NF514

Executive Summary


9 July 1999

 

Chairperson and Members
Low Income Sub-Committee
PALMERSTON NORTH CITY COUNCIL

 

SURVEY OF CONCERNS ABOUT WINZ,
by Palmerston North City Council
 

1. REASON FOR REPORT

The June Palmerston North City Council meeting requested the City Manager:

To report to both Community Affairs Committee and Low Income Sub-Committee based on the letters and stories collected by Council regarding public concern for Work and Income New Zealand (WINZ) operating procedures.

 

2. BACKGROUND

This report covers Palmerston North concerns about WINZ. It is not an independent evaluation of WINZ which is more the concern of central government. It is about the concerns of Palmerston North about the some of the impacts of WINZ service on the local community. It records concerns of 134 people who contacted Palmerston North City Council or a participating community group in the month of May 1999, following an invitation by the mayor for community groups to send her their concerns.

Concerns about the adequacy of help from New Zealand Income Support Services (NZISS) and now WINZ have been gathering momentum for almost a decade. Critical changes to WINZ and their predecessor, NZISS, were:

1. Restructuring: New Zealand Income Support underwent major restructuring in 1992, and further changes followed the appointment of Margaret Bazley in 1993. Then on 1 October 1998, NZISS combined with New Zealand Employment Services, and more recently WINZ became responsible for student allowances, with responsibility for student loans to follow in the year, 2,000.

2. Increasing emphasis on targeting following reductions in benefits: In 1991, many benefits were reduced. This led to some people having insufficient money to meet their own needs, and coupled with other changes led to increased reliance on supplementary benefits. A 1993 Department of Social Welfare report stated:

In conclusion, the reductions in disposable income from the changes described had been largely absorbed by people reducing their standard of living. Many of those interviewed for the study were in a situation of perpetual emergency. ... It is difficult to assess what proportion of the costs of the changes were being transferred to the Special Needs Grants and Special Benefit programmes. (Church et al, 1993, page 7)

3. Increasing use of appeal processes: An increasing number of appeals are being taken to the courts, and at times, findings are coming against NZISS or WINZ. This strengthens the perceptions of some advocates that some WINZ policy differs from the law.

In Palmerston North, the concerns have more recently been demonstrated by:

      1. The growth of demand on foodbanks (fifteen percent for Salvation Army Foodbank in the last year, Evening Standard, Friday, 19 June 1999: Bleak future for city foodbanks .)
      2. A survey of Palmerston North community groups by a Massey University Student, Johns (1998) which found:
      3. "Many responses referred to the difficulties they and their clients faced with Government agencies and in particular with WINZ (previously NZISS)."

      4. Research on advocacy in 1998, showed that advocacy was often needed by WINZ customers. Two social work university students, Anna Fenwick and Darren Davidson, are preparing a paper called "Are Advocacy Services Helping?". They surveyed 60 cases from 20.7.98 to 30.9.98 where a client dealing with WINZ was assisted by an advocate. The advocates reported that of the 60 cases, 7 had sought help independently and successfully from WINZ, although 36 had tried. With an advocate, 30 clients were successful. Their study reports clients' concerns about WINZ which included: accessibility, clients not knowing their entitlements, lack of politeness, feeling powerless, and having major unmet needs.
         
      5. A spate of public criticism of WINZ (CF Evening Standard, 26 June 1999). This article stated:
      6. A steady stream of complaints about WINZ's decisions have been made to the Palmerston North Advocacy Service, set up in May last year. Of the 480 complaints about WINZ laid with the service, 70 percent of those investigated saw people helped to entitlements.

      7. The Poverty Action group successfully lobbying the Mayor to collect stories about WINZ.

There are also direct impacts on Palmerston North City Council services, although it is not the role of the Council's housing Liaison Officer to physically take clients to WINZ, this often occurs for a client to receive information or his/her entitlements. Council tenants have expressed the following concerns:

This concern was balanced by the Council's Housing Liaison Officer praise for the service provided by officers in WINZ Super Centre and hoped the effectiveness of the current service would not be disrupted by the proposed changes to the Super Centre structure.

As the number and complexity of stories grew, it became necessary to integrate this initiative into Palmerston North City Council work-schedule, hence the request from the Low Income Sub-Committee which led to the formal decision by Palmerston North City Council to collect the stories and prepare this report. The calling for the report builds on earlier Council decisions such as the Community Development Plan Statement of Intent objective 4:

To address issues associated to the well-being of low income people in Palmerston North by identifying levels of poverty within the community and, for example, to advocate to organisations and government agencies to address such concerns by 30 June 2000.

