We are the Health and Social Security Scrutiny Panel. It's our role to scrutinise Jersey's government on matters of public importance, policy and legislation which falls within our remits.
What do we mean by Income Support Benefit Overpayments?
The Panel agreed to undertake a review of overpayments of Income Support following concerns from members of the public regarding the impact of, and the processes involved in, repaying debt to Customer and Local Services (CLS). The topic is highly personal and emotive, making it challenging to collect evidence. However, in spite of this, we heard from a considerable number of individuals, organisations, and charities, which signified the importance of the work undertaken within the review.
Whilst the Panel could not address every point raised in the submissions, we endeavoured to highlight key themes of concerns from the evidence received. The main themes we identified were:
- The significant financial and wellbeing impact,
- Shortcomings in policies and processes and inconsistency in their application,
- Concerns with Customer and Local Services’ communication.
The Panel found that, out of the 5,197 households that are currently in receipt of Income Support, 1,196 are repaying overpayments (approximately 1 in 5 of people receiving Income Support). In addition, 1,600 households whose Income Support claims have now closed are repaying overpayments. The two most cited reasons for the overpayment of benefits are errors made by CLS and the failure or delay of claimants disclosing change of circumstances.
The Panel acknowledges that small overpayments are inevitable due to the nature of Income Support benefits being paid in advance. However, in instances where an overpayment has occurred at the fault of the Department, no acknowledgment of this mistake nor apology is issued by Customer and Local Services.
The Panel's Review
The Panel launched its review on the 30th of May 2023 to consider the following key issues:
- To assess the extent and causes of Income Support benefit overpayments.
- To assess the current policy and rules regarding repayments.
- To consider the impact of overpayments on those in receipt of the Income Support benefit, including family members and delegates.
- To assess the actions, if any, that are being taken by the Minister for Social Security to address this issue.
- To consider possible solutions to the overpayment of Income Support and ways of minimising its prevalence and/or impact.
The Panel engaged with the public on social media as well as encouraging feedback from all avenues and were able to receive a range of comments and written submissions from Islanders, charities and key stakeholders on the issues highlighted. The Panel received:
- 15 targeted key stakeholder submissions from organisations and charities.
- 16 further submissions from members of the public through our call for evidence.
A Public Hearing was held with the Minister for Social Security, in addition to Private Hearings with representatives from two charities and six members of the public.
The Panel's review resulted in 45 key findings and 26 recommendations. A summary of these findings and recommendations follows next. Alternatively, to read them all in detail, click on the full report below.
Significant Financial and Emotional Impact
Many claimants repaying an overpayment of Income Support are put into significant financial hardship, and as a consequence, some individuals are in rental arrears, choosing between eating and buying medication, or accessing food banks.
A number of local charities are supporting individuals dealing with an overpayment in various ways, including emotionally, administratively and financially. This impact has been so severe in some cases that individuals have considered or attempted to take their own lives.
The Panel is not satisfied that conversations at the point of notification of an overpayment are taking place, therefore making it very difficult for claimants to raise concerns about their wellbeing. The Minister for Social Security and Income Support Officers must ensure that the wellbeing of claimants is considered during the repayment plan process.
In addition, no consideration is given to the wellbeing impact of the overpayments process on children. In order to minimise the impact on children, we recommend that the Minister reviews the overpayments processes to ensure that the wellbeing of children is considered at every stage.
As part of its evidence gathering process, the Panel approached The Salvation Army about this matter who commented:
"The repaying of debts from overpayment of income support benefit is a significant cause of financial hardship amongst Jersey residents. Repaying these debts is one of the most common causes of people needing to access foodbanks."
The Panel found that overpayments of Income Support benefits had a significant financial impact on those required to repay them. Many claimants repaying an overpayment are facing significant financial hardship, and as a consequence some individuals are in rental arrears, choosing between eating and buying medication, or accessing food banks.
One of the most troubling findings for the Panel during the undertaking of this review was the extent to which overpayments had impacted some individual’s wellbeing and mental health. Out of the five Private Hearings it held with members of the public, three individuals told the Panel that they had either tried to commit suicide or had experienced suicidal thoughts due to the stress caused by being in debt to Customer and Local Services (CLS).
During a Public Hearing in July, the Panel inquired if the Minister for Social Security was aware of the significant impact this issue was having on the wellbeing of individuals. The Minister told us:
“If people come to talk to us, we will talk with them about it. We do not know what their level of debt is, a lot of the debts are relatively small amounts."
She went on to explain the Department’s endeavour to set repayments at a level that people could afford.
The Panel recommended that the Minister for Social Security must acknowledge the detrimental impact that an overpayment of Income Support benefit can have on an individual’s mental health and wellbeing.
From the evidence we received, we are aware that it can be difficult for claimants to prove when documents were handed in to Customer and Local Services, as the Department does not provide any confirmation that the documents were received. In addition, many others raised their concerns with the Panel regarding the seemingly unfair practice of compelling someone to repay an overpayment, which may have been accrued over a number of years unknowingly, due to an error made by CLS.
The Panel found that in the majority of cases where errors by the Department were cited as the cause of the overpayments, in both submissions and during the Private Hearings, no apology was provided by the Department. Considering the significant impact overpayments can have on an individuals’ wellbeing, the Panel was disappointed that these errors were not, at the very least, acknowledged and apologised for.
The Panel recommended that the Minister for Social Security should ensure that the communication that notifies a claimant about an overpayment, which has occurred as a result of departmental errors, includes an acknowledgement of error and apology. This should be considered during the Minister’s wider review of Customer and Local Services communications.
