Showing posts with label welfare payments. Show all posts
Showing posts with label welfare payments. Show all posts

Monday 24 December 2018

How the Turnbull & Morrison Coalition Governments suspended legal principle and stooped to extortion in order to pursue vulnerable welfare recipients


In July 2016 the Department of Human Services (DHS) - Centrelink launched a new online compliance intervention (OCI) system for raising and recovering debts.

Its aim was to raise up to $1 billion dollars allegedly owed by welfare recipients.

This compliance intervention became known colloquially as robo-debt.

Current Australian Prime Minister and Liberal MP for Cook Scott Morrison was federal treasurer for the first two years of the ongoing robo-debt scheme.

During this time the suicide of welfare recipients being pursued for so-called debt recovery began to be reported.

Since 2016 only a small number of welfare recipients have brought their robo-debts before the Administrative Appeals Tribunal for adjudication. It has reportedly set aside 34 per cent of these robo-debts (or one in every three) and varied another 2,4 per cent.

Most welfare recipients don't have the resources to fight these alleged debts.

The Guardian, 18 December 2018:

Centrelink’s “robo-debt” system is a form of illegal extortion allowed by failings across a “plethora” of democratic and legal institutions, according to a former member of the administrative appeals tribunal.

Prof Terry Carney, a long-serving member of the AAT, has penned an extraordinary attack on the institutional failings that allowed the robo-debt program.

It’s the second time Carney, who helped oversee the writing of Australia’s social security laws, has used academic journals to condemn the system as illegal this year.

Carney’s last paper said robo-debt involved the enforcement of “illegal” debts that in some cases were inflated or nonexistent, an allegation that was forcefully rejected by the Department of Human Services. Hank Jongen, the department’s spokesman, said at the time that the department “strongly refutes any claims that it has conducted its compliance activities in a manner which is inconsistent with the legislation”.

This time, Carney used a piece in the Alternative Law Journal to map out the numerous shortcomings that allowed the system to come into being and operate for 18 months without challenge.

 “The pivot for this article is not so much that Centrelink lacks legal authority for raising virtually all debts based on a robo-debt ‘reverse onus’ methodology rather than use its own information gathering powers – for this remains essentially uncontested,” he wrote. “Rather it is extraordinary that this went unpublicised and uncorrected for over two years.”

Centrelink has long used a system of automated data-matching to detect discrepancies in income reported by welfare recipients, to detect and claw back overpayments. But it introduced significant changes from July 2016, reducing human oversight and expanding the system considerably in a bid to recover more debts and improve the budget. The new system effectively shifted the onus onto the welfare recipient to prove they owed no debt to the government.

The system spat out letters to individual welfare recipients as soon a discrepancy was detected in their reported income to Centrelink and records held by other agencies, like the tax office.

A flawed process was used to calculate their debt if they did not respond or could not produce evidence of their previous pay, which involved averaging out their yearly income across all 26 of Centrelink’s fortnightly reporting periods. The process often led to the false assumption that a welfare recipient had worked across an entire year and was ineligible for social security, thereby creating a debt.

Carney argues the rushed design of what he described as a “machine-learning budget ‘savings measure’” trumped good design standards. He says inquiries by the auditor general and the commonwealth ombudsman into the system had failed to consider whether it was raising debts on a lawful basis.

Carney also argues that Centrelink, by pursuing debts raised through the controversial “income averaging” technique, has failed to adhere to ethical administration. He says Centrelink has continued to use this method, despite knowing AAT rulings that it is invalid…….

The privacy safeguards in the first tier of the AAT mean that most legal challenges against welfare debts are not publicised, he writes. That means that “rulings overturning Centrelink reasoning remain hidden from the public”…..

TERRY CARNEY AO, Emeritus Professor, University of Sydney, Centre for Health Governance, Law and Ethics, 2018:

* University of New South Wales Law Journal, Vulnerability: False Hope For Vulnerable Social Security Clients?

Thursday 13 December 2018

Centrelink's 'robodebt' headed to the Australian Federal Court?



