken
in 2023/24.
Recommendation 4 is similar to a
recommendation already approved by
Tynwald in October 2019 for DHSC
and the DOI in relation to a statutory
definition of homelessness, which
would include rough sleeping for
completeness.
Recommendation 5 is a longer term
recommendation, however the
Minimum Income Standards are
published as part of the Living Wage
Report each year (which also
addresses part two of
Recommendation 1), and the next
Household Income and Expenditure
Survey is again, due in 2023/24.
Recommendation 6 is similarly a long
term recommendation, however a
statistics schedule was published in
March 2021 and the Code of Practice
for Statistics will be published shortly.
Recommendation 7 has been
implemented and Recommendation 8
is a Tynwald matter.
42 That the Council of Ministers Once poverty measures are Accept
should report annually to established in line with
Tynwald on poverty Recommendation 1, then the Council
measures including the of Ministers Social Policy and
effect of Government Children’s Sub-Committee (“SPCC”)
actions being undertaken could co-ordinate a streamlined cross
which have the aim of government annual report on the
reducing poverty. relevant measures.
Notwithstanding such, no formal
poverty measures have yet been
defined. However, the Social Security
Division already provides many
considered interventions intended to
help people back into work outside of
benefits alone, such as:
• The Manx Restart Scheme
• Supportive work focused
conversations
• Comprehensive Employment and
Career Advice
• Formal Work Placements
• Coaching and mentoring
• Varied training and qualification
opportunities
Additionally Employed Persons
Allowance is integrally designed to
encourage people to take up work,
and increase hours and earnings in
order that individuals are financially
better-off the more that they work −
irrespective of pay and childcare costs.
3 That service level The principle behind this Accept
agreements be put in place recommendation [of working with the
with accredited charities to third sector to assist services users] is
allow funding streams and accepted.
processes for referrals and
information sharing which Service level agreements attached to
would assist service users. allocated funding would be subject to
Isle of Man Government Financial
Regulations and best practice around
open and fair competition.
This further aligns with the direction of
travel towards a more commissioning
based footing, moving away from
previous grant models to ‘outcome
based’ delivery with appropriate
standards.
5In respect of the term ‘accredited’ –
this could link to due diligence carried
out under any financial allocation
process.
Information sharing would need to be
done in compliance with data
protection legislation.
4 That the cost of living The process of price comparisons is Accept
comparison, last published already conducted − to a greater level
by Treasury in July 1991, of detail − as part of the Living Wage
should be repeated, by calculations, where the minimum
December 2022, to better income standards are compiled for 10
understand the differential different household types. This has
between the Isle of Man and been available for 2017, 2019, and
the UK. 2020 and more recently for 2021 also.
5 That Tynwald is of the This would mean that the Manx Amend
opinion that 100% of Taxpayer would potentially be paying
pension contributions, up to the whole of an Employed Persons T‘ hat Treasury should
a defined maximum, are Allowance (EPA) recipient’s review the current
discounted when calculating contribution towards their pension provision for 50% of
income in relation to scheme whilst many people who don’t pension contributions to
entitlement to Employed qualify for income related benefits be disregarded for
Persons Allowance. don’t have a private pension scheme Employed Persons
themselves and can’t afford to Allowance purposes, and
contribute to one. consider whether a higher
level of disregard could
incentivise appropriate
retirement planning whilst
avoiding unintended
consequences’
6 That Council of Ministers The Council of Ministers notes the Accept
should have an overarching nuances and differences between
statement which sets out to absolute and relative poverty – and is
what degree, and on what minded to advise that it cannot
terms, it accepts poverty in collectively ‘accept’ any degree of
our society; this must poverty – that state being
reference the measures incompatible with the Programme for
agreed by Tynwald in our Government.
first report.
7 That Tynwald is of the The Council of Ministers notes the Accept
opinion that the direction of travel globally in respect
minimum wage should of the living wage.
transition to the living
wage within five years.
6with an update on progress towards update on progress
such. towards such .”
