Financial distress is a very real barrier for people who are on a workers compensation claim. With increased costs of living and decreased wages the struggle is real. Join us as we discover some alternative and new ways to get some free financial advice and help.
Episode Summary: In this episode, you will meet Bernadette Redford – Salvation Army Money Care adviser.
Through sharing, this information we hope to give encouragement and inspiration to those going through a tough time as they recover from a workplace injury.
Guests: Bernadette Redford, MSSN Members.
Host: Abe
Financial stress is associated with poorer health and return to work outcomes after injury.
Many years ago, for fun, I asked a question in a survey of people who worked in Workers Compensation the question: “If you had an injury at work, would you put in a Workers Compensation Claim?” and 100% of participant answer was NO!
I found that sad.
Today I want to have a deeper look into some of the research around the impact of financial distress for an injured worker.
The workers compensation schemes were designed (historically) for people with a physical injury to return to their original employer and replace their wages while they recover. The payments were constant but over time amendments to payments were required as more and more people become injured and requested compensation.
In the NSW Workers Compensation Scheme and others, a step down in wages occurs at approximately the 12-week mark post injury. Which means that 12 weeks after your injury, if you are still injured and cannot go back to your employer, you will get less income. I suspect this idea had a two-fold implication, the first being a saving to the scheme and second it was potentially intended to act as a motivator for people to get back to work quickly. From there, the scheme then continues to decrease wages in accordance with the legislation.
A 2020 study looking at 4532 adults injured at work found that 54% of the workers receiving a workers compensation payment experienced financial distress.
The study showed that 1. Injured workers were vulnerable to experiencing increased financial stress, 2. The financial stress increased the time it took to recover and 3. They found that there were overall poorer health outcomes for the injured workers.
A further study published in 2023 showed that 41% of injured workers who have been on the workers compensation scheme for some time, transitioned from workers compensation to unemployment payments and a further 19% transitioned to the disability support pension when workers compensation benefits ended.
Financial distress is a very real barrier for people who are on a workers compensation claim.
Most of us know the unsettling feeling that another rate rise creates. The increased mortgage or rent repayments. We know the burden of juggling childcare payments, paying for petrol, buying food, paying school fees, or saving for a holiday or retirement. We know the juggle of electricity, water, and car insurance. We know the stress that is linked to what we can and can’t pay and most of us have an idea of how long can we survive on less and less, but does that look like for an injured worker? What do the rate rises and piled up bills feel like for a person who gets injured at work and is unable to go back to work.
What happens to the injured worker who started as a fully functioning employee with good wages, financial security who then begins a journey of stepped down payments with an eventual exit from a scheme with or without experiencing recovery?
Little is done by way of financial counselling to those on a workers compensation claim so to reduce some of the fear and anxiety created by the unknown, the members of the My Social Support Network Podcast group set about to find some answers and some help to put them back in the drivers seat of their finances and feel in control again.
The podcast this week is the chat with the Money Care program at the Salvation Army. If you are an injured worker in distress or you are a case manager and know you have a worker in distress then this episode was designed to help you help your injured worker navigate their distress through giving them good information.
For more information on the Salvos Moneycare Services, to make an appointment with a financial counsellor or to download the full digital copy of You’re the Boss, go to salvationarmy.org.au/about-us/our-services/moneycare, call 1800 722 363 or email moneycare@salvationarmy.org.au
Link to You’re the Boss e-booklet in the Newsletter and or our website. The e-book is the third link.
- Moneycare Financial Services | The Salvation Army Australia
- Financial Assistance | The Salvation Army Australia
- Salvos_YTB_Book_V18.pdf (salvationarmy.org.au)
Link to excel spreadsheets for budgets.
This is an example of the fist spreadsheet that came up from a Google search.
Link to money smart. Very comprehensive list of free tips, calculators and guidance
Link to Service NSW Savings Finder
We hope you love this episode as much as we do.