9 News, 10 December 2018:

Centrelink’s robo-debt recovery scheme was intended to seek out and destroy debts, but instead it’s thrown more than 200,000 Australians into financial turmoil.

Now, Victoria’s former head prosecutor, QC Gavin Silbert, is lending his voice and fighting back against the controversial system which aims to claw back up to $4.5 billion in welfare overpayments.

“I think it’s illegal and I think it’s scandalous. In any other situation, you’d call it theft. I think they’re bullying very vulnerable people,” Mr Silbert told A Current Affair. 

“If debts are owed to the public purse they should be paid, they should be pursued. These are not such debts,” he said.

He’s teamed up with Melbourne-based solicitor Jeremy King to take a pro bono case to the Federal Court which, if successful, could derail the robo-debt scheme and see thousands of debts wiped.

“I hope this would set a precedent to show that the way this robo-debt scheme had been rolled out is not in accordance with the law and all of the other debts that have been sent out to people are not in accordance with the law,” Mr King said....

The Sydney Morning Herald, 2 December 2018:

Gavin Silbert, QC, who retired as the state's chief crown prosecutor in March, has accused the Department of Human Services of ignoring its legal obligations and acting like a bully towards some of the nation's most vulnerable people.

A potential legal challenge could have significant implications for future enforcement of the robo-debt program, which aims to claw back up to $4.5 billion in welfare overpayments with more than 1.5 million "compliance interventions".

Mr Silbert became embroiled in the dispute when someone he knew was issued with a demand to repay a debt of $10,230.97, which the department claimed was overpaid by Centrelink between 2010 and 2013.

He has provided pro bono advice and helped prepare correspondence to the department, which repeatedly asked for an explanation on how the debt was calculated.

However, the department's compliance branch has ignored nine letters between May and November 2018 that requested additional information. Last week, it made threats to impose interest charges on the original debt.

"Other than the bald assertion that I have a debt, I have never received any details of how the debt is alleged to have arisen or anything which would enable me to verify or understand the demand made of me," Mr Silbert's client wrote on June 7.

In another letter, Mr Silbert's client wrote: "There is not a court in the country that will uphold your demands for interest in the absence of fundamental details of how the amount is alleged to have arisen."

The dispute escalated further when the department engaged debt collection agency Dun & Bradstreet, which threatened Mr Silbert's client with a "departure prohibition order" that would prevent him travelling overseas.

Mr Silbert is keen to launch Federal Court action to test the legal basis of the robo-debt program and the government's apparent unwillingness to provide particulars.
"I'm itching to get this before a court," he told Fairfax Media.

He said legislation that regulates data-matching technology requires the department to "give particulars of the information and the proposed action" before it can recover overpayments.

The robo-debt program, introduced by the Coalition government, calculates a former welfare recipient's debt by taking a fortnightly average rather than discovering the exact amount that was claimed.

The department was forced to concede it was no longer in possession of the original claims made to Centrelink by Mr Silbert's friend, after he made requests under freedom-of-information laws.

Monday 19 November 2018

Will a minority Morrison Government be forced to raise Newstart & Youth Allowances?


Depending on where you live in New South Wales the unemployment rate in September 2018 ranged from 2% to 9%, while youth unemployment went from 4% to 24%.

At the same time employment growth was -3% to barely 10%.

Which means that in September there were est. 195,300 job seekers on Centrelink's books in NSW and only est. 82,400 job vacancies available.

Centrelink Newstart Allowance for a single jobseeker is currently $275.10 per week and Youth Allowance is $222.90 per week for a single jobseeker under 21 years of age.

The million dollar question many people struggling on meagre unemployment benefits in rural and regional NSW will be asking themselves is whether Adam Bandt, Cathy McGowan, Kerryn Phelps, Andrew Wilkie, Rebekha Sharkie, and Bob Katter will use the increased bargaining power which comes to the crossbench in a minority government to force the government's hand on this welfare payment issue. Or will they turn to water?

Here is where the crossbench stands now.....

The NewDaily, 16 November 2018:

Pressure is mounting on the Coalition government to raise the Newstart rate following unanimous lower house crossbench support for a $75 increase.

