Minister: New Financial Assistance Policies

March 31, 2011

[Updated]This morning [Mar.31] Minister of Youth, Families, Sports and Community Development Glenn Blakeney announced new regulatory and procedural changes to programmes administered by the Department of Financial Assistance.

A new Non-Cash Grocery Card will launch tomorrow [Apr.1] Each card will be activated monthly with the approved food allowance for the person or household, and it can be used similiar to a debit card. Beginning 1st May 2011 recipients will be able use it at all MarketPlace grocery stores as well as the PriceRite store.

In addition, as the Department’s budget for the Child Day Care Allowance Programme has been reduced from $3,840,000 to $2,500,000, the income threshold has been reduced from $70,000 to $50,000 as the new eligibility requirement.

Audio of Minister Blakeney’s statement is below:

Other new policies include:

  • The Department will now only pay one month’s arrears for all expenditure items.
  • Residency requirement of one year before a returning Bermudian can apply for assistance.
  • If a person resigns or is terminated from employment as a result of their action, there is a three month waiting period for payment of financial assistance.
  • Property owners are no longer eligible to apply for assistance.
  • A person, who transfers, sells or conveys property cannot apply for financial assistance for 5 years

Minister Blakeney’s full statement follows below:

Good Morning,

As the Minister responsible for Financial Assistance, I am cognizant of the continued need for financial assistance in our community.

Today, I wish to outline certain regulatory and procedural changes to programmes that are administered by the Department of Financial Assistance, which has seen an influx of applicants in need of assistance over the last several years.

During the upcoming fiscal year 2011-2012, the Department has been challenged with a reduced overall budget, which I referred to a few weeks ago during a previous press conference. As a consequence, we have had to make legislative changes in order to achieve cost savings while still remaining on task and in line with our mandate to provide Bermuda residents with basic financial assistance. We are, in essence, endeavouring to do more with less.

The Department of Financial Assistance encompasses two Programmes, the Child Day Care Allowance Programme, and the Financial Assistance Programme.

Child Day Care Allowance Programme

Over the last two years, the Child Day Care Allowance Programme has assisted over 1250 parents with the cost of day care; however, due to budgetary constraints noted in the Budget Speech 2011-2012, the Department’s budget for this Programme has been reduced from $3,840,000 to $2,500,000.

In order to adhere to financial constraints, the Child Day Care Allowance Regulations 2008 have been amended to allow the maximum gross annual income to be re-established, and effective the 1st April, 2011 we have reduced the income threshold from $70,000 to $50,000 as the new eligibility requirement for the Child Day Care Allowance Programme.
Financial Assistance Programme

Likewise, we have taken a closer look at the Financial Assistance Programme, and have made amendments to the Financial Assistance Regulations 2004.

These amendments include:

  • Restructuring of the Schedule – Table of Allowable Expenses
  • A significant change here is that the Department will now only pay one month’s arrears for all expenditure items. This will be a great cost saving to Government, and it will encourage clients to be more timely and responsible in their request for assistance.
  • Deletion of several items, including: mortgage interest/arrears; property insurance; personal/household and comfort allowance.
  • Requirements before an award may commence has been enhanced by including:
  • a new residency requirement of one year before a returning Bermudian can apply for assistance.
  • also, if a person resigns or is terminated from employment as a result of their action, payment of an award of financial assistance shall not commence until three (3) months after the date of termination.
  • Seniors will continue to be able to retain $5,000 in investments/assets, while all others will be able to retain $500.
  • All income for all clients, over $500, will be calculated in the assessment for a financial award.
  • Property is considered an asset; therefore, anyone who owns property is no longer eligible to apply for assistance. Alternatives and options will be recommended to property/homeowners.
  • A person, who transfers, sells or conveys property to any person or entity, cannot apply for financial assistance within a five year period of time following such transaction.

The request for information to make an adequate assessment of needs is now clearly spelling out and including medical, dental or other healthcare practitioners or treatment facility providers; information from these professionals will greatly assist in evaluating the need for on-going assistance.

