The number of people seeking Financial Assistance has risen by a third in the past year.

Up to 1,400 Bermudians and their families are now dependent on state welfare as the economic downturn continues.

The figures were revealed by Neletha Butterfield, Minister of Cultural Affairs and Social Rehabilitation, as she outlined the Budget for the Departments of Child and Family Services, Financial Assistance, Court Services and National Drug Control.

MPs approved Government's allocation of funding in the House of Assembly on Friday. The endorsement of the four Department Heads also completed the approval of this year's Budget by MPs, under The Appropriation Act 2010 and Estimates of Revenue and Expenditure 2010-11.

Ms Butterfield started her Brief by outlining the budget for Child and Family Services.

The Department provides day care, care and protection services for children plus residential, home-based and counselling services for teenagers and families.

Funding has increased by one percent this year, or $151,000, to $17.7 million.

Ms Butterfield said the challenges of substance abuse, mental health issues and maintaining an income and housing were all being "exacerbated" by the economic downturn.

Government is currently exploring creating more childcare centres on the Island as demand at the Happy Valley Child Care Centre is exceeding the places available.

The Government childcare centre caters for 44 children under-four, up to 60 percent of whom are referred from social assistance agencies and departments. Parents pay between $100-$250 a month, dependent on a means assessment of their income.

Ms Butterfield said: "There is still an ever-increasing demand for the places. Demand far exceeds the number of places available."

This year however, the Centre is to receive seven percent less funding, at $937,000 as opposed to $1,012,000.

Donte Hunt, Bermuda Democratic Alliance MP, questioned why funding was decreasing when demand was rising.

"There are more people who need assistance with the economic crisis we find ourselves in. So why is there a seven percent decrease in funding?" he asked.

Speaking on Family Services, Ms Butterfield said it is to maintain the same budget as last year at $2.7 million.

However, referrals for 'at risk' children have risen by more than ten percent in the past three years. Last year 597 children were referred for abuse and neglect, of which 315 cases were substantiated by evidence.

Among the reported cases, 115 children were allegedly physically abused, 89 sexually abused, 78 had behaviour problems and 251 were neglected.

Ms Butterfield said: "This year Family Services witnessed a spike in referrals on children for physical abuse (22 percent) and neglect (12 percent), in particular referrals on children who are exposed to domestic violence."

She said this was a sign of "an increase in the number of families in crisis, the escalating violence in the community and the community's awareness of the duty to report suspected abuse and neglect".

Ms Butterfield said: "The Department is particularly concerned about gang violence and the children and families who are impacted by this growing trend.

"We are collaborating with our community partners to develop a coordinated and an appropriate response."

Of the 597 children referred, the majority stayed with their families. The Intervention Team provided services to 212 children and their parents.

Ms Butterfield then spoke on Foster Care. Government wants to encourage more foster parents and care for children by their extended families.

Last year 148 children received Foster Care services, 33 of whom were placed with relatives receiving foster fees from Government. There were 28 foster parent applications, 22 of which were approved.

Charlie Swan, Shadow Minister for Youth and National Training, said: "I'd like to commend the number of people who have come forward as host families to the foster care programme."

The 2010-11 budget however, is down two percent to $2.4 million, something which Mr. Hunt remarked on.

"I notice there is a two percent decrease in funds for Foster Care, but when you turn over to the output measures we see there is an increase in the need for foster parents," he said.

Mr. Hunt also questioned a lack of increase in funding for Family Services, particularly in light of more children being referred for abuse and neglect last year.

"Again there seems to be a dichotomy in the output measures and what we see in terms of funds," he said.

"I would love to see, and would expect to see, an increase that represents the output measures. We find the funds to not represent the output measures we see here."

Bermuda Youth Counselling Services in the meantime, is to receive an additional seven percent in funding, or $68,000, to reach a total $1,097,000.

This offers substance abuse, emotional and behavioural problem counselling, as well as education programmes against alcohol and drugs.

The budget for Residential Treatment has fallen, by one percent to $8.8 million.

Residential Treatment Services provides intervention for 12 to 18-year-olds deemed to be at risk in the community by the Family Court. The youngsters are subject to Care Orders.

Last year 45 girls and boys were assisted, all of whom had family relationship issues. Most had experienced childhood abandonment, abuse, grief and domestic violence.

Ms Butterfield said this year RTS will work with other agencies "to streamline services and to maximise the use of existing resources".

The Minister praised the work of the Cross Ministry Intervention Team, which will this year receive $1.7 million an increase of one percent.

The team aims to assist parents who cannot provide their families' basic needs, such as housing, or who lack education to gain employment.

As well as providing shelter, it undertakes coaching in debt reduction and counselling, and teaches positive parental behaviours.

Last year in a pilot group of 14 parents, 11 committed to the full 15-week programme.

