Media Release 19 February 2015

Transcription

1 Media Release 19 February 2015 Independent report finds welfare rights intervention for social security problems delivers wider community benefit The report, commissioned by the National Welfare Rights Network and authored by Susan Bell Research will be launched today by The Hon Alex Greenwich, Member for Sydney. We commissioned the independent research to better understand the client experience of our service, the longer term impact of our work and the gap in legal need that we aim to fill said President of the NWRN Maree O Halloran. Our services assist people who are experiencing problems accessing their correct entitlements for example claim rejection, waiting and preclusion periods, debts and rate reductions. Often these decisions are made due to Centrelink error, or because the person s vulnerability and barriers have meant they not been able to understand, collect or provide the information DHS needs to be able to change the decision. Overall, the report was extremely positive finding that NWRN members provide a quality frontline service and fill a gap in legal need that is not filled by other government or community legal services. The value clients place on an accessible telephone advice service was particularly interesting for us as Government and many services move into an age of digital servicing. It is also interesting in light of the fact that of the 52,763 complaints DHS received about its servicing during 2013/2014, 23.5% of those were about access to phone services. But it was the longer term flow on effects of our work that were really new to us, because we generally have no more contact with our clients once their Centrelink problem has been resolved. The report examined the client experience before and after NWRN intervention. It found that the pre-intervention quality of life was marked by financial instability, physical deterioration, social isolation and emotional struggle. By contrast, it found that following NWRN intervention: 20% were now able to provide for their children 20% had reduced family tension 20% either kept their home or were no longer homeless 20% had returned to work or study 30% or more were no longer considering suicide 10% were eating properly 1

2 10% became volunteers 6% reconnected with supports (Multiple outcomes for some clients mean percentages do not add to 100). There are lessons for us in the report that we will take on board as we make future decisions about our service delivery. But we are pleased that this Report has found that our high volume specialist telephone advice services model is working for people with Centrelink problems and increasing social and economic participation. We have given a copy of the report to Government as it provides valuable qualitative and statistical information about the personal and wider social impacts of incorrect decision making and the client experience dealing with Centrelink and the appeals system when problems arise. About the researcher Susan Bell Research is a respected independent research company which has been often contracted by the government regulator ASIC to research the consumer experience in the financial services sector. Comment For comment: Maree O Halloran, : Enquiries: Amie Meers, ; Additional information Below is some statistical information relating to key areas of NWRN work. Latest data on complaints Centrelink (Department of Human Services) Centrelink received a large number of complaints about its services and practices, with 52,763 complaints in , an increase of 14.1 per cent on the previous year. (DHS Annual Report) The three main areas of complaint by volume were: access to phone services, including complaints about an engaged signal, call disconnection and on-hold waiting times (23.5 per cent) staff knowledge and practice (17.8 per cent) decision making (15.8 per cent) 2

3 Centrelink Review of Payment Decisions There were 123,032 completed internal reviews in The decisions most commonly challenged were: rejection of a claim for payment, such as the Disability Support Pension; raising or recovery of debts; participation failure; start date of payment, and the rate of payment. Last year, 35 per cent (or 42,662) of these merit reviews resulted in changed decisions at internal review. At the Social Security Appeals Tribunal, 1-in-4 decisions were overturned in the financial year. Source: DHS Annual Report, , p Compensation Preclusion Periods (CPP) As of October 2014, there were 18,372 people serving a Compensation Preclusion Period. The majority, 70 per cent, were male, with 12,693 males facing a waiting period compared to 5,399 women. In , there were 5,096 Compensation Preclusion Periods applied per cent, or half of all CPP are for periods of less than 12 months, with 1-in-4 being applied for 2 to 5 years, (1,240). Nine per cent for between five and 10 years (461), and 73 for between 10 to 20 years, and 12 for over 20 years. Across at jurisdictions, in , there were z total of 903 Compensation Preclusion Periods Appealed in the last financial year. Appeals of CPP in : 692 appeals at Internal Review at Centrelink. Of these, 85 cases) or 12 per cent) were set aside (so people got access to income support), and 66 varied. So about 22 per cent of cases had their length of preclusion of social security reduced. Source: Senate Community Affairs Legislation Committee, Supplementary Budget Estimates, Question HS 166. Income Maintenance Period (IMP) In , 101,152 IMP were applied, and the average waiting period imposed was 27 days. In there were 3,906 appeals across all levels of appeal. At Internal Review at Centrelink there were 3,672 appeals, of which 1,331 (or 36 per cent) were Set Aside, and a further 300 IMPs were varied. 3

4 Source: Senate Community Affairs Legislation Committee, Supplementary Budget Estimates, HS 167. Centrelink debts/overpayments Apart from the inadequacy of social security payments, Centrelink debts are the biggest and most common problem experiences by people who receive a Centrelink of Family Assistance Office payment, and NWRN s experience is that these are an endemic problem within the system. In , there were 2,230,894 debts raised, a 10 per cent increase on the previous year. There was a corresponding 18 per cent rise in the amount of debt raised, reaching $2.2 billion in When people have to repay a debt, they are left in hardship, even though Centrelink can be flexible with the amount being repaid. (Source DHS Annual Report , p. 155.) In , there were 128,750 debts raised against Indigenous income support recipients. (Source: HS 159.) Member of a Couple cases These can occur when Centrelink asserts that a person is a member of a couple, and this is in dispute. An adverse decision can mean that a person has a large debt, that their payment is cancelled, or that they are prosecuted for Social Security fraud. In there were a total of 2,882 appeals lodged a against Member of a Couple decisions. Most of these decisions were at Internal Review (2,593), 231 at the Social Security Appeals Tribunal and a further 48 at the Administrative Appeals Tribunal. There is a high likelihood of MOC decisions being overturned. Almost half (48 per cent) of Internal Review decisions are overturned, as are 36 per cent of appeals to the Social Security Appeals Tribunal and 38 per cent of decisions to the Administrative Appeals Tribunal (when clients appeal). Across all jurisdictions, 47 per cent of all Member of a Couple decisions are overturned. In there were 22,668 MOC debts raised. Most debts were for amounts of less than 200 (n = 20,056). A further 1,538 were for between $2,000 and $5,000. There were 492 of between $5,000 and $10,000k: 260 between $10k and $20k; 195 between $20k and $50k; $100 between $50k and $100k; 26 between $100k and $150k, and 1 over $150k. In the same year, the CDPP referred 16 MOC cases to the Commonwealth Director of Public Prosecutions for prosecutions consideration. 4

5 Source: Senate Community Affairs Legislation Committee, Supplementary Budget Estimates, Question HS 38. Unreasonable To Live At Home Youth Allowance (UTLAH) In , there were 32,652 claims lodged for the Unreasonable to Live at Home Allowance. Nearly 1-in-3, (32 per cent) or 10,522 claims for the Unreasonable to Live at Home Allowance rejected. Source: Senate Community Affairs Legislation Committee, Supplementary Budget Estimates, Question HS