The Department of Financial Assistance is embracing the phrase Workfare NOT Welfare, and will endeavor to work in tandem with the Department of Labour and Training to encourage all able-bodied clients to seek training and employment.

All of these measures will continue to ensure that Bermuda’s neediest residents will be in receipt of assistance, if they are eligible and meet the requirements.

Non-Cash Grocery Card

I am very pleased to announce that, as we look to further increase the integrity and self esteem of our clients, the Department of Financial Assistance has fostered a partnership with the MarketPlace and will launch a new Non-Cash Grocery Card tomorrow, 1st April 2011.

No longer will the clients of the Department have to make a monthly trek into the Office in order to collect their monthly paper food vouchers. Beginning tomorrow, clients will be given a Non-Cash Grocery Card, which they will keep in their possession. Each card will be activated monthly with the approved food allowance for the person or household. For the month of April 2011, each client will be able to use the card at the Shopping Centre as part of a pilot run; the client simply draws down on the card as if it were a debit card. Use of the card will still require valid photo identification at the checkout.

Why MarketPlace you might ask? MarketPlace has been the only food chain that has been interacting and assisting the clients of the Department of Financial Assistance on a consistent basis from the very beginning. Our partnership has grown and continues to grow as we venture out with this new initiative.

For years, the clients of the Department have had to shop at only one store, Shopping Centre. We felt that this greatly disadvantaged persons who lived at the extremities of the island. Now, with the use of the Non-Cash Grocery Card, financial assistance clients, beginning 1st May 2011 will be able to shop at all MarketPlace grocery stores island-wide as well as the PriceRite store for bulk purchases.

Here with us today is Mr. Scott Carswell, President of the Marketplace, and I wish to publicly acknowledge and thank the MarketPlace for their continued partnership in working with the Department of Financial Assistance and its clients.

Thank You.

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Comments (24)

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  1. Technical Difficulties At Financial Assistance | Bernews.com | January 3, 2013
  1. poor person says:

    I’m confused as to what the income threshhold is for the food assistance policy. Can anyone shed any light?

  2. The truth shall set you free says:

    hell, with the grocery store prices, WE ALL need that one!

  3. Reality says:

    And of course, the Shopping Center is more expensive than the other Marketplace stores. Also, now the recipient has to take a cab to a Marketplace store and then back home when Lindo’s or Whites is closer. And further more, does Marketplace scan their goods like Lindos does? Scanning prevents the person on financial aid from buying steak and crab legs and then liquor to was it down. Certain items can be restricted to make sure the peoples money is spent correctly…….oh never mind, PLP doesnt care about how the money is spent.

    • My two cents says:

      Surely you jest. I can’t possibly believe that one could buy alcohol with financial assistance? Please tell me I am correct….

      • Summarized says:

        Until now persons were receiving a check. I have a family member, homeless and drug addicted. He collects a monthly Govt check which he cashes and buys liquor. I actually argued with his mother about the fact that I work – 2 jobs, and he gets to take my tax-payer money and refuses to work but can afford to buy liquor and drugs to support his habit. SMH. The system sucks!

        • common sense says:

          “It’s always the PLP’s fault, what ever they do it is considered a failure, they haven’t done anything successful since 1998″. When will we get tired of singing this song and come together as one. My Guess is any other party can govern Bermuda correctly besides the PLP. Well guess what the PLP is here to stay, like it or not, our people are the majority, and our vote counts, so stop bickering and lets come together. SMH and LOL

          It’s the UBP’s fault

          • Tired of nonsense says:

            Any particular reason you wouldn’t support another party? I mean besides the whole skin color thing that you guys are obsessed with so much?

          • Local says:

            Hence why we are in record levels of astronomical debt. We have the highest murder and crime rates in our history, record levels of unemployment, a non-existent tourism industry, cost overruns in almost every government managed project or ministry. An over-sized and extremely inefficient civil service. The cost of living is so inflated and out of whack to where it should be. Education system is poor and full of anti-social young people, who are product of the PLP’s voting base.

