150 families will see daycare allowance axed

The income threshold to qualify for the assistance was slashed from $70,000 to $50,000 yesterday.

The move is one of a string of money-saving measures at the Department of Financial Assistance.

Potential applicants who own their own home will now be automatically excluded.

Those who have sold or transferred property up to five years before making a claim also no longer qualify.

Savings

Glenn Blakeney, Minister for Youth, Families, Sports and Community Development, said budget cuts — including a reduction of more than $1.3 million from the childcare programme — forced the belt-tightening.

He added: “We have had to make legislative changes in order to achieve cost savings while still remaining on task and in line with our mandate to provide Bermuda residents with basic financial assistance.

“We have to tighten up — the people hold us accountable when we are spending money, no matter how legitimately it is being spent.”

Other changes to the department include a new ceiling of one month’s arrears — previously applicants were assessed on a case-by-case basis.

Mr. Blakeney said: “This will be a great cost saving to Government and it will encourage clients to be more timely and responsible in their requests for assistance.”

Government will also cut mortgage arrears and interest from the programme, plus property insurance and personal, household and comfort allowances. Bermudians returning to the island from overseas face a new residency requirement of one year before becoming eligible for financial assistance. Applicants who resign voluntarily or are fired from their jobs face a three-month wait before qualifying for help, while any income of more than $500 per month will be offset against any financial assistance award.

Assets

Mr. Blakeney said seniors would still be able to retain $5,000 in investments or assets, while other applicants will be allowed to retain $500.