 

3. PALMERSTON NORTH'S CONCERNS

The stories that were collected vary hugely; partly because they were collected by a variety of agencies and in different ways. They cover a wide range of issues, but the majority included major issues for the person telling the story. Although no attempt was made to verify the stories, they were given extra credibility by Department of Social Welfare publications which acknowledged similar concerns.
 

3.1 How the stories were collected

The stories that were collected vary in length from around 20 words to 15 pages. They were collected by community groups and a Palmerston North City Council officer. Because the stories were collected by different agencies and in different ways, the information was collected in an unstructured manner. Not all of the 120 or so people who gave a story were asked the same questions; and so often only their main concern was recorded.

The stories cover a wide range of issues. Major concerns arising were:

These are not new concerns. Petrie quotes from a Department of Social Welfare Study (Performance and Efficiency in the Department of Social Welfare, December 1987) as follows:

Consumers were dissatisfied with service delivery because of slow service (queues, and delays in securing payments) insensitivity in dealing with the needs and problems of different consumers, lack of experienced counter staff, lack of privacy and amenities in reception areas, and the complexity and lack of information in entitlements and rights (in Petrie, 1998, page 13)

Although the problem in slow service appears to have been addressed, the other concerns raised in 1987 are concerns in Palmerston North in 1999. Some beneficiaries, including one who had worked for Income Support felt that some of the concerns have become more serious since the early nineties.
 

3.2 Common thread in concerns

The stories were very diverse. One common thread, however, was that the vast majority involved major issues for the person telling the story.

Situations included judgements about what was a de facto relationship, disability, and more than one involved risk to safety of the people involved.

As is often the case for the stories collected, Department of Social Welfare studies have expressed similar concerns to those collected, as the following quote about "increased desperation" shows:

Programme clients and community agencies reported the benefit cuts had resulted in a reduced quality of life, increased feelings of desperation and increased social problems. (Church et al, 1993, page 4).

As well as coping with the seriousness of the issue involved, the beneficiary and the WINZ officer must also cope with the complexity of WINZ policy and legislation. The issue about what is a "de facto" relationship in terms of entitlement to benefits and legislation is an ongoing concern, and was mentioned by three respondents, one of whom is an advocate and works with a large number of people.

The Palmerston North concerns are expanded upon below. Specific details may have been changed to protect confidentiality of those involved.
 

3.3 Staff attitude

Of the 134 stories collected, around half (58) mentioned staff attitude. Of these, many found staff uncaring (21) or rude (15).

Some of the comments about staff being uncaring were due to the sensitivity of the situation they were working with:

"Some very vulnerable people come in, especially first visit and get no understanding. Newly widowed or separated. It can never be just a financial transaction."

Three of the stories were about treatment of the recently widowed, one of which involved the suicide of a spouse who also killed her children. One of these cases was witnessed by an experienced community worker who wrote:

A recently widowed woman with a very real short term crisis was told '...your problems are not my concerns' and that the worker's responsibility was to the management of WINZ resources. This was said in my presence. The whole attitude of the worker was bureaucratic and lacking understanding. The woman I was with was reduced to tears. It was a humiliating and depersonalising experience."

The same agency also provided two instances of good customer service, where the worker(s) showed an ability to listen and interpret a sensitive and complicated need.

Complaints about rudeness talked of being "treated like dirt", or "like a thief" or sarcastic comments, or being treated as "less than human". Some of these concerns centred around stereotyping:

When politicians belittle solo-mums, their attitude seems to connect to WINZ. This is happening again - right now (May).

Once again, Department of Social Welfare reports record this concern:

"Asked about any difficulties they had in applying, a significant proportion (one quarter) of all programme clients interviewed spoke of the personal cost or humiliation they felt in asking for assistance. ... it is vital that staff develop a manner and practice which minimises this invisible barrier to applying" (Church, 1993, page 18).

The effects of perceptions about staff attitude are felt by community groups such as foodbanks, as the following quote shows:

Go to the food bank because the response I get here is nice and helpful and am not sent away feeling like shit because I can't support my children.

The quote also captures much of the shame people feel seeking help from WINZ, and the subsequent difficulty some have in accessing, let alone complaining, about their service.

Two stories recorded the powerlessness that people felt when dealing with WINZ. One of these related to a dispute over a washing machine. The customer wanted a special needs grant loan to fix part of her washing machine which had been given to her by her parents (after being over-hauled) and which the repair man felt was worth repairing. Her case manager felt she should buy another second hand machine at a saving of $100; but which the customer felt would be more likely to break down.

Another concern that was mentioned by some was a lack of trust:

WINZ just muck you around. They say one thing and then do another. They threaten to cut your benefit if they don't like you".