Ms Butterfield said: "In the upcoming budget year, CMIT endeavours to further enhance the intervention services provided to clients."

The Minister then outlined the budget for the Department of Financial Assistance. This has increased one percent or $288,000, to $28.6 million.

This includes $3 million to cover assistance in HIP and FutureCare premiums, and $4.8 million for the Child Day Care Allowance Programme.

Up to $25 million is to provide financial assistance for rent, food, utilities, medicine and medical supplies, as well as grants to the Salvation Army, Care of the Blind, Meals on Wheels, Summerhaven, Teen Haven and Packwood .

Another $3.6 million is for general administration.

The Minister said: "There continues to be an increase in persons applying for assistance over this past fiscal year.

"The increase may be directly contributed to the shrinking of financial resources in our current economic climate."

However she said most clients continue to be seniors, the disabled and special needs citizens. The average monthly award is $1,825.

Over the past year, an additional 200-300 people have sought assistance, bringing the number of clients per month to 1,100-1,400.

This means each Case Worker is seeing between 150-165 clients, 30-35 more than last year.

"There has been an increased demand for financial assistance within this past year, to the total of approximately $4.3 million," said Ms Butterfield.

Government is to run five Money Management groups this year, offering advice and counselling in eight sessions, twice-weekly. Each group will consist of up to ten clients.

Ms Butterfield said a Department of Statistics survey last year on client satisfaction from the Child Day Care Allowance Programme had yielded "astounding" results, indicating it was a "major success".

Since its launch in November 2008, as of January this year 750 people have applied for assistance. More than 600 applicants have been approved and will receive $730 a month for a child's day care.

The Minister then moved to the Department of Court Services, which aims to prevent reoffending through assessment, supervision, rehabilitation and prevention.

This year's budget is $5.3 million, unchanged on last year.

Ms Butterfield said the number of prisoners has decreased while offenders under community-based supervision has increased. More than 300 people are currently subject to supervision orders.

"There has been a decrease in the rate of reoffending under community supervision since last year," she said.

The Drug Treatment Court Programme has had particular success, with its "holistic" approach, and is being used as a model for similar programmes in the Caribbean.

"The reoffending rate, 1.08 percent, remains very low for this vibrant programme," said Ms Butterfield.

She added there were now plans to train Bermudians in the area of Forensic Psychology, "to negate the current need of recruiting overseas".

"Several personnel have basic trainings and specialised degrees that bode well for this undertaking," she said.

"It is proposed to assist qualified, aspiring and interested officers in further education pursuits toward qualifications and future employment in the department in the specialised field of Forensic Psychology."

An allocation of $73,000 has been set aside in the Administration budget.

Outlining the Department of National Drug Control budget, the Minister said it will receive $6.1 million a 29 percent increase on $4.78 million.

Last year the Department received $4.4 million from the Confiscated Assets Fund. The budget for this year is up because "this increase represents funding needed to offset the decrease in the allocation from the Confiscated Assets Fund in 2010-11 that supported key stakeholder programme grants".

The Minister said the Department will continue to implement the National Drug Control Policies and Master Plan this year. An Action Plan was originally outlined in December 2007.

She described substance abuse as "one of the foremost social issues affecting Bermuda today".

The Department's goals for 2010-11 include: implementation of the Mandatory Treatment Programme in Corrections; analysis of the present drug situation in Bermuda; improved access for substance abuse treatment; and redevelopment of the Captains-in-Charge facility at Dockyard for a residential substance abuse treatment programme for 36 men and women.

An additional $340,000 this year will assist the initiatives.

The budget for Community Education meanwhile is $266,000. This will include release of research data into substance abuse, public service announcements, drug prevention campaigns, community focus groups, and drug awareness messages.

In terms of treatment, there will be licensing and accreditation to set standards and certification for staff and treatment agencies.

The Research and Policy Development Unit has been allocated $420,000 an additional 39 percent, for information gathering and analysis, evaluation and policy development. The increase covers $117,000 for a new full-time Research Officer.

The aim is to determine trends and patterns of drug use, evaluate drug control efforts, and develop a legislative and policy framework for the Master Plan and Action Plan.

Research will also look at the relationship between drugs and criminal activities, and the social impact of drugs.

The Minister also said the Department is to work with the Attorney General's Chambers to develop a National School Drug Policy.

It will also seek to establish "amendments to legislations that seek to provide restrictions on advertisement and promotion of alcohol and tobacco products".

Ms Butterfield said: "The Government is committed to the development of a healthy society, free from the negative consequences of uncontrolled alcohol, tobacco and illicit drug use and the illegal traffic of narcotics."

Overall funding for the Ministry of Culture and Social Rehabilitation has decreased by two percent, or $1.2 million, to $72.8 million.