8 That Tynwald is of the Section 150 and Schedule 4E of the Amend
opinion that benefit rates Social Security Administration Act
should be set as a 1992 (as applied to the IOM) specifies “That Tynwald is of the
proportion of the living the issues which the Treasury should opinion that income
wage; with provision for have regard to when conducting its related benefit rates
additional needs to be met. annual review of benefit rates. should include a
proportional link to the
Treasury should amend this to reflect living wage and that
the findings of the committed review Treasury should review
when complete to ensure the the current policy on
legislation reflects the types of costs setting benefit rates and
and issues that should be considered report findings by early
when reviewing benefit rates each 2022.”
year.
Linking non income related benefits to
living wage could be extremely costly
and poorly targeted as many
recipients receive non income related
benefits in addition to earnings (e.g.
DLA) and or whilst also having high
levels of household income and or
capital.
9 That Tynwald is of the The effect of this recommendation Amend
opinion that the capital tariff would be that effectively a person
factor needs reform to be could retain all of their capital held in “That the Health and Care
more reflective of the property whilst receiving tax funded Transformation
income that can be benefit to meet their essential needs. Programme, in
generated from the asset The capital tariff as it is currently set considering options for
rather than its capital value. may require a person to draw down the funding of long term
on their capital, or for family to care, will have regard to
contribute in order to protect their the actual income that
inheritance and avoid the sale of the can be generated from an
property. This recommendation would asset, as well as its capital
have very significant cost implications value, when considering
and will not impact on poverty as by how to assess means for
definition those affected have access to financial support
significant assets and are not in for care.”
poverty.
There is no similar provision to the
property tariff in England and Wales
where if a person’s assets are more
than £22,250 they have to meet all of
their care costs until their assets fall
below that level. So Isle of Man is
already significantly more generous
than England and Wales in this regard.
7Additionally, the Health and Care
Transformation Programme is already
looking at the long term funding of
care with the aim of exploring
alternative models. Any changes to
the treatment of property need to be
considered as part of this wider
review.
10 That Tynwald is of the Subject to acknowledging that an Accept
opinion that free school appropriate, fair and equitable policy
meals should be made would need to be in place to achieve
available wherever there such.
appears to be reasonable
justification to support the
needs of the child.
11 That all clients should be Council of Ministers accepts the need Accept
provided with appropriate for a comprehensive communications
support to ensure they are drive on this issue via engaging social
able to claim all benefits to media, through primary care via GP’s,
which they are entitled, that in local pharmacies, and perhaps also
they are aware of any in school bulletins.
passported benefits and
connected to any relevant It is recognised that promotion already
third party support services. takes place in many forums such as
forms and leaflets, letters, webpages
etc., but improvements into any
transformation programme would be
beneficial.
12 That the application forms Accept
and processes should be as
simple as possible, with
interdepartmental
information sharing in place
to provide key pieces of
evidence quickly and
efficiently and with access
to online applications.
13 That where claims can only Treasury would not consider it Amend
be made for a specified appropriate to accept a re-claim for
period of time, a further any benefit on the strength of a “That where claims can
application will not require simple statement, for example “My only be made for a
all information to be re- circumstances haven’t changed since I specified period of time, a
input, but a simple review last claimed”. However, through the further application will not
and resubmission. ongoing Social Security Division require all information to
Transformation Programme and the be input where
development of an online portal, we appropriate.”
shall aim for the auto completion of
claim forms (as far as possible and
8appropriate) where appropriate to do
so and without an increased risk of
fraud.
14 That Tynwald is of the Treasury already issues free bus Amend
opinion that free travel passes to people who need assistance
passes should be included in travelling to work, work searching or “That Tynwald is of the
the range of passported selection activities. opinion that free travel
benefits available to those passes remain an
on low incomes. Any passport benefits have the essential part of welfare
potential to narrow financial gap support offered to those
between work and benefits and who need it to actively
therefore risk dis-incentivising work, seek employment,
particularly low paid work. persons with disabilities
and pensioners, and that
Treasury should review
linking travel passes to
income related benefits
where there is evidence of
long term hardship.”
15 That Tynwald is of the Council notes that the Social Security Accept
opinion that essential Division’s general enquiries phone line
Government telephone is already Freephone and is expected
numbers – for example to remain so.
those relating to health,
housing or finances, should Council also notes the useful key
be free to call. learnings from the successful Covid-19
Community Support Line.
9You can also read