The Guardian, 16 November 2018:

The entire lower house crossbench has come out in favour of an increase to Newstart, prompting Australia’s peak body for the community services sector to accuse the major parties of being out of touch.

Bob Katter outlined his support for an increase to the unemployment benefit on Friday, saying it would help tackle malnutrition in Indigenous communities.

His statement follows Rebekha Sharkie calling for an increase earlier this week, while the new Wentworth MP Kerryn Phelps committed to raising the payment in a candidates’ survey during the byelection campaign.

Cassandra Goldie, the chief executive of the Australian Council of Social Service, said the “diverse crossbench’s unity on increasing Newstart confirms just how out of touch the major parties are on this issue”.

“When Adam Bandt, Cathy McGowan, Kerryn Phelps, Andrew Wilkie, Rebekha Sharkie, and Bob Katter all agree, it’s time to stop talking and act,” she said.

Katter said the payment was insufficient for those in regional Queensland, where the cost of finding a job was high.

“If you’re outside of Brisbane, it’s no car, no job,” he said.

Increasing the dole “would go a long way to enabling First Australians to buy fresh fruit and vegetables”.

“You’ve crucified us with the cost of food, you’ve crucified us with the cost of electricity,” he said. “We can’t possibly live on Newstart.”

The prime minister, Scott Morrison, has said the government had no plans to increase the payment – currently $275.10 a week – despite an improved budget position, saying “I don’t think you can all of a sudden go ‘oh, let’s make whoopee’”.

He said earlier this month that the government would be more inclined to increase the pension, which stands at $458.15 a week. The pension was increased during the Gillard government while Newstart was last raised in real terms in 1994.

Labor has not committed to lifting Newstart, but signalled it would use a “root and branch review” to argue for an increase.

Sunday 8 July 2018

Australia 2018: just when registered jobseekers thought it couldn’t get any worse



The Guardian, 2 July 2018:

All across the country unemployed Australians are today bracing themselves for more stress and suffering, as the Coalition unleashes its new needlessly cruel benefit sanctions regime.

Starting 1 July, the Turnbull government is granting job agencies new, unprecedented powers to punish Newstart recipients for failing to comply with gruelling compliance demands.

Under this new “demerit point” system, agencies will now impose payment suspensions if (they believe) jobseekers are behaving inappropriately, or failing to attend appointments and activities like Work for the Dole without a“reasonable excuse”.

 Alarmingly, jobseekers currently battling drug or alcohol related illnesses are now no longer (“reasonably”) exempt from activities, nor safe from financial punishment.
Until 1 July 2018, Centrelink has been able to overturn any job agency penalties if it deems that they’re unfair or will lead to “extreme poverty”. It will lose much of this power. Now, job agencies will be able to punish their unemployed clients without government regulation or oversight.

Unemployed workers will also lose significant powers of appeal. They will have to passively accept many of the decisions ordered against them. In short, privately owned job agencies – many of which are for-profit private companies – will wield unlimited, unchecked power over the unemployed.

Under this system, unemployed workers can be completely cut off Newstart if they refuse to attend unsafe work for the dole activities. Even though 64% of sites are failing to meet basic safety standards, jobseekers will be forced to accept any dangerous, hostile conditions they’re met with.

Given that government funding to job agencies is tied to outcomes, such as placing participants into work for the dole, there is little incentive for job agencies to treat unemployed workers fairly. On the contrary – there are significant financial incentives to abuse unemployed workers. 

Already this abuse has reached crisis proportions.

In 2015-16, job agencies imposed a record 2m financial penalties on the unemployed.

As noted by the National Welfare Rights Network, roughly half of these penalties were found to be unfair and were rejected by Centrelink. This means that in 2015-16, more than 1 million unemployed people had their payments cut off when they did nothing wrong.

This kind of error rate is staggering – in any other sector, it would surely result in a royal commission. Earlier this year, a suspected 5% error rate at the Australian Tax Office resulted in an immediate government investigation.

Clearly, a culture of lawlessness and unaccountability already pervades the employment services sector. Under the new “demerit point’”scheme, this $10bn industry will enjoy even more freedom to run riot. The 800,000 unemployed workers attending job agencies will be left to fend for themselves.....

