Changes to the Sickness Benefit Factsheet

Information for Health Practitioners

Work is the best route to financial independence and is good for people's well-being.

From 2 May 2011, we are introducing changes for people receiving Sickness Benefit that will affect you as a health practitioner and some of the people you see. The changes are part of the Future Focus welfare reforms and are designed to create a fairer benefit system with a focus on helping people into suitable work.

We recognise that for some people working isn't an option and we'll continue to help those people, as we always have.

 

Why are changes being made to the Sickness Benefit?

It is recognised globally that work is generally good for people's health and well-being, and that long term absence from work can have serious negative impacts. People who are out of work and on a benefit have a higher risk of poverty, social isolation and deteriorating overall health. What's more, the longer people stay on a benefit, the less likely they are to enter or return to work.

The changes to the Sickness Benefit are the second part of the Government's Future Focus package of welfare reforms introduced in September 2010. They are designed to help people on benefits into work as quickly as possible if they have some capacity for work.

What are the changes to the Sickness Benefit?

Work Obligations

From May, people receiving Sickness Benefit who have been assessed as able to work at least 15 hours a week will generally have to start looking for a suitable part-time job. They may also have other part-time work obligations, such as undertaking work-related activities like work planning or training.

To determine work obligations, Work and Income uses all the information available, including:

  • the information provided in the Work Capacity Medical Certificate
  • reports from medical examinations, including designated doctor reports
  • discussions with the client about their capacity to work given their condition(s).

No one with work obligations will be punished for not getting a job, but their benefit may be reduced or stopped if they don't try to find suitable work.

We don't expect people to find work on their own - nor do we expect people to take a job that is clearly unsuited to their circumstances. This is about focusing on what people can do to help them find suitable work and improve their wellbeing.

Annual Review

After each 12 months of continuous receipt of the Sickness Benefit, people will be required to attend a face-to-face meeting with a case manager. This process starts from May 2011.

At the meeting, the case manager will review the client's circumstances and eligibility, including their potential work capacity. If there is doubt as to the person's eligibility, they may be referred to a designated doctor for an additional medical assessment.

If the person is no longer eligible for the Sickness Benefit, they may be entitled to other assistance from Work and Income, such as the Unemployment Benefit. A case manager will talk through their options with them.

Changes to the duration of the second Medical Certificate

To give us a more complete picture of a person's eligibility for Sickness Benefit and their capacity for work, we are changing the duration of the second medical certificate from 13 weeks to a maximum of four weeks. Frequent assessment helps reduce benefit dependency at the early stages of illness or disability and improves a client's chances of returning to work.

The change in duration of the second medical certificate will start in May 2011 for people applying for Sickness Benefit. The first medical certificate will cover up to four weeks. The second medical certificate will also cover no more than four weeks (instead of the current 13 weeks), then all subsequent medical certificates may cover up to 13 weeks.

What does this mean for practitioners?

We depend on assessments from doctors, and in some cases nurse practitioners, midwives and dentists, to help us determine whether people are eligible for health related financial assistance and whether they are capable of doing some work.

Health practitioners also play a vital role in helping us to assist people into work. Not only are doctors, nurses and other practitioners trusted advisors, you're also the first people many come to when sick or injured. You can help people see work as something that is, in many cases, vital to their health and well-being. Here at Work and Income, we can support them to find that work.

These changes may result in an increase in recommendations for second opinions, particularly from GPs, but also from the Work and Income health and disability team.

Further information

For more information about Future Focus changes and how they may affect you, refer to our website. You can also contact your local Work and Income Regional Health and Disability Team. If you do not have their contact details, please call us on 0800 559 009 and one of our customer services representatives will arrange for them to contact you.