I am terrified of repercussions from this (sending in a written letter re WINZ) but I owe it to you (the Mayor) and the others who have had a hard time.
 

3.4 Mistakes

Forty one stories inferred that WINZ had made what appeared to be mistakes.

Seven involved benefits being stopped due to error:

I have had my benefit stopped unexpectedly at least three times in the past year"

My case managers were away for a number of weeks so my paperwork was not processed and my special benefit cancelled.

WINZ sent a form to me at the wrong address. When it was not returned my benefit was stopped without contacting me. My small children suffered unjustly when I couldn't buy milk and necessitates.

Nine stories involved staff having insufficient knowledge:

At this stage I just could not believe that I was expected to raise my children on such a small amount. Felt if I left the office, I would lose the extra money that we needed to survive. I had made a point of finding out from my previous WINZ caseworker what my financial position would be - told my new case worker this situation was not OK. I was handed the complaint form to fill out - I had stopped crying and was now bloody angry! Case worker then got a colleague and they consulted computer and found that the cut was not necessary

Problems due to inaccuracy (from WINZ staff) added to the stress of returning to work. Knows it is a pretty hard job, but "they're making it harder by not knowing the facts" (Took a number of weeks and speaking to more than four staff before case manager found policy on transition payment. This money was needed to ensure there was some food in the first fortnight of work).

Seven stories concerned WINZ officers changing their story. Often this was due to a new case manager.

My Customer Service Officer told me to write a letter about my situation which I did. When I next went to WINZ my CSO had been changed and because of my situation, my benefit was cancelled even though my previous CSO had said it was OK.

One story related to a decision changing within a matter of hours:

In January sought special needs grant for assistance. WINZ said yes, just get details of account, so we can direct credit. Came back on the same day, and WINZ said "No" it does not fit Scope policy decision.

A Department of Social Welfare study on the Special Needs Grants and the Special Benefit had concerns about consistency which could throw some light on why decisions changed without any apparent reason:

Staff themselves reported that decisions within the two programmes could be based on personal values which had no place in the decision being made (Church et al, 1993, page 18).

This evidence of inconsistency reveals much of the complexity in the delivery of supplementary programmes to meet emergency needs. Inconsistencies between and within districts led to inequity in the delivery of the programmes (Church et al, 1993, page 23).

Five stories related to receiving threatening letters to cut benefit unless information provided; but information had already been provided. One story is summarised below because it shows how problems of access, seriousness of situation and staff attitude all combine to compound the problem:

Invalid son received threatening letter that unless forms returned within 14 days, they would cut benefit. "Wish that they could see the distress to someone who is not well that threatening to cut their benefit causes." Letter was dated one week ahead of date on which letter was actually received, and as had already sent forms, rang case manager then as he not in, rang Call Centre. They said leave message on Case manager's phone. Rang case manager and voice message said that he would not be back until after the date the forms were due. Rang Call Centre again. They said that form's probably lying around on somebody's desk and rang Palmerston North. Forms found on somebody's desk.

Another respondent wrote that they had faced the same problem, two years in a row. Each time it took them an average of seven actions to get the problem resolved. When describing the second incident, they wrote:

"WINZ might regard this episode as vastly improved service. The time taken to find the form they received on time (as always) has reduced from 13 days (1988) to 10 days.

Two stories were about large debt accumulating at WINZ, that customers then had to pay off in weekly instalments. Another three concerns were about the apparent lack of accountability for WINZ staff who make mistakes.
 

3.5 Access to case managers

This was another major issue with 24 people reporting problems in this area. Often this problem compounded other issues.

A number of stories concerned lack of access to case managers in an emergency. The Minister of Social Welfare stated `in parliament (December 1996) that policy requires that people with emergencies are seen immediately. In at least one case, a person requiring emergency dental care, went in on Friday and her case was heard the following Monday.
 

3.6 Lack of knowledge about entitlements

Twenty-four people reported this as an issue.

Staff do not tell customers the whole story. Every-time I hear of somebody going to WINZ, I ask about their entitlements, and every-time, there are entitlements that they are entitled to but not receiving.

Many of the reports came from those speaking to the Council officer collecting the stories, when he asked whether they knew their full entitlements. This lack of information may have a bearing on WINZ legal obligations. . The court ruled:

Administrative fairness in the case of an applicant for a benefit such as a special benefit must, in my view, include an opportunity to place before the decision maker information relevant to his decision. An applicant cannot be said to have been given a fair opportunity to do this unless he or she is also given a fair opportunity to comprehend the conditions upon which such benefits are granted, and at least the principal criteria bearing on eligibility. (Ankers versus Attorney General).