The author of this article is Jeremy Poxon, media officer for the Australian Unemployed Workers Union. 

Saturday 19 May 2018

Tweets of the Week




Sunday 13 May 2018

Growing older in Australia is becoming fraught with financial risk



The Guardian, 4 May 2018:

Half of the 51,300 older Australians affected by an increase in the age pension age would move on to Newstart or the disability support pension in the first year alone, new figures suggest.

The Coalition has long proposed increasing the age pension age from 67 to 70, kicking in from 2025-26. The change is likely to make Australia’s pension age the highest in the developed world.

Government estimates show the move would affect 51,300 people in the first year alone, according to a response to questions asked in Senate estimates.

The government also predicts 12,934 people would move from the age pension to the disability support pension and 12,825 to the Newstart Allowance unemployment payment.

The changes have not yet been legislated, but the pension changes remain Coalition policy after being first proposed in 2014.

They would follow Labor’s increase of the pension age from 65 to 67 when it was last in government – a change that is being gradually implemented from July 2017 until July 2023.

The opposition has pledged to fight any further increase to the pension age.

The shadow social services minister, Jenny Macklin, said the data showed increasing the pension age would not necessarily keep older Australians in work, as the government intends.

 “Many Australians won’t be able to work for longer like Mr Turnbull wants them to. Instead they’ll just be forced to live on Newstart or the DSP,” Macklin said.

“Labor understands how hard it is for older Australians to find work, particularly when their job has taken a toll on their body and where there is age-based discrimination in the workforce.”

Tuesday 1 May 2018

One doesn't have to look very hard to see where Turnbull & Co's budgetary spending money is coming from


Australian Treasurer Scott Morrison is waxing lyrical about the state of government finances ahead of next week's 2017-18 Budget announcements. 

Tax cuts for low and middle income earners, company tax cuts, increased infrastructure spending and no increase in the Medicare Levy - all on the back of increased taxation revenue.

But that is not quite the whole truth. The Abbott and Turnbull governments have been steadily reducing the safety-net income and living conditions of welfare recipients for years in order to increase the budget bottom line.

It has been reported Scott Morrison has found over $8 billion in savings in the forthcoming Budget and one can guess where a significant portion of those 'savings' have been found given past history.

A walk down memory lane.......

Exhibit One


The 2014­–15 Budget proposes to change indexation arrangements for the Age Pension, veterans’ pensions, Carer Payment, Disability Support Pension and Parenting Payment (Single) so that payment rates are only adjusted by movements in the Consumer Price Index (CPI). The measure will save $449.0 million over five years…

The budget savings from this measure arise from lower growth in the rate of payment provided to pensioners. Effectively, pensioners will receive a lower payment over time than they would have had the indexation method not been changed. Lower payments also affect the impact of the pension means test with less people likely to qualify for a payment under the income and assets test over time…

The Government estimates that $1.5 billion will be saved over four years through a freeze on the income and asset test threshold for all Australian Government payments. The thresholds for Family Tax Benefit, Child Care Benefit, Child Care Rebate, Newstart Allowance, Parenting Payment (Single and Partnered) and Youth Allowance will not be subject to annual CPI indexation for three years from 1 July 2014…

A further change to the pension means test, lowering the deeming thresholds, will accrue minor savings of $32.7 million for one year of operation (in 2017–18) but significant savings in the years beyond the forward estimates.....

Exhibit Two

The Australian, 5 December 2016:

The Turnbull government is ramping up efforts to claw back $4 billion believed to have been ­incorrectly paid to welfare recipients, issuing debt notices worth $4.5 million every day in a bid to rein in the ballooning welfare bill.

The Australian has learned a new automated system that matches a welfare recipient’s ­details with information from the Australian Taxation Office is generating 20,000 “compliance interventions” a week, up from 20,000 a year before the crackdown came into effect in July.

Human Services Minister Alan Tudge said the new system, which is expected to generate 1.7 million compliance notices to welfare recipients over the next three years, was helping to meet the government’s debt recovery targets.
“Our aim is to ensure that ­people get what they are entitled to — no more and no less. And to crack down hard when people ­deliberately defraud the system,” he told The Australian…..

