Review of the Social Welfare system

On Thursday the Ministry for Internal Affairs announced that Government had undertaken a preliminary review of the existing social welfare system and had identified a number of issues for broader public discussion. An issues paper has identified key questions to help with the development of a policy paper for further Government consideration.
Key areas identified include:
• What is the purpose of welfare payments?
• Who should receive welfare payments?
• What is an appropriate level of welfare payment?
• Are there other safety nets that should be considered? E.g. role of the community; extended family supports; superannuation; insurance.
• What system can the Cook Islands Government afford?
A copy of the discussion paper is available on request from Internal Affairs from 8 February 2010. The date for submissions will close Wednesday 17 March 2010 to enable review and development of policy options for consideration by Government. Clear identification of the author and contact details must be included as part of submissions.
Background
The Cook Islands welfare system, as provided under the Welfare Act 1989, provides for payments for all resident children aged up to 12 years (Child Benefit) and to all resident persons aged 60 years and above (Old Age Benefit). Special payments are made to people who are infirm or destitute. A caregiver payment is also made for those caring for infirm or elderly persons. One-off grants equivalent to 6 month’s benefit are made to the families of deceased beneficiaries to help pay funeral costs. Other special assistance is given for improving the household residences of disabled and elderly people. A new born allowance is also made on the birth of a child.
Facts and figures
• In the 2009-10 Budget, $11.3 million has been allocated to welfare payments (old age pension; child benefit; destitute/infirmed payment; and care givers allowance). This represents approximately one-tenth of the total Government operating budget.
• In 2009-10, more than one-third of the resident population is in receipt of a welfare payment. As at December 2009, there were approximately 5,600 people in receipt of a welfare payment out of an estimated resident population of 13,000 (around 40 per cent). The proportion of people in receipt of a welfare payment is expected to be higher in the outer islands.
• The number of people receiving the old age payment has increased by around 8 per cent in December 2009 when compared with December 2007. This is likely to be attributed to the increase in the monthly rate of payment from $240 per month to $400 per month.
• The number of people receiving the child benefit has decreased by around 3 per cent in December 2009 when compared with December 2007.
For more information, please contact: John Henry Director, Welfare Division
Ministry of Internal Affairs.