The aim of this Bill is to repeal and replace the Social Security Act 1964 and the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 with an “improved legislative structure” and to reduce “the level of detail in primary legislation to enhance clarity, coherency, and consistency” and to make some changes to the law “to support service delivery.” [1]
Amendments are also made to the New Zealand Superannuation and Retirement Income Act 2001. This Bill proposes amendments to Part 1 of that Act. “The amendments are to existing provisions in the Act, and are consequential on the provisions of the Bill. All are policy neutral and merely to reflect the changes in the rewriting and replacement of the Social Security Act 1964. They primarily update references in the Act to the 1964 Act, and replace them with references to corresponding provisions in the replacement rewritten Social Security Act. Some of the amendments relate to orders that are revoked unless confirmed by Act of Parliament. These amendments (replacing sections 15(5) and 30(5) with new sections 15(5) and 30(5)) are more extensive, but are also policy neutral and only as a consequence of the replacement rewritten Social Security Act.” [2]
“The Bill aims to improve accessibility by setting out clearly the existing requirements for eligibility, obligations, sanctions, and rights to review and appeal decisions, and how assistance is delivered. It also shifts the residential care and disability support services provisions into a stand-alone Act so that they are easier to access by or for people requiring that care or those services.” [3]
Please note that Schedule 11 of the Bill is headed “Identified changes in legislation” and states that “each identified change is a significant difference in substance or wording between the old law and the new law”.
The Bill is a rewrite. The following matters appear to be the most important changes which are more than drafting matters
The Bill introduces a principles section which aims at more support for “investing in better long-term outcomes for people receiving or needing financial assistance through the social security system” to ensure that “decisions on how services are delivered are transparent.” [4]
In particular, the Bill provides that every person performing or exercising a duty, function, or power under the Bill must have regard to the following general principles:
The Bill replaces the existing orphan’s benefit and unsupported child’s benefit with the supported child’s payment. This payment will continue to support children and young people who have no parental support. The Bill provides that single people paid the supported child payment for care of a child under the age of 14 years can be paid a single rate of sole parent support and also have that child taken into account when work obligations are set (Part 2, Subpart 5, Clauses 42-44; Part 3, Subpart 3, Clauses 95-112).
The Bill renames emergency benefit as the exceptional circumstances benefit and the Bill introduces the discretion to apply work preparation, part-time work obligations, or full-time work obligations, and associated sanctions, to a person receiving the exceptional circumstances benefit, if MSD determines the person has capacity. This Bill also confirms that the maximum rate of the benefit must not exceed that of the equivalent main benefit in each case, to clarify that the higher rate of New Zealand Superannuation or Veteran’s Pension must not be paid (Part 2, Subpart 8, Clauses 59 and 60).
This Bill introduces a new power to make regulations specifying groups of beneficiaries whose benefit instalment can (with, or without, good cause shown case-by-case) be redirected without their consent (Part 8, Clause 421).
This Bill repeals the provision preventing both parents in split custody care situations (where both parents care for at least one child each, rather than sharing the same child’s care between them) from receiving sole parent support. Instead, both parents will be eligible for sole parent support and subject to the obligations and sanctions of that benefit (Part 2, Subpart 3, Clauses 29-32).
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