The Ministry of Economy and Labour wishes to advise the public that the Government is amending The Financial Assistance Act 2001 and the Financial Assistance Regulations 2004 to provide abled-bodied financial assistance recipients who reach the maximum period of seven years during a fiscal period with a reduced award until they can secure gainful employment or progress out of eligibility.
Previously, recipients could remain on Financial Assistance (FA) for up to five years. However, in 2020, due to the COVID-19 Pandemic, amendments to the regulations allowed abled-bodied persons to stay in the FA program for an additional two years, totalling seven years.
In alignment with FA reform, this change will enable recipients who require assistance after the seven-year term to receive a reduced benefit where necessary.
Recipients who meet the criteria are only eligible for the following awards, and no other benefits will apply:
- standard room rate
- food allowance
- health insurance coverage.
Following the amendments, 17 individuals who have reached the maximum period currently allowed for FA will be eligible for the reduced benefit.
The Ministry can also advise that as of May 2023, the number of persons receiving FA is as follows:
|
PERSONS ON FINANCIAL ASSISTANCE (EXCLUDES CHILD DAY CARE ALLOWANCE) AS OF MAY 2023 |
|
|
CATEGORY |
Total |
|
TOTAL – ABLE-BODIED UNEMPLOYED |
120 |
|
TOTAL DISABILITY |
752 |
|
TOTAL - EMPLOYED INSUFFICIENT EARNINGS |
130 |
|
TOTAL PENSIONER |
1021 |
|
GRAND TOTAL |
2023 |
The public should also note that under section 8 of the Financial Assistance Act 2001, the Director of Financial Assistance can grant or refuse an application for an award. As a condition of an award, all Financial Assistance recipients must be registered with the Department of Workforce Development and attend one or more life-skills programmes. This requirement helps ensure recipients are equipped and can take up gainful employment.
To aid clients in obtaining gainful employment, Personal Employment Plans are a requirement for receiving financial assistance. The Personal Employment Plan outlines individuals’ employment goals, action steps, required resources and timelines to meet each objective. Additionally, there may be a need for health and emotional services such as a referral to a substance abuse facility, mental health facility, and Bermuda College for upskilling. This initiative is essential to Financial Assistance Reform and illustrates a pathway towards obtaining sustainable employment.
The amendment to the services provided by the Department of Financial Assistance directly aligns with the Government’s ongoing commitment to providing the required social support services that position Bermudians to achieve gainful and respectful employment opportunities in the local workforce.