ACC and Welfare

The Herald reports:

The proportion of long-term clients moving on to benefits has surged since the corporation adopted a tough new stance, which has fuelled allegations that they are being forced off compensation before they are rehabilitated.

That may be the case, it may not. Let’s look at the numbers.

But yesterday’s figures show that the proportion of long-term claimants leaving ACC and going on to health-related, unemployment or domestic purposes benefits rose sharply from early 2009.

In the five years to 2008, the proportion going on to benefits was 12.1 per cent, but during 2009 that rose to 16.4. In the first five months of 2010, the most recent data held by ACC, the proportion rose to 19.4 per cent.

ACC figures also showed the corporation had reduced the number of long-term claimants on its books by 3644 or 25 per cent to 10773 in the three years since June 2009. That reduction is well ahead of ACC’s targets.

Okay so 3,644 people have gone off ACC, and 19.4% have gone onto . First of all that presumably means 81% or 2,937 are now in employment which is a good thing.

Of the 707 who have gone onto welfare, the data suggests 441 would have been on welfare under the previous trend. That means an extra 266 have gone onto welfare.

At a macro level, an extra 266 on welfare for an extra 2,937 back in work seems pretty reasonable. But this shouldn’t really be about the macro level. In an ideal world no one would be declined ACC support who genuinely is unable to work due to an injury, and no one would remain receiving ACC support who is capable of resuming full-time work after their injury. There will always be some in both categories, and the aim should be to minimise both.

Of the 266 extra people on welfare, a key thing might be what benefit have they gone onto. If they have gone onto an invalid’s benefit or even a sickness benefit, then it suggests there could well be a problem. If however they are on the unemployment benefit, then that may just be because the jobs market is still subdued.

So that data is interesting and worth investigating more. But it is not conclusive of itself.

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