A Department of Social Welfare Study reports on a paper by McKinnon submitted for an Honours degree in law at Victoria University:

She considers however that IS staff have still not been genuinely exercising discretion in the majority of cases. She attributes this in part to an institutional culture in IS of strict adherence to rules, and the incentives created for staff by work pressure and performance standards which focus on processing speed. McKinnon also considers, however, that the Ministerial direction on Special Benefits which IS is required to implement is itself impractical and unworkable. (Petrie, 1998, page 30)

Another Department of Social Welfare study states:

Income Support staff reported that there was insufficient information available to clients about the assistance that was available to them. Staff did not have time to explain complex policies... Community organisations reported access to the two programmes depended on client knowledge of what was available and staff willingness to give appropriate information (Church et al, 1993, page 16).
 

3.7 Not enough money

Thirty-four stories related to beneficiaries not receiving enough money. Twenty-three of these came from MUSA who listed 23 students who received extra assistance due to lack of money for people on student allowances. Stories related to extra costs due to medical conditions, and delays in receiving payment.

One complaint related to how special needs grants (which are usually given as interest-free loans) are only available if you buy "cheap and nasty" with the consequence that you have an increased likelihood of having to get another special needs grant to replace another household appliance. Other concerns related to insufficient financial recognition of people who find part-time work.
 

3.8 Miscellaneous

Thirty-two stories ranged over a great diversity:

3.9 Change of case managers

Eight people referred to problems because their case managers were changing. One reported having between 4 and five in one year. Two mentioned the associated problems of going from a good case manager to one that was still learning or not so helpful.

Three wanted to change their case manager but were being discouraged from doing so.

I am not allowed to change my case manager even though I have complained verbally and in writing about his attitude and the things he says to me: direct comments about me personally.

In 1996, the Minister of Social Welfare stated in Parliament:

While continuity of service and one point of contact are important in providing quality customer service, genuine requests to change staff members can usually be accommodated.
  (Office of the Clerk, 23 December 1996)
 

3.10 Job folders

Thirteen people complained about WINZ system for displaying jobs. Under NZES, jobs were put up on notice-boards. Now they are put into two folders on a small desk. People have to queue to get access to the job folder, and then queue again to register their interest in a job. Frustration with this system compounds on other frustrations. A group of five people sent a signed submission which included the following:

"Question: Are these people qualified to select us? This process makes us feel de-valued, disempowered, discouraged and frustrated at being treated like sheep in a herd...We are sent to TOPS courses where we are taught to value ourselves and then the subsequent contact with WINZ CSO's and the WINZ environment strips us of all we have learnt. We suggest WINZ staff are trained to be people friendly, professional in their contact with clients and approachable. We also note a lack of staff numbers to deal with the increasing number of beneficiaries."
 

3.11 Discussion

There is increasing concern in the community about unmet needs of beneficiaries. The most obvious impacts of these concerns are on Foodbanks and the Advocacy Service. From the stories provided, it became apparent that most stories involved critical situations, and often complex situations.

From the information available it is difficult to determine what actions are due to policy and what is due to operational procedure. Obviously it is not a Palmerston North City Council role to advocate for individuals yet in order to determine whether policy was incorrectly applied in the above 120 stories, one would have to review each case. Judging from some of the comments collected, customers would need support from somebody with a strong knowledge of legislation and policy.

The complexity of the task faced by case managers should not be under-estimated: The stories show that WINZ staff have to make critical and complex decisions on a great diversity of situations. Examples included:

Health involving judgements about what were reasonable medical costs.

De facto relationships where people may be forced to live together due to cut in income.

Marital split-ups - including a case involving assets held by an overseas national;

Safety: especially relating to violent relationships;

Disability, for example, costs of repeated replacement of equipment.

Grief: for example recently widowed, including one instance of bereavement by suicide.

Replacement of major household items, including washing machines.

Debt management, as special needs grants are only given as a last resort.

Helping people out of difficult situations, for example a person in a small outlying township loses her job and needs a special needs grant to move to Palmerston North where she is closer to doctors, training and potential jobs.

Families with lots of problems and under stress, eg. families with sick children, high rent, and marital disputes, and disposable income of less than $40 per week.

Acceptable Housing, for example: Beneficiary needed to move due to threat of violence, and so needed grant to move. WINZ officer rang and wanted her to take cheaper houses in street where beneficiary did not want to live. WINZ told woman that she only need two-bedroom house because children did not need one bedroom each. Woman found another flat from HNZ and case manager helped after complaint to case manager's manager.

Changes in policy. Frequent changes in policy add to the complexity involved.