In the 2015-16 budget and midyear budget update, the government estimated $4bn in welfare benefit overpayments were likely between 2010 and 2018. Budget papers forecast that the government will achieve savings of $1.7bn over five years through debt recovery….

In March 2015 the Reserve Bank cut its cash rate and cut it twice more by December 2016 and the big banks had followed suit. However, the Turnbull Government cut deeming rates for pensioners once only. The base deeming rate continues to date at 1.75% while CBA pensioner security account interest ranges from 0.50% to 1.10% for a good many age pensioners - giving the government a sly and petty saving over time.

Exhibit Three

In 2017 the waiting period for new claimants of New Start AllowanceYouth Allowance and Special Benefit was increased to a minimum of four weeks for those aged under 25 years and Youth Allowance age eligibility restricted in a  federal government omnibus bill.

This bill also applied further eligibility restrictions to Family Tax Benefit payments, removed the pensioner education supplement,  the annual education entry payment assisting with education expenses for eligible recipients, and and the requirement for employers to provide Government-funded parental leave pay to their eligible long-term employees and other measures. 

Total savings were est. $2.37 billion over six years.

The Department of Social Services has confirmed about 86,600 part-rate age pensioners had their pension cancelled as a result of the assets test changes that came into effect on January 1, 2017

Exhibit Four

In the 2016-17 financial year previous changes to the Disability Support Pension resulted in est. $1.5 billion in government savings. Further savings are expected in projections out to 2027-28.

The Guardian, 27 April 2018:

The federal government has created a “false economy” by restoring the budget bottom line through cuts to the disability support pension and potentially pushing more people into homelessness, a leading economist has said.

Speaking at a budget preview forum hosted by Industry Super Australia in Melbourne on Thursday, the Industry Super chief economist, Stephen Anthony, said the federal budget position had improved due to business receipts and cuts to personal benefit payments, particularly the disability support pension.

“The problem here of course is we’re seeing this spill out on to our streets in terms of homelessness,” Anthony said. “I’d say there’s a bit of a false economy occurring there and I’d ask the tax office to consider the models that they’re using and their reliability because the flipside of what they’re doing is causing a lot of social damage and social harm.”

The Turnbull government has tightened the eligibility criteria for the disability support pension, which the Australian Council of Social Services (Acoss) says resulted in a 63% drop in successful claims for the the pension between 2010 and 20116.

People who are not successful in claiming the disability support pension but are still unable to work have been pushed on to unemployment benefit Newstart, which pays $170 less per week…..

He said even a modest surplus was dependent on the government resisting the temptation to spend money in what is likely to be the last budget before the next federal election, saying “we don’t want to see tax cuts … we need tax reform, not necessarily tax cuts”.

The treasurer, Scott Morrison, this week announced he had scrapped a planned $8.2bn increase to the Medicare levy to fund the national disability insurance scheme, saying strong economic growth in the past 18 months meant it was no longer necessary.

The government has also telegraphed a personal income tax cut to address cost-of-living pressures in an environment of stagnant wage growth.

Anthony said the current budget parametres anticipate that annual wages growth will return to more than 3%, a projection that he said is unlikely to be met.

Thursday 12 April 2018

The only Australians who do not recognise the cruel farce that is 'robo-debt' are right-wing politicians, ideologues and the just plain ignorant


“It is trite maths that statistical averages (whether means or medians) tell nothing about the variability or otherwise of the underlying numbers from which averages are calculated. Only if those underlying numbers do not vary at all is it possible to extrapolate from the average a figure for any one of the component periods to which the average relates. Otherwise the true underlying pattern may be as diverse as the experience of Australia’s highly variable drought/flood pattern in the face of knowledge of ‘average’ yearly rainfall figures. Yet precisely such a mathematical fault lies at the heart of the introduction from July 2016 of the OCI machine-learning method for raising and recovering social security overpayment debts. This extrapolates Australian Taxation Office (‘ATO’) data matching information about the total amount and period over which employment income was earned, and applies that average to each and every separate fortnightly rate calculation period for working-age payments.”  [Terry Carney AO, UNSW Law Journal, Vol 42 No 2, THE NEW DIGITAL FUTURE FOR WELFARE: DEBTS WITHOUT LEGAL PROOFS OR MORAL AUTHORITY?, p2]

The Canberra Times, 5 April 2018:

The Coalition government's "robo-debt" program has been unlawfully raising debts with welfare recipients, wreaking "legal and moral injustice", a former administrative appeals tribunal member has said.

