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Govt moves to end food voucher abuse

Glenn Blakeney, JP, MP Minister of Youth Affairs & Families

Brazen residents have been making quick cash by selling on the food they buy with government vouchers right outside the doors of grocery stores.This is why Government has replaced its monthly paper food vouchers with new grocery cards, which will be used like debit cards.The Department of Financial Assistance will today hand out about 600 of the new cards and activate each one with a person’s monthly food allowance.Shoppers have been spotted paying for $100 of groceries with government food vouchers, then going outside and selling them for $50. They then use the cash to buy cigarettes and alcohol, which cannot be bought with the vouchers.Youth, Families, Sport and Community Development Minister Glenn Blakeney admitted “calculating minds were abusing the system” as he revealed a whole raft of changes to government handouts.It comes after the Department spent almost $10 million more than its $25 million budget for the fiscal year, pointing the finger at the number of applicants rising from 650 to 1,600 in the past six years. Mr Blakeney said: “People are brazen, they simply walk around the corner and sell on the goods. But those who abuse the system will be ousted and suffer a consequence that will deny their basic need.”The ‘Non-Cash Grocery Cards’ will be marked with a person’s name and use of the card at the checkout will require photo identification. MarketPlace staff will also work in partnership with Government to look out for any fraudulent activity.Mr Blakeney said: “MarketPlace has been very vigilant and diligent in assisting us with what has been going on. They pick up the phone and tell us exactly what is happening. Our investigation officers then follow it up.”Mr Blakeney added it was not a widespread problem, but they knew it was happening and he said: “If it just happens once, that is too much as far as I’m concerned.”People will only be able to use the cards at The Shopping Centre for a one-month trial, then from May 1 the cards will be accepted in MarketPlace stores island-wide. Mr Blakeney said: “No longer will the clients of the Department have to make a monthly trek into the office in order to collect their monthly paper food vouchers.”It is also hoped that the cards will “increase the integrity and self esteem” of people receiving financial assistance as they have been designed to look like normal MarketPlace charge cards.Mr Blakeney said the department had been trying to “add dignity and respect” to seeking financial assistance as he knew it could be embarrassing to ask for help. He said: “More and more people have been made redundant, lots of people are being affected…People are becoming victims of circumstances beyond their control.“They have never had to be dependant on Government before, but now they find themselves in that position. It can be embarrassing and humiliating because of their pride.”To be eligible for a childcare allowance the income threshold has now been reduced to $50,000 from $70,000. This will force about150 people to go without after the budget for this programme was reduced from $3,840,000 to $2,500,000.Property is now considered an asset so anyone who owns property is no longer eligible to apply for help. And people who sell on property can’t apply for handouts within five years of the sale.Returning Bermudians must have lived on the island one year before applying for help and if a person loses their job because of their own actions, they can’t begin the application process until three months after the date of termination. Mr Blakeney said it was their duty to continue to provide people with basic financial assistance but it would be “workfare not welfare” as able-bodied people would be encouraged to find jobs.He said making savings was essential as they had seen “an influx of applicants in need of assistance over the last several years.”He said: “Times are hard because of the economic downfall. We have to tighten up. “People hold us accountable and feel Government should not be an agency that gives out handouts.“We are, in essence, endeavoring to do more with less.”The financial assistance changes also includes the axing of help with mortgage interest, property insurance and personal household allowances.And only one month’s arrears will be paid on expenditure items to encourage people to be “more timely and responsible.”Seniors will continue to be able to retain $5,000 in investments or assets, while all others will be able to retain $500. All income over this amount will be calculated in the assessment for a financial award.

A case study

A 31-year-old man has been told he doesn't qualify for Government handouts even though he has no job, no savings and hasn't been able to afford groceries for more than three months.

The Bermudian describes himself as “jobless, homeless, penniless and hungry” and now he says he has been “slapped in the face” after being turned away for financial assistance.

He claims Government wrongly based its eligibility decision on the savings of his total household when he is the only one of three roommates asking for help.

He said: “It's ridiculous, we're not a family, we're three roommates living separate lives.

“I was turned down because the whole house had to be assessed as one, even though I'm the only person asking for help.

“I didn't even want to ask for help, I felt embarrassed, I only did it because I had to. I'm not asking for much help, just a little bit of money to buy my groceries and catch up with my bills.

“I have to ask the question, is our Government really trying to help the people who are in need?”

The man lost his full-time job in a novelty store a few months ago. When he started work nine months ago he made $1,600 a month, but by the time his contract was terminated he was taking home $1,130. This is the equivalent of about $10 an hour.

He said he “could not survive on that type of income” so he started to apply for financial assistance before he lost his job. He said he filled in all the necessary paperwork but was told he wasn't eligible.

The reason given was that because his two roommates have more than $5,000 in savings in their bank accounts. The Department of Financial Assistance states that savings in your household's bank account cannot exceed $5,000.

The man pays $1,000 a month to sublet a room in the two-bedroom house, plus extra for bills. He is currently five months in arrears with his electricity bill. He also has an outstanding loan with the bank.

He is currently searching for another job and in the meantime he survives on “little hustles here and there”.

He told The Royal Gazette: “I haven't been able to buy groceries for myself since Christmas. I have a cup of tea or two a day and make sure that suffices. Sometimes I'm lucky enough to go to a friend's place for a meal or two.

“Now without a job I will not be able to pay my rent, I don't know what I am going to do. I'm just thankful it's me and I don't have any children to care for.”

The man says a Financial Assistance caseworker told him the only way he could qualify for a handout was if he moved into a one-bedroom apartment or studio with a monthly rent of $1,800 or less.

He said: “The copy of my bank account that they have clearly shows that I have zero funds in my account so how do they think I will be able to find another place to stay with no money at all? Most places require two months or a month-and-a-half up front.”

The man added: “I implore my Government to please look into the new rule changes that Financial Assistance has put into play.”

Minister of Youth Families, Sports and Community Development Glenn Blakeney said he would not discuss individual cases due to confidentiality.

But at a press conference yesterday the Minister did say: “There is a process of applying for financial assistance with things being looked at on a case-by-case basis.

“The reasons for denial are good reasons. The Department is very, very thorough in its qualifying process.”