Minister: 2095 People On Financial Assistance

September 30, 2023

“During 2022/23 the average number of persons on financial assistance was 2095 persons, compared to 2226 during the previous year,” Minister of Economy and Labour Jason Hayward said in the House of Assembly.

He said, “The categories from highest participants to lowest are: pensioners [1023], disabled [758], earnings low [162] and able-bodied unemployed [151].”

“The highest expenditures continued to be rent [$13.77m], nursing homes [$6.94m], food [$6.14m], and insurance [$5.96m]. Total expenditure in financial assistance payouts decreased by approximately $1.4 million in 2022/23 when compared with the previous year.

“Total expenditure for the Child Day Care Allowance programme decreased by 12 per cent in 2022/23 to total $1.17 million.”

As far as “fraud and investigations,” the Minister said, “At the end of the reporting period, there were 41 cases under investigation, with a total value of $328,000 as a result of the non-disclosure of facts, misrepresentation of facts, or wilful abuse of the Financial Assistance Programme and the Child Daycare Allowance Programme.

“From this total, 26 cases with a value of $290,000 were referred to the Attorney General Chambers for legal resolution, while 15 cases that totalled $3,000 remain under the remit of Financial Assistance Investigative Officers for repayment.”

The Minister’s full statement follows below:

Mr. Speaker and Honourable Members, I rise today to lay the 2022-2023 Annual Report of the Department of Financial Assistance in accordance with section 3[4] of the Financial Assistance Act 2001.

Mr. Speaker, the Annual Report highlights that were:

  1. Reduced numbers of persons on financial assistance;
  2. A reduction in overall financial pay-outs;
  3. Reduced numbers of legitimate client complaints from the prior year; and
  4. Reduced numbers of Review Board appeals from the prior year.

Mr. Speaker, the Report illustrates a five [5] year performance trend for the Department. It remains that the categories from highest participants to lowest are: pensioners [1023], disabled [758], earnings low [162] and able-bodied unemployed [151]. This has been the trend year on year.

During 2022/23 the average number of persons on financial assistance was two thousand and ninety- five [2095] persons, compared to two thousand, two hundred and twenty six [2226] during the previous year. This decrease was mainly due to a decrease in the number of eligible persons in the “able-bodied unemployed” and “earnings low” categories, as more persons secured employment opportunities post COVID-19.

Mr. Speaker, the highest expenditures continued to be rent [$13.77m], nursing homes [$6.94m], food [$6.14m], and insurance [$5.96m]. Total expenditure in financial assistance payouts decreased by approximately $1.4 million in 2022/23 when compared with the previous year.

Total expenditure for the Child Day Care Allowance programme decreased by 12 per cent in 2022/23 to total $1.17 million.

Mr. Speaker, in order to remain compliant with relevant laws and supporting policies, the Department of Financial Assistance continues to implement and manage key functions to enhance current business systems. These include:

Fraud and investigations – As at the end of the reporting period, there were 41 cases under investigation, with a total value of $328,000 as a result of the non-disclosure of facts, misrepresentation of facts, or wilful abuse of the Financial Assistance Programme and the Child Daycare Allowance Programme. From this total, twenty six [26] cases with a value of $290,000 were referred to the Attorney General Chambers for legal resolution, while fifteen [15] cases that totalled $3,000 remain under the remit of Financial Assistance Investigative Officers for repayment.

Compliance and Transaction Monitoring- A risk management framework was developed to ensure all actions and transactions are performed by all officers in compliance with department legislation. Additionally, 83,710 transactions were monitored and scrutinised on the Department of Financial Assistance System Software during the 2022/23 reporting period.

Mr. Speaker, Phase One of Financial Assistance Reform continued during this period. Amendments were drafted and approved for section 6A of the Financial Assistance Regulations 2004 to allow recipients who had reached their seven [7] year term to remain on the programme for life. However, such persons would only receive awards related to food, health insurance and room rate.

Further amendments to legislation in the fiscal year 2023-24 will provide increased allowances and benefits to both Department of Financial Assistance clients and Child Day Care Allowance. This is in keeping with the Ministry’s commitment to support those most vulnerable in maintaining a minimum standard of living.

Mr. Speaker, the Ministry would like to take this opportunity to thank the Department of Financial Assistance team as well as all other partners who collaborated to support the work that is being carried out.

The goal of this Ministry continues to be one that charts a new course by making financial assistance a more well-structured, effective, and efficient system that places emphasis on transforming those who have been determined to have a need.

Thank you, Mr Speaker.

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  1. Thatcher says:

    Able bodied unemployed in Bermuda? You’ve got to be kidding me. Unemployment as a choice. Cut their benefits now.