The delivery of services to people with a mental illness has long been acknowledged as a challenge by both government agencies and non-government organisations (NGOs). This is especially relevant to the social security system, which delivers payments and services to more than six million Australians every year, many of whom are affected by mental illness.

The term ‘falling through the cracks’ is used here to describe the risks presented by not implementing best practice in our social security system when it comes to servicing people with a mental illness.

The Ombudsman’s office has received complaints from people living with a mental illness who have experienced difficulty when interacting with Centrelink and employment service providers (ESPs). Some of these problems include:

• being required to comply with payment conditions that do not allow for the limitations posed by the customer’s illness
• being subjected to communication or claim arrangements that do not take into account the barriers posed by the illness
• being required to re-tell their ‘story’ to each new person they encounter in the system.

Our investigation has revealed that it is clear the agencies involved do focus, wherever possible, on providing discretion for staff to adjust requirements of customers who require flexibility as a result of a mental illness. It is our experience that, in many instances, staff in the social security system do a good job of using the flexibility in the system (or moderating expectations) to achieve outcomes for customers.

However, we have identified four key areas where procedures and policy could be further developed to ensure staff are encouraged and equipped to better match services and payments to customer circumstances and reduce distress and disadvantage. Specifically, we suggest:

• greater consideration of a customer’s barriers to communication and engagement
• increasing training and opportunities for staff to identify customers with a possible mental illness
• encouraging customers to disclose a mental illness or associated difficulties with communication
• more transparent recording of information about a customer’s illness or barriers.

This report makes 11 recommendations to address these issues.

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