Lawmakers have approved a new Financial Assistance Act to replace the six-decade-old Poor Persons (Relief) Act, which Social Development Minister André Ebanks has described as inadequate and “hopelessly out of date”.
Ebanks, who presented the bill to Parliament, where it was passed by government members on Monday, said it will herald in a more modern approach to social assistance for Cayman’s most vulnerable citizens.
He pointed out that in its 58 years of existence, the only amendment – a slight one – made to the Poor Persons Relief Act had been done 25 years ago. He added that the law currently does not adequately meet the needs of older individuals, people with disabilities, and families requiring financial assistance.
The existing law, and Cayman’s financial assistance systems, came under fire in a report by the Office of the Auditor General in May 2015. The audit report found that there was no overall strategy, coordination or accountability for how $50 million in financial assistance was spent annually.
Ebanks told the House, “When one reads that report, it should send a shiver through you concerning the state of our social safety net,” adding that the financial challenges seen in 2015 had increased in recent years, because of COVID, rising inflation and supply chain issues because of the war in Ukraine, and “the insubstantial social safety net would be under now even more enormous pressure pushed to a precariously feeble point.”
He noted that the 2015 audit report outlined 12 recommendations to strengthen the social assistance network – five of which are included in the new law.
Ebanks said the “landmark” legislation would create a modern and fit-for-purpose financial assistance system, which would be more transparent and accountable, and create avenues for appeals and legal recourse.
What will change?
Under the new legislation, the Needs Assessment Unit will be renamed as the Department of Financial Assistance.
The legislation also clearly outlines and defines, for the first time, who is eligible for government’s financial assistance, namely: Caymanians, spouses of a Caymanian or guardians of a Caymanian dependent, all of whom must be resident on island during the time of the application and at least eight of the 12 months preceding the application.
It will allow the introduction of conditions that can be attached to financial assistance, in particular for households with adult members who are able to work.
A new appeals tribunal will be set up under which decisions by the Department of Financial Assistance can be challenged, and grievances aired.
There will also be additional protections for personal information.
Ebanks said a revamp of the services and processes of the Department of Children and Family Services would also be undertaken.
According to a statement issued by the Ministry of Social Development, the bill will commence in the first quarter of next year, following the establishment of the new Department of Financial Assistance.
Accompanying regulations
The statement noted that the bill enables Cabinet to create accompanying regulations to govern the procedures of the Appeals Tribunal.
Regulations will also be drawn up to govern operational and practical matters, including the number of working days in which the department will process applications; exemptions for emergency circumstances; and consideration for transitional services, for example, during the period after a person on government assistance becomes employed.
The regulations will also include provisions regarding household sizes and composition – such as older people living with their adult children, or people with disabilities.
In the statement, Parliamentary Secretary for Social Development Heather Bodden, said, “This long overdue bill will bring comfort to anyone who has had an issue obtaining government’s financial assistance. It defines eligibility for the first time in law, builds in good governance, and creates transparency in the process.”
She noted that, currently, there is no legislation underpinning the Needs Assessment Unit – a state of affairs she said was “unacceptable” for an agency that administers the allocation of up to $14 million a year in financial assistance.
In his comments to the House on the bill, Deputy Governor Franz Manderson said the bill had the “potential to break the cycle of multi-generational reliance on government’s financial assistance, giving the ability to attach conditions to financial assistance that will enable people to obtain skills and employment”.
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