Emeritus professor of law at the University of Sydney Terry Carney, who was on the Administrative Appeals Tribunal for 40 years and was its longest serving member until finishing in September, has weighed into the debate over the controversial debt collection method saying the Department of Human Services has no legal basis to raise debts when a client fails to ‘disprove’ they owe money.

While Professor Carney urged it be made to comply with the law, the DHS rejected his comments, saying its Online Compliance Intervention program was consistent with legislation.

"Robo-debt" - the subject of a Commonwealth Ombudsman report and a Senate inquiry recommending sweeping reforms to the program - was at the centre of a maelstrom of controversy last year and remains loathed by critics calling for change….

Writing in the UNSW Law Journal last month, he said that despite the DHS' stance it remained responsible for calculating debts based on actual earnings, not assumed averages.

“Centrelink’s OCI radically changed the way overpayment debts are raised  by purporting to absolve Centrelink from its legal obligation to obtain sufficient information to found a debt in the event that its ‘first instance’ contact with the recipient is unable to unearth information about actual fortnightly earnings. As noted by the Ombudsman, the major change was that Centrelink would ‘no longer’ exercise its statutory powers to obtain wage records and that the ‘responsibility’ to obtain such information now lies with applicants seeking to challenge a debt. Writing a little later, the Senate Community Affairs References Committee challenged this, contending that
6.13 It is a basic legal principle that in order to claim a debt, a debt must be proven to be owed. The onus of proving a debt must remain with the department. This would include verifying income data in order to calculate a debt. Where appropriate, verification can be done with the assistance of income support payment recipients, but the final responsibility must lie with the department. This would also preclude the practice of averaging income data to manufacture a fortnightly income for the purposes of retrospectively calculating a debt. …”  [Terry Carney AO, UNSW Law Journal, Vol 42 No 2, THE NEW DIGITAL FUTURE FOR WELFARE: DEBTS WITHOUT LEGAL PROOFS OR MORAL AUTHORITY?, pp3-4]

Tuesday 6 March 2018

Is Australian welfare reform in 2018 a step back into a dark past?


Last year saw the completion of the Royal Commission into Institutional Responses to Child Sexual Abuse which revealed generational abuse within the Australian education and child welfare systems. 

That year also revealed the ongoing failure of the Dept. of Human Services and Centrelink to fix its faulty national debt collection scheme, which possibly led to the deaths of up to eleven welfare recipients after they were issued debt advice letters.

The first quarter of 2018 brought a scathing United Nations report on Australia's contemporary human rights record titled Report of the Special Rapporteur on the situation of human rights defenders on his mission to Australia.

Along with a report into elder abuse in Oakden Older Persons Mental Health Service in South Australia and the release of a detailed Human Rights Watch investigation of 14 prisons in Western Australia and Queensland which revealed the neglect and physical/sexual abuse of prisoners with disabilities, particularly Aboriginal and Torres Strait Islanders.

The National Disability Insurance Scheme represents yet another crisis. The Productivity Commission has warned there is now no carer of last resort for patients in an emergency, care provider agencies are reportedly owed up to $300 million and disabled people are often receiving inadequate care via untrained staff or sometimes no care at all, as government disability care services are being closed in favour of the new privatised service delivery scheme.

None of these instances stand in isolation and apart from either Australian society generally or government policies more specifically.

They all represent the frequently meagre nature of community compassion and the real level of care governments have been willing to organise and fund for vulnerable citizens. In reality the ideal level of support and care for the vulnerable - that politicians spout assurances about from campaign hustings every three years - is just so much political hot air unless ordinary voters insist that it be otherwise. 