            Job well done since 1998. That’s what you get when a bunch of people who have no idea or expertise try and run a country.

            • Amen! says:

              AMEN AMEN AMEN!

              • Jim Garlic says:

                Say Amen all you like , I’d prefer to have ah stiff drink;care to join me anyone?? Better yet let me bury my head in the sand and pretend that we are not in such an awful state of affairs.Anyway I go the end result is the same;One hellava banging headache..

                • LOL (original) says:

                  “anti-social young people, who are product of the PLP’s voting base.”

                  PLP all the way PLP all the way…………………to the bankrup house we go…………

                  LOL

        • My two cents says:

          I can’t believe that our taxpayer money pays for an individual’s alcohol, cigs etc. There should be certain foods that are NOT ALLOWED to be bought with financial assistance. I just can’t believe it. This would be an easy fix.

  4. jah says:

    Gov should dramatically cut the tax on food, fuel and electricity. Oh wait they need that revenue to keep them in employment and to manage the massive debt after years of overspending. 2+2=3

  5. Electricity says:

    No mention of reductions in payments for electricity…

    Funds should be used to reduce one’s electricity bills through small investments in efficient products, not to subsidize wasteful usage.

    Tough mandate for this Dept.; hard to not refer to it as welfare.

  6. Not Suprised says:

    Did i read correctly???? People who owned property all this time have been receiving financial assistance??? WHAT!?!? Are you kidding me?!? No Wonder, Bermuda is being bled dry. If you own a house YOU SHOULD NOT BE RECEIVING financial assistance! Good lord Those of us struggling to pay rent and bills that do not receive financial assitance have been duped!

    • Observer says:

      I had this exact same thought when I read it too. Now it all makes sense. SMH

    • Bold Enough says:

      yeah it definitely a shame…i almost fell out my seat when I read that myself. SMDH They just don’t care…

  7. Not a home owner says:

    I have to say this – I think that cutting people who own homes out of financial assistance is a bad thing. There seems to be a perception that because you own a home, you must be rich – but that is not always the case. Do you remember when both the big banks offered 100% financing? People were able to buy their first home with nothing down. Now, that may not have been a good thing in some cases, but if we’re constantly urging people to “own a piece of the rock”, why are you going to penalize them when they do?

    Many of the families who are hurting the most are those who are in danger of losing their home due to a job loss. If you are renting and you lose your job, you can always move into a cheaper place until things get better, or maybe stay with a friend or relative. But if you lose your job and you have a mortgage, and no one can help you…what do you do, walk away from your home??

    To those who think that you should not receive assistance if you own a home…what about the new homes at Southside that Gov opened last month? Government (the taxpayer) basically helped those people buy a home for $199,000. Those places are worth more than that, someone had to pay the difference. It was a subsidized project. If government should not be in the business of helping homeowners, then it should not be in the business of helping people buy homes either.

    • L2Editor today says:

      “It is only in a Communist society that the Government would ignore this capitalistic principle by bailing out both the incompetent and the wealthy, while ignoring the pain of those who have suffered a major loss through corruption and fraudulent promises.”

    • Really says:

      It is sad that anyone was duped into believing 100% financing was even close to a good idea. If it sounds too good to be true, it probably is…

  8. Ring Master says:

    Well the promises of “free” made in 2007 by this 12 year old PLP Government, which included Paula Cox as the Minister of Finance are coming home. Paula Cox could have stopped this but admitted she was just a cog in the wheel. Now she is Premier and still Minister of Finance she needs to prove she has answers.

    • LOL (original) says:

      But they said it was frrreeee. Is it not funny how they are now using the UBP means tested scale seems to me that the PLP are even more restrictive. Oh well as long as the other guys aren’t robbing me…………………………..

      LOL

  9. bda for life says:

    This govt is a disgrace to all bermudians!!!! Do not come to my house looking for my vote.I am sick and tired of the PLP wanting us to make sacrifices while they waste taxpayers money…everybody has to cut back but the Paula Cox govt!!! WTF IS REALLY GOING ON?????