Additionally, the Panel made further recommendations that the Minister for Social Security should:
- Ensure that customers are provided with a copy of any documentation handed in to Customer and Local Services, which has been stamped with the date of receipt. This will provide both the claimants and Department with a greater understanding of the situation and minimise the risk of a dispute.
- Ensure that data relating to the reasons why overpayments occur is held on a central database to allow this information to be analysed and for targeted changes/improvements to processes to be implemented, where necessary.
Shortcomings in Processes and Policies
The Panel found that individuals are not always invited to discuss a repayment plan and, in some cases, changes of circumstances are taking a significant time to be processed by Customer and Local Services.
The Panel also found that the Department’s current IT system does not enable Officers to record the time taken to process each individual change of circumstance nor does it allow for the causes of extended processing times to be documented.
In relation to the appeal process for overpayments of Income Support, we found that there can be a high emotional cost associated with appealing a decision. Not only is this not always acknowledged by Customer and Local Services, but the process is not accessible for many vulnerable people in our society.
In response to an Oral Question in July this year, the Minister stated that:
“[Repayment] plans are negotiated and discussed with the adults of a household, and it is for them to agree with the Department a plan that they feel meets their needs."
However, the Panel found that when individuals try to discuss their financial struggles and vulnerability with CLS following an overpayment notification their concerns are not always listened to or acted upon.
To address this, the Panel recommended that the Minister for Social Security must undertake a review of the current guidelines that are used to determine a repayment amount and amend where necessary to ensure that repayments of overpayments of the Income Support benefit are not causing financial hardship and leaving individuals or families financially vulnerable.
Further, the Panel’s evidence found that individuals are not always contacted before receiving a letter when their debt is greater than £500 and, if individuals are contacted, open discussions regarding how much they can afford to pay are not always happening.
In response, it was recommended that the Minister for Social Security must make sure that every individual, whose repayment amount is £500 or greater, is contacted by Customer and Local Services and invited to a face-to-face meeting, where possible, to discuss a repayment plan that considers the household’s whole financial background to ensure that it is affordable and does not leave an individual or family facing financial hardship.
Additionally, the Panel made further recommendations that the Minister for Social Security:
- Must ensure that the new IT system for Customer and Local Services enables the capturing of processing times for each change of circumstance and the reasons for extended processing times. This will allow for an analysis to be undertaken, changes to be made where necessary and resources to be directed appropriately.
- Should ensure that any overpayments accrued after the date in which changes circumstances are submitted are not recovered.
- Should ensure, in advance of the new IT system being in place, that letters advising individuals of an overpayment and the option of an appeal are also sent via email to those who have access to an email account.
- Should undertake an urgent review, including meaningful engagement with marginalised and vulnerable groups, to ensure that the appeals process is accessible to everyone.
Communication Concerns
Whilst the Panel did receive encouraging feedback about communication with Income Support Officers, particularly regarding the support provided to vulnerable people via charities (during and post pandemic) it also received concerning feedback. Occasionally claimants are confronted by Income Support Officers who hold attitudes that ‘blame’ them for their individual situations.
In addition, it was discovered that individuals often speak to multiple Officers about their overpayment issues, having to repeat their stories time and time again. It was also found that in some cases differential treatment is given to claimants who attend meetings at CLS alone as opposed to when accompanied by a charity representative/support worker.
The Panel acknowledges that when undertaking a review of this nature it is more likely to receive negative feedback than positive and therefore, in this instance, the evidence received isn’t necessarily a reflection on the majority of staff who work within Income Support.
It is fair to say that most people would agree that the subject of overpayments of Income Support needs to be addressed understandingly and empathetically. Unfortunately, the Panel learnt during its review that this is not always the case.
The Salvation Army spoke about a lack of understanding amongst some Officers as to how difficult it can be for individuals to discuss Income Support related matters:
"It is our opinion that there is not enough understanding among Social Security staff and the Income Support process, of how stressful it can be for an individual to have any dealing with income support matters."
The Panel found that occasionally claimants are confronted by Income Support Officers who hold an attitude that ‘blames’ them for their individual situations and are left feeling disempowered, belittled, or simply not listened to.
As a result, the Panel recommended that the Minister for Social Security should undertake open conversations with charities and organisations who support individuals with overpayments to understand and help address any concerns regarding a lack of empathy among Income Support staff.
The Panel found that advice given by Income Support staff can vary from advisor to advisor for the same specific situation. Incorrect information by advisers can lead to increases in overpayment amounts and place individuals in greater vulnerable positions.
The Panel further found that some individuals dealing with an overpayment issue will speak to multiple Officers at CLS about their overpayment. Not only can this exacerbate the issue of inconsistent advice, but it can also be very challenging for those who find their circumstances difficult to discuss.
In light of its findings, the Panel has recommended that the Minister for Social Security must ensure that a client relationship model, where each Income Support caseload has a dedicated Income Support Officer or small group of Officers, is implemented at the earliest possible opportunity.
Further recommendations made by the Panel stated that the Minister for Social Security:
- Must look to introducing mandatory training on learning difficulties for all staff who are directly involved in Income Support processes.
- Should ensure that unconscious bias training is introduced and delivered to all customer facing staff within CLS.
- Must ensure that the current review of communications includes consideration of different methods of communication about overpayments and Income Support in general.
- Should engage with local disability charities whilst undertaking the communications project to ensure that any new or improved communication methods are inclusive, accessible, and easier to understand, and that adequate consideration has been given to the most vulnerable in our community.