As the Turnbull Coalition Government clearly intends to push forward with the full gamut of its punitive welfare reforms perhaps now it the time to consider if we have made any great strides towards a genuinely fair and egalitarian society in the last two hundred years or if we are only dressing up old cruelties in new clothes and calling this "looking after our fellow Australians”, "an exercise in practical love"an exercise in compassion and in love".


Over the last two decades, commissions and reports on institutional care across the western world have highlighted widespread physical, sexual, emotional and economic violence within caring systems, often targeted at society’s most vulnerable people, not least children, the disabled and the elderly. These have often come at significant cost not just to the individual, but the nation. As Maxwell has shown, national apologies, that require the nation to render itself shamed by such practices, and financial redress to victims, have impacted on political reputation, trust in state organisations, and finances. As each report is released and stories of suffering fill newspapers and are quantified for official redress, both scholars and the public have asked ‘how was this allowed to happen?’ At the same time, and particularly in the last few years as many countries have turned towards conservative fiscal policies, newspapers also highlight the wrongs of current systems.

In the UK, numerous reports have uncovered abuses within welfare systems, as people are sanctioned to meet targets, as welfare staff are encouraged to withhold information about services or grants to reduce demand, and through systematic rejection of first-try benefit applications to discourage service use. Often excused as ‘isolated incidents’ on investigation, such accounts are nonetheless increasingly widespread. They are accompanied by a measurable reduction in investment in welfare and health systems, that have required a significant withdrawal in services, and have been accompanied with policies of ‘making work pay’ that have required that benefits be brought in line, not with need, but with low working incomes. The impact of these policies and associated staff behaviour have been connected to increasing child and adult povertydeclining life expectancygrowing homelessness, and the rise in foodbank use.

Importantly, public commentators on this situation have described this situation as ‘cruel’. One headline saw a benefits advisor commenting ‘I get brownie points for cruelty’; another noted ‘Welfare reform is not only cruel but chaotic’. The system depicted in Ken Loach’s I Daniel Blake (2016), described by reviewers as a Kafka-esque nightmare, a ‘humiliating and spirit-sapping holding pattern of enforced uselessness’, and a  ‘comprehensive [system of] neglect and indifference’, was confirmed by many as an accurate depiction. Whether or not this representation of the current welfare system is held to be true, such reporting raises significant questions about when and how systems designed to provide help and support move from care to abuse. A focus on ‘isolated incidents’ today can be compared to the blaming of ‘isolated perpetrators’ in historic cases of abuse, an account that is now held by scholars to ignore the important role of systems of welfare in enabling certain types of cruelty to happen…..

The capacity of welfare systems to support individuals is shaped by cultural beliefs and political ideologies around the relationship between work, human nature, and welfare. Here late-eighteenth- and early-nineteenth-century Ireland provides a productive example. Ireland in this period was marked by significant levels of poverty amongst its lower orders, particularly those that worked in agriculture. The capacity to manage that poverty on an individual level was hindered by several economic downturns and harvest failure, that pushed people to starvation. As a nation without a poor law (welfare) system until 1838, the poor relied on charity, whether from individuals or institutions for relief. In the late eighteenth and early nineteenth century, the ‘state’ (usually local corporations) introduced more direct welfare, sometimes in the form of relief payments but more usually access to workhouses. 
After 1838 and until the crisis of the 1847 famine, relief payments were removed and all welfare recipients had to enter the workhouse. Accompanied by a growth in institutional charitable services, the success and ‘care’ of the system could vary enormously between areas and organisations. What it did not do is significantly reduce poverty levels in the population.

Indeed, it was important that the poverty levels of welfare recipients were not reduced by the workhouse system. Like current ‘make work pay’ policies, poverty relief measures were designed so that those in the workhouse or receiving charity elsewhere did not have a significantly higher standard of living than those who provided for themselves. This principle was determined based on the wage of an independent labourer, one of the poorest but also largest categories of worker. The problem for the system was that independent labourers earned so poorly that they barely managed a subsistence diet. Their living conditions were extremely poor; many slept on hay in darkened huts with little furnishings or personal property.

