Closing the coverage gap

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Challenges

Many fall through the gap

Policy-makers and social security administrations must reach the groups most affected by access inequalities. They are:

• the self-employed
• rural workers
• those active in the informal economy
• women

Barriers to access are multiple

Efforts to extend coverage can be held back by:

• the health and development of the national economy
• political instability
• the maturity and legal scope of a social security system
• the nature of the labour market
• the size of traditional or rural economies compared to the formal, wage-based economy
• the effectiveness of the tax system and contribution collections
• levels of urbanisation
• geography

Success relies on taking a joined-up approach

Contributions and tax financing must be coordinated in a longer-term strategy. And contributions need to be paid regularly, if benefits are to be adequate and reach more people.. Strong institutions are needed to enforce the process.

Attitudes must change too

It is vital to understand the motivation that lead workers to choose to contribute. And to combine this with a strategy that promotes a ‘social security culture’.

Responses

Governments and administrations are leading the way

Governments have to decide on the kind of society they want to build. But it will not happen unless there is appropriate investment in administrative capacity, infrastructure, technology and people.

Innovating to enable access

From one-stop shops to mobile cash transfers, there are more ways than ever to access protection. Administrations are developing new ways to finance benefits too.

Inequalities across the life course

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Challenges

Global trends are jeopardising progress

Among the factors causing concern are:

• the growth in non-standardised employment
• stagnating wages and rising income inequality
• changes to family structures
• high levels of unemployment
• footloose capital
• changing migration patterns

Social security systems are under pressure

In some countries, political and financial challenges threaten to scale back the adequacy of programs. For example, with pensions we have seen a tightening of the link between contributions paid and benefits received. This shift could weaken the redistributive role of social security.

Many workers face an uncertain future

Developments in the labour market and employment patterns are making jobs less secure. And there are now many different patterns of employment. As a result, many workers are not able to contribute fully to social security programmes and accrue adequate benefits.

The income gap is widening

Since the 2007-08 financial crisis, many OECD countries have seen rising levels of inequality and poverty. And wealth is increasingly concentrated in the hands of the few.

Responses

Getting everyone on board

All social security systems must become more responsive to people’s needs throughout their lives. That must include those in the middle classes, to make sure there is support from all levels of society.

Strengthening social investment

In addition to protection for all, social security must invest in individual capacities. Measures that promote social investment should be strengthened and made more specific to vulnerable groups.

Giving people more control

Policy changes are moving the focus towards helping people to help themselves. For example, by helping people participate in labour markets and promoting independent living.

Conditional cash transfers encourage participation

From young people to pensioners, innovations like conditional cash transfers are helping to build local economies and improve access to education, nutrition and health care.

Population ageing

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Challenges

Imbalance between income and expenditure

As populations age, social security and healthcare are more in demand. At the same time, contribution income and other sources of financing will decline.

Existing schemes must adapt

From family structures to working patterns, every aspect of our lives is changing. Yet many retirement schemes, for example, are still designed for steady, linear careers and nuclear families.

Keeping the balance between generations

Social security systems must adapt to the changing needs of older people. But this cannot be at the expense of younger generations.

Changing lifestyles bring new health risks

Chronic health conditions are putting healthcare services under increased pressure. New responses are needed, if those services are to remain accessible and sustainable. Care challenges are also likely to intensify, both for family carers and formal systems.

Responses

Focusing on prevention

People must be encouraged to take more responsibility for their old age. A lot can be done with information that helps them to better manage their health, money and work, and plan ahead for retirement.

Keeping people in work

Many countries have increased the retirement age, and guarantee a minimum pension income from that point. Investment in return to work schemes and education is also helping to keep people active and earning, and reduce the risk of exclusion and poverty. Reduction in barriers to continued labour participation and promotion of age-friendly workplace.

Tackling falling populations

The population of some countries is not just aging, but also shrinking, especially in the absence of positive net migration. Progressive family policies, like financial support for childcare, can be observed in this context.

Taking care of the carers

Developments in health care systems include streamlining to increase efficiency and a greater focus on staying in good health. Services are being adapted to address chronic conditions. And unpaid carers are increasingly receiving contribution credits, making them more secure when they retire.

Employment of young workers

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Challenges

Not enough new jobs are being created

Jobless growth is causing concern around the world. Regions with a younger population are seeing their young workers either turn to the informal economy or emigrate.

Benefits favour those in steady employment

Typically, workers part-fund their benefits. These contributions are often essential to a programme’s continued success. But the approach penalises those who have been in and out of work. This is also the case with pensions, where the link between contributions and benefits is tightening.

