A ‘SIGNIFICANT cause’ of financial hardship among Jersey residents is the overpayment of income support benefits – with claimants often being driven to food banks while they pay back the debt – according to the Salvation Army.
And a Scrutiny panel has heard that some Islanders have reportedly considered suicide as a result of the stress induced by their debts.
Social Security Minister Elaine Millar told the Health and Social Security Scrutiny Panel this week that there were safeguarding protocols in place should there be concerns about a claimant.
The Salvation Army has said the current income support system is ‘too complicated’ and that vulnerable Islanders, such as elderly individuals, can find themselves unknowingly receiving overpayments and falling into debt.
In June, the Scrutiny panel launched an investigation of the extent and causes of the overpayments and the effects they were having on claimants. In a written response to the review, the Salvation Army said it had witnessed ‘daily’ examples where repaying income support benefit overpayments had left people ‘in financial hardship and poverty’.
The charity added: ‘As one of the three major food bank providers in Jersey, the majority of people accessing our food bank service are recipients of income support. A significant number of those we support cite repaying debt from overpayment of income support as a major contributory factor to their reliance on our service. Whilst this is anecdotal evidence, it indicates that overpayment of income support and consequentially the paying back of this debt is a significant cause of financial hardship here in Jersey.’
The Salvation Army also said it was regularly told the income support process was ‘hard to navigate’.
‘Often people describe not understanding the policies and legislation that underpins the income support benefit. They say that the information provided online is difficult to understand, making it difficult for them to know what they should receive. Checking that their benefit is correct for their circumstances is not easy.
‘Added to this, it is our experience that advice given by staff at Social Security varies from adviser to adviser for the same specific situation. It is our opinion that the entire income support system is too complicated,’ the response continued.
‘This over-complicated system and the lack of clarity in the guidance given by Social Security both in-person, over the phone and online, disproportionately impacts the most vulnerable in society. For example, a number of older people that we have supported, for whom there is the added complication of pensions from Jersey and overseas, have found themselves inadvertently owing large amounts of money after unknowingly receiving overpayments.’
During this week’s hearing, Scrutiny panel chair Deputy Rob Ward said: ‘Three out of five members of the public that we met had tried to commit suicide or had suicidal thoughts due to the stress caused by the debt.’
Deputy Millar said that the department tried to set repayments ‘at a level that a person can afford’ and also had safeguarding protocols in place ‘if we were concerned about them’.
‘If someone presents in a clearly troubled state, then we have a safeguard,’ she continued.
In a statement issued yesterday, Deputy Millar added: ‘I would encourage any Islander who has any questions or concerns related to their benefits, eligibility, or any other inquiries, to get in touch with CLS [Customer and Local Services]. In particular, any Islander who is worried about repaying an overpayment should contact the department to discuss their repayment plan.’
Customer and Local Services director general Ian Burns said the median amount for overpayments was about £200.
Customer and Local Services can be contacted in person at La Motte Street, online via the gov.je website or by calling 01534 444444.