Once again, the issue of the complexity and seriousness of the judgements required by Income Support and new WINZ staff has been explicitly acknowledged in Department of Social Welfare Studies:

Moreover, a successful discretionary system requires that resources are committed to producing a professional, competent and highly trained staff with interviewing and assessment skills similar to those required of social workers (Church et al, 1993, page 21).

In terms of natural justice, it must be acknowledged that only one side of the story has been collected, and hence we cannot make statements about the competence of the work of WINZ or particular WINZ staff.

It is possible that WINZ is doing the best possible job within its legislative responsibilities. Palmerston North WINZ conducts a monthly survey of around 120 customers to measure customer satisfaction and regularly gains satisfaction rating of 85% or more. The work of WINZ is more the concern of central government. The impact of that work on the local communities has become a concern for local groups in Palmerston North and is an issue requiring advocacy from Palmerston North City Council.

 

4. CONCLUSIONS

The Community Development Plan states that Palmerston North City Council's role is to advocate on behalf of its community. The collection of the stories has shown that there is a problem, and that there is a sizeable proportion of people who want Palmerston North City Council to advocate to central government.

On the basis of the stories that have been collected, the following can be stated:

      1. There a lot of concern in Palmerston North about the impact on the community of the work of Palmerston North WINZ office. While 120 stories do not constitute a statistically valid survey, the concerns are constantly being echoed by community groups, and Department of Social Welfare Studies.
      2. The concerns of WINZ customers are having an impact on community groups and Palmerston North City Council. People stated that they would go to a foodbank rather than WINZ because they only had enough money for one taxi fare and a refusal by WINZ would mean going hungry. The seventy percent success rate of the Advocacy Service suggests major problems, and the need for an independent advocacy service. Some people said one should never go to WINZ without an advocate. Yet this service needs money and distracts potential volunteers from other tasks. Palmerston North City Council is also directly affected by concerns of WINZ customers, for example: Council Officers are finding themselves working more and more as advocates for special needs and elderly Council tenants.

 

4.1 Possible Council actions

Because of the impact that is being felt in the community, there is a need to lobby central government. The alternative is to become a passive recipient of the impacts of central government policy.

There is also a need to monitor the situation to determine if it is getting better. A more structured survey is needed to do this. The stories collected, while not providing a systemic view of problems do provide a strong basis for the developing a structured survey. The more structured survey could be run in May 2000.

Because the issue is also a national one, Palmerston North City Council should seek to combine with other councils to determine if they have similar concerns and to strengthen its lobbying.

Palmerston North City Council may also wish to consider:

 

5. IMPLICATIONS

(a) Community

The impact on the community is shown by:

As pressure increases, Palmerston North City Council may face more requests for financial assistance in this area at annual plan time. Already the mid-year foodbank drive has become a regular event.
 

(b) Communication

Palmerston North City Council action in collecting the stories has aroused considerable media interest.

It has also brought many thanks from community groups and beneficiaries. One person said that they needed somebody with the credibility of Palmerston North City Council to speak on their behalf. The stigma of being a beneficiary and the fear of reprisals, prevents many from speaking out. There is also the fear of loss of privacy due to intense media scrutiny should one make one case known.

As one respondent said about Council's role in advocacy:

If not Palmerston North City Council then who?

Palmerston North City Council is currently developing a policy on advocacy which will define its role. Council experience on this issue will help develop this policy.
 

(c) Financial

None, although there has been considerable time spent in collecting stories, researching, and writing these stories.

 

6. RECOMMENDATIONS

6.1 That Palmerston North City Council lobbies central government with the concerns raised in this report about the work of WINZ.

6.2 That the City Manager be instructed to collect any concerns about impacts of WINZ on the Palmerston North community in a more structured manner in May 2000.

6.3 That Palmerston North City Council seeks support from other councils for lobbying central government about the impact of WINZ work on other local communities.

6.4 That WINZ be invited to comment on this report and any subsequent recommendations by Palmerston North City Council.
 

 

Nigel Fitzpatrick
COMMUNITY ADVISOR
City Alive!

 


REFERENCES

Church, Harland, Kelly, Tararo, Uta'i, Harvey (1993) An Evaluation of the Special Needs Grants and Special Benefit Programmes. Evaluation Unit, Social Policy Agency, Department of Social Welfare.

Johns, C (November 1998) The Voluntary Welfare Agencies in Palmerston North and the issues facing them and their clients.

Petrie, M (May 1998) Organisational Transformation: The Income Support Experience. Department of Social Welfare
 


www.wairaka.net/ubinz/IR/1999WINZconcerns.html