DLP questions Cost of Living Cash Credit funding, demands safeguards

The Democratic Labour Party is demanding “airtight safeguards” to protect the National Insurance and Social Security Service (NISSS) from being used as a government spending vehicle, warning that the new Cost of Living Cash Credit could put the collective savings of workers at risk without clear reimbursement guarantees.

 

While welcoming the relief, DLP chairman Senator Ryan Walters, who is also shadow minister on Finance and Economic Affairs, issued a statement on Thursday stressing that the government’s reliance on the national insurance scheme to facilitate social policy could put the “collective savings of Barbadian workers” at risk.

 

The Cost of Living Cash Credit was designed as a strategic intervention to assist approximately 60 000 citizens, primarily targeting pensioners and vulnerable households. The programme provides a monthly stipend of $100 for one year to help mitigate the impact of persistent global inflation and the rising cost of domestic goods.

 

By utilising the NISSS as the administrative hub, the government aimed for a seamless delivery system to ensure funds reached those in need without the delays often associated with new bureaucratic frameworks.

 

“The announcement of government’s Cost of Living Cash Credit has, understandably, been met with a sense of relief by many Barbadians,” Senator Walters noted.

 

“The Democratic Labour Party acknowledges as necessary and timely any effort to cushion the most at-risk in our society.”

 

Despite this support for the programme’s intent, Senator Walters expressed deep reservations about the lack of clarity regarding reimbursement. He highlighted a troubling precedent with last year’s Solidarity Allowance, pointing out that the public still lacks a comprehensive accounting of whether those funds were ever repaid to the NIS by the central government.

 

“This raises a fundamental question: is government fully reimbursing the NIS for these payments?” the opposition senator asked.

 

“The NIS is not a general revenue account. It is the collective savings of Barbadian workers, intended to secure pensions and benefits for generations.”

 

The DLP’s concerns are magnified by the current financial state of the NISSS. The fund has faced a series of shocks over the last decade, including the 2018 debt restructuring exercise and the economic fallout of the COVID-19 pandemic.

 

Sen. Walters also drew attention to the continued delay of the NISSS actuarial review, which was due in 2025. This review is the primary mechanism for assessing if the fund can meet its future obligations to retirees.

 

“This report is not a routine document; it is one of the most critical financial health checks for the Scheme,” Sen. Walters explained. “In the absence of this report, Barbadians are effectively being asked to trust that the system remains stable, without being given the evidence to support that confidence.”

 

The DLP called  for a defined and publicly communicated mechanism for fund transfers between the government and the NISSS. The party chairman insisted that supporting the vulnerable should not come at the expense of the fund’s integrity, demanding “airtight safeguards” to ensure the burden of social support remains with the government.

“It requires transparency, timely reporting, and firm guarantees that the burden of social support is carried by government, where it belongs, and not quietly shifted onto the shoulders of workers,” Sen. Walters concluded.

 

(RR)