Unemployment protection coverage is low

Globally, just over one in ten workers has access to some form of insurance based unemployment protection. While new systems are now being built, young workers often cannot access protection due to a lack of previous contribution payment.

Responses

Joining up the services

Public institutions, employers and workers’ organisations need to work together support employment. Developed economies are tackling unemployment and poverty through programmes that combine:

• cash benefits
• training
• negative income tax instruments
• progressive tax systems

Making responses faster, and more targeted

Income protection schemes are essential for getting people into employment. To be effective, they must consider the needs of different workers, especially younger women and men. These young people will get into work quicker if they are reached in their first months of unemployment, ideally as part of a youth guaranty scheme securing employment or training.

Giving young people a helping hand

Younger workers often need help in building their confidence and gaining experience. Measures like skill training should take gender into account, too.

Apprenticeship schemes are also lowering unemployment rates among young workers, helping to bridge the gap between education and work.

Labour markets and the digital economy

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Challenges

Social security systems must evolve to meet new risks

Social security must keep pace with change. The challenge is to prepare systems for the digital economy of the future, and reflect its:

• societal structures
• labour markets
• labour relations
• production technologies

There is even greater change ahead

The digital economy could bring stronger economic growth and build new connections between people. However, there could also be more critical outcomes such as:

• job losses
• increasingly fragmented labour markets
• the need to adapt labour codes to new forms of work
• poorer working conditions in some sectors
• general acceptance of ‘atypical’ employment

New employment relationships put workers at risk

Many people will work on demand, providing services to clients through mobile apps and third-party platforms. These relationships are often informal, and do not take health and safety or social security into account. They also jeopardise the traditional funding of social protection programmes.

Responses

Closing legal loopholes

Some countries have taken the first steps to protect workers’ rights and benefits in the new economy by reviewing regulatory codes. Relationships are being formalised, and self-employed workers made to pay social security contributions.

Preparing for an uncertain future

Policy-makers and administrations consider the impact of digitalization and new technical solutions on social security. That includes thinking about what benefits and services people will need, and how they will be financed.

Keeping the human touch

Although the nature of work is changing, some tasks will always be better done by people. That goes for social security services too. New digital solutions are helping to improve the delivery of services, but it is doubtful they will replace people.

Health and long-term care

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Challenges

Inequality has a direct impact on health

In all societies, inequality and poverty directly affect people’s health. Lifestyle and well-being are often linked to household income levels, with smoking, excessive drinking and obesity presenting serious challenges.

Counting the costs of NCDs

By 2012, NCDs were responsible for 68 per cent of deaths worldwide. The majority were in low- and middle-income countries. Many patients have more than one health condition that needs treatment. While medical costs are expensive, so are the indirect ones, including absence from work and lost productivity.

The nature of disability is changing

Greater awareness of mental health disorders has led to more people being assessed with mental conditions. The number of cases is likely to rise, especially among younger people and women. And they will need a heavily tailored response.

Who will look after the elderly?

More than half of the world’s older people lack quality long-term care. Studies suggest there is a shortfall of around 14 million trained carers worldwide. Meanwhile, changes in family structures mean that traditional support networks cannot be relied on.

Responses

Taking a coordinated approach

Social security administrations are already focusing on preventive measures, targeting services and working with other stakeholders.

Encouraging behavioural change

The rise in NCDs calls for changes at societal level. Public policy must encourage people to make better-informed lifestyle choices. Regular health check-ups are an effective way to assess risks and provide health education.

Supporting other initiatives

While social security administrations cannot solve these challenges alone, they can help support:

• employers’ efforts to improve health and well-being
• the employment of people with mental health issues and learning difficulties
• new legal provisions and financing for long-term care
• the move towards flexible pensionable ages

New risks, shocks and extreme events

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Challenges

Crises are on the rise

Unforeseen events force immediate responses and leave little time to plan. And they are happening more and more often. For example, there were a record 198 natural disasters in 2015.

Epidemics like Ebola, and sudden impact events like antibiotic resistance, are also causing concern.

New situations demand innovative responses

Social security administrations are being asked to respond to increasingly complex situations. For example, climate change, natural disasters and depleted natural resources can bring:

• flooding
• water shortages
• changing land-use patterns
• increased pressure to migrate
• depleted food supplies
• heightened probability of disease

Geo-political uncertainty is a growing concern

It is estimated that there are over 20 million refugees worldwide. Many have been driven to leave their homes by conflict and political upheavals. Civil movements are also growing in influence, especially through the use of social media.

