Benefit and Abatement System – a Poverty Trap!

People with long-term health conditions and disabilities need additional help

People with long-term health conditions and disabilities need additional supports and these come with costs. The benefit system no longer adequately meets these costs. Only some of the costs of health care are met by the health system while many critical interventions, such as GP visits that may be needed frequently, require a co-payment. Some healthcare and disability costs are not funded at all and because they can be expensive are not affordable on a low income or benefit, meaning people are forced to live without essential interventions like hearing aids, glasses or dentistry. Transport costs can be high for these people as is suitable housing. Having their health needs met is a prerequisite to suitable employment. Many people with these long-term or permanent conditions have limited ability to work or require additional (largely unfunded) workplace support to work.

Some people may never be able to work – what then?

Some people with disabilities or permanent health conditions may never be able to work. Requiring them to undergo regular reassessment for work readiness is a waste of everyone’s resources and is intrusive and disrespectful. The current benefit system forces these people to live a life in poverty with no ability to save, no provision for holidays, cultural pursuits, or participation in activities for social inclusion. These people tell us they are anxious about how they will provide for their retirement especially relating to finding a safe place to live and dealing with social isolation. 

What happens when people must first exhaust any savings to qualify for assistance?

Most people who can, save a buffer for unexpected expenses and for their retirement. Not only is this an important future provision for their long-term wellbeing but it provides a sense of financial security. Forcing people to spend almost all their savings before any help is available means they are often living in precarious circumstances that causes anxiety and other health or social problems. The benefit system also contains anomalies as the value of savings that can be retained varies substantially between benefit streams. This is unjustified because there is no clear rationale for the differences based on people’s needs.

How could the benefit system be updated to work better?

Benefit levels need to be sufficient to meet people’s basic cost of living and be indexed to the wage index to ensure they stay that way.

Benefits need to be tailored to people’s needs. People temporarily out of work and seeking new employment have different support needs to those who have been unemployed for an extended period and have complex needs that affect their ability to sustain employment. When people live with disabilities and long-term health conditions their support needs may not include any focus on employment at all. Alternatively, employment may need to be part-time or periodic, flexibly aligned with when they are able to work. This may include supported employment assistance, which is in short supply. Additional assistance for employers to meet the costs and challenges of such employment arrangements is required. In this situation effective co-ordination with other agencies is essential, promoting personal autonomy using a person-centred approach. For people with disabilities and permanent health conditions this would mean an end to unnecessary reassessments with associated savings to MSD and the health and disability sectors.

The benefit system needs to be simpler to access and administer. Raising benefit levels, lifting the abatement threshold, and refocusing the system on meeting needs would reduce the need for the complex system of supplementary benefits. It would also allow case managers to focus on ensuring that people were receiving the correct benefit and co-ordinating support rather than policing compliance. This would drive a positive change to people’s experience of the benefit system.

The benefit system must be respectful, collaborative and support people to live with dignity so they can contribute to their communities.