C.S. 166
XCC(77)65
CONFIDENTIAL #
機密
Copy No
of 80
Page 6 of 19
Long term reliance on public assistance
16
The public assistance scale rate is considered to provide adequate help for individuals and families who have to rely on it for income maintenance for relatively short periods. Over long periods, however, the position is not so satisfactory. There is no margin in the scale rates to provide for household replacements and similar expenditure which has to be faced over a long period of time, and for which at present discretionary grants may have to be made. Such needs do not really arise over short periods, because the family can reasonably be expected to manage on its resources built up over a period of higher income when, for example, a family member is in work.
17
To meet more effectively the needs of families reliant on public assistance for a long period and to reduce need for discretionary grants, it is proposed that there should be a supplementary allowance added to the basic monthly scale of allowances. The allowance would be called a long term supplement. The long term supplement would be payable to a family or single person who had been receiving public assistance for more than 18 months. The amount payable to a family would be equal to the amount of the scale allowance for a single person (currently $180 a month); and half that amount for a single person. It might appear to be more logical for the amount of the long term supple- ment to vary with the size of the family. But this is not proposed: partly for simplicity but more because household costs like replacement of household goods (as opposed to everyday living costs) do not vary so much. as between different sizes of families and because larger sums would probably bring the amount of assistance payable to a family too close to wage rates. The fact that a long term supplement was being paid would not rule out discretionary grants for non-household needs like special diets but it would reduce, if not largely eliminate, the number of discre- tionary grants to meet household needs.
rebn
More encouragement to self-help
18
Apart from one or two specified exceptions, all income is taken fully into account when assessing the need for public assistance, and no proposal is made to alter this general position. A system of disregarding differing amounts of different kinds of income (such as is found in the UK supplementary benefits scheme, which is the equivalent of the public assistance scheme), is complex to administer, difficult to understand and at odds with the principle of a means-tested scheme which is to provide a safety net of income maintenance. On the other hand, the public assistance scheme provides very little incentive to self-help. Any additional earnings are taken into account in full; in effect, a marginal tax rate of 100%. There is a good case for providing a limited and simple easement to encourage those who are not expected to register with the Employment Service as a condition of receiving assistance to undertake
CONFIDENTIAL
機密
No comments yet.
Private notes are available after approval.