Responses

Planning for the unexpected

Good communication lines must be put in place. And risk management strategies must go beyond assessing conventional risks to take new threats into account. These plans should look at how programmes can be adapted and resources diverted to give immediate support after disasters.

Encouraging new behaviours

Some countries have schemes that pay people to give up harmful ecological activities, like illegal logging. Others have created jobs in rural areas that make improvements to the environment.

Supporting solutions to societal challenges

In 2015 several European countries opened their borders to massive refugee streams. Since then we have seen significant levels of cooperation between authorities in processing and integrating refugee populations.

Better communication with the public

Social security administrations must be quick to share facts and respond to change. Mass communication channels like radio and TV can also be used to get information out quickly during a crisis.

Protection of migrant workers

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Challenges

A dilemma for their home country

The money that migrants send home is important for domestic economies. But this benefit is often out-weighed by problems caused by their absence. For example, many women leave their families to work as domestic helpers or carers, creating a care-deficit at home.

Lack of protection

In the absence of specific regulations or agreements, migrant workers remain unprotected. As a group, they are often difficult to cover.

Systems struggle to keep up

Migrant workers might stay in the host country for only a short time, be active in the informal economy for some of it, and change jobs often. Keeping records up to date can be a challenge, especially if they are still on paper.

It is also difficult to ensure continuation of coverage across countries when they have different systems and processes.

Responses

Change from the top down

Countries committed to extending coverage are adapting their:

• social security legislation
• benefits
• contribution structures

Those with large migrant populations have also created digital systems to manage social security entitlements. One innovative approach is to register expatriate workers as soon as they arrive in the country.

Making benefits portable

Countries are working together to strengthen processes and share good practice. Cross-frontier agreements are helping to:

• confirm the identity of migrant workers
• check that they are eligible for benefits
• calculate their entitlements
• make sure those benefits are portable

Spreading the word

Migrant workers need to be told of their rights and responsibilities. That means finding the best places to reach them, and speaking to them in their own language.

The technological transition

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Challenges

Quality and cost-effectiveness can be hard to control

Large technology projects face some very real risks including:

• a shortage in skilled workers
• delays
• underestimated costs and overspends

The foundations are often not in place

The success of these projects relies on the potential for different technologies to link up and exchange data. Yet common standards are often incomplete or missing.

Cybercrime is a global problem

The threat of hacking and data theft is an ever-present concern. Organisations must manage and protect personal information in a reliable and consistent way.

Responses

Creating new possibilities with technology

Technology brings many practical benefits, like supporting decision-making, cutting down on mistakes and identifying fraud. It also opens the way to do things differently. By sharing information and systems, administrations can rethink their structures and processes.

Extending coverage

For those already covered by the social security system, technology is making it easier than ever to stay informed and in touch. It is also helping to extend coverage to people who have previously been hard to reach, for example through mobile payment services.

Targeting services

Advanced data processing and data analysis technologies are helping to create more accurate client profiles.

They are also letting administrations improve processes by increasing their ability to perform reliable validations, controls and calculations.

Teaching staff new skills

Taking a smart, open-minded approach to technology can create new opportunities for staff as well as clients. People are needed not just to manage these new systems, but also to identify new processes and services that could take advantage of technology.

Higher public expectations

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Challenges

Under pressure to deliver

Many administrations have to cut costs while:

• improving and integrating services
• making them more targeted
• getting better feedback
• gaining trust from the public

Keeping data safe is crucial

People will have to share their personal details, for systems to truly offer a more personalised experience. Administrations must then make sure they carefully control and monitor access to that information.

The dangers of getting it wrong

Administrations risk damaging their reputation if the public feels that their service is not good enough or the system itself is unfair.

Responses

Getting to know the people using a service

Meeting public expectations means getting good information about the people using a service. That can be gathered through data from an online platform, or through surveys, polls, conversations and consultations.

Improving processes and performance

Employees’ performance can be improved through training, recognition and rewards. Business processes can also be revamped with:

• lean management techniques
• increased digitalisation
• training and knowledge management
• teleworking
• e-government applications

Going electronic, mobile and online

Apps can make services more accessible through mobile. Web platforms are helping people submit forms and documents electronically. Websites are making service information more available to the general public. They all help to put people at the centre of a social security system.

Sharing good practice

Many administrations are being encouraged to embrace change through efficiency goals and increased integration. As they share knowledge and experience they are helping to create a culture of innovation. Progress needs to be measured, and plans tweaked as they go. And the public must be taken on this journey too, so that they understand what is been achieved, and what is still to do.