Those who managed the system believed that a generous welfare system would encourage people to claim benefits and so could potentially bankrupt those paying into the system. This encouraged an active policy of ‘cruelty’. Not only were benefit recipients given meagre food and poor living conditions, but families were routinely broken up, the sexes housed in different wings and prohibited from seeing each other. Welfare recipients were often ‘badged’ or given uniforms to mark their ‘shame’, and workhouse labour was designed to be particularly physically challenging.  

It was a system underpinned by several interlocking beliefs about the Irish, the value of work and the economy. Hard work was viewed as a moral characteristic, something to be encouraged from childhood and promoted as ethical behaviour. Certain groups, notably the Irish poor but also the British lower orders and non-Europeans more generally, were viewed as lacking this moral characteristic and required it to be instilled by their social betters. Welfare systems that were not carefully designed to be ‘less eligible’ (i.e. a harsher experience than ‘normal; life for the working poor), were understood to indulge an innate laziness…..

Throughout history, welfare services have required considerable economic investment. Unsurprisingly, this has required those who run institutions of care for people also to keep a careful eye on their financial bottom line. More broadly, it has also required a monitoring of services to ensure value for money for the state and its taxpayers and to protect the interests of the service users. As has been seen recently in discussions of targets placed on staff providing welfare provision in the UK, such measuring systems can come to shape the nature and ethos of the service in damaging ways.

A relevant historical example of this is from the Australian laundry system in the late nineteenth and twentieth century. Young women were placed in youth homes and registered as delinquent for a wide range of reasons from petty criminal behaviour to perceived immorality (ranging from flirting with the opposite sex to premarital pregnancy), to having been neglected by parents. These homes, often run by religious organisations, were designed to ‘reform’ young (and occasionally older) women, preventing them from entering prostitution or other criminal pursuits. The main mechanism for ‘reform’ was through a moral discipline of work, which in many of these organisations revolved around a professional laundry service. Work was often unpaid or paid at very nominal sums, given to women on their release. The service, which catered to the general public, kept institutions financially afloat, and many became significant-sized businesses. They required women to work very long hours, in challenging conditions. Accidents, particularly burns, were not unusual. As businesses grew, other ‘reform’ efforts that ran alongside, such as education, became rarer.

The laundry became the driving focus of the institution. The women were cheap labour, and managing that machine became not just a means to an end, but shaped the logic and functioning of the care service. It is an example of how an economic imperative can come to adversely impact on care, by disrupting the purposes and functions of the service. It was also a process that significantly reduced the level of ‘care’ that such institutions provided, not only through a physical job that wore on the body but one reinforced with physical punishment, which came to include emotional and sexual abuse, and poor food and living conditions……

There are significant variations between the institutional care described here for the nineteenth century and a contemporary welfare state that encourages users, as much as possible, to remain outside ‘the system’. The capacity for ‘the state’ to control every dimension of a person’s life today is significantly reduced; conversely, the ability of those in need to fall into service ‘gaps’ as they cannot access services or negotiate bureaucratic systems, is in some ways increased. Nonetheless, there are parallels in the operation of both systems that should give contemporary policymakers pause. Abusive care does not just emerge from individual perpetrators, from the institutional model, or even a lack of policies on staff-client relationships, but also from the wider values and beliefs that shape the production of welfare systems; from the financial and emotional investments that we place in institutions; and from the corruption or occlusion of institutional targets and goals.


Ensuring that the ‘cruel’ practices reported of current systems do not become systematic issues on the scale of previous institutional abuses therefore requires not just monitoring a few rogue individuals, but a clear goal about what our welfare systems should achieve. The needs and interests of service users should be placed at their heart, coupled with a significant social, cultural and political investment in ensuring that goal is achieved. All other goals and targets for welfare service providers, especially their frontline staff, should be secondary to that and carefully designed so as not to interfere with that end. With rising rates of poverty, homelessness and illness, welfare systems look to continue to hold a central role in society for the foreseeable future. It is imperative that the abusive practices of previous ‘caring’ regimes are left firmly in the past.