Invalid's Benefit

Invalid's Benefit (IB) is a weekly payment for people who are permanently and severely restricted in how much work they can do because of sickness, injury or disability. People with long-term conditions that severely restrict their capacity to work will continue to receive IB under Future Focus.

What's different about IB?

• The medical certificate used for applications for Sickness Benefit (SB) and IB will be reviewed to ensure it captures more relevant information about the person's capacity for work and ensures people are receiving the right benefit for their circumstances.
• The new medical certificate will be in place for 27 September 2010. New applicants will have medical certificates reviewed carefully to check which benefit is appropriate. Case managers will apply the existing eligibility criteria rigorously to ensure IB is targeted to the right group - people whose capacity to work is permanently and severely restricted.
• People who are expected to be able to work part-time in the next two years will receive SB rather than IB. On SB they will face more frequent reviews of their condition and a strong expectation that they will get back into work when they can.
• There is no work testing for people on IB, but there will be an ongoing focus on what people can do rather than what they can't do.
• People on IB who choose to work part-time will be able to earn more before their benefit is affected. The abatement free threshold will increase from $80 to $100 per week and the part-time abatement threshold will increase from $180 to $200 so people can earn more before their benefit is affected. Personal income exemption guidelines have not changed.
• The IB rate will increase in line with the Consumer Price Index each year. This will be enshrined in legislation, rather than occurring by convention, as it currently does.

Who's eligible for IB?

A person may be eligible for IB if they are permanently and severely restricted in their capacity to work.  They may also get IB if they are totally blind.

Eligibility focuses on how the person's condition affects their capacity to work.

A person must also:

• be 16 years old or over
• be a New Zealand citizen or permanent resident
• have lived in New Zealand for at least two years at any one time since becoming a New Zealand citizen or permanent resident (unless the person is a refugee)
• normally live in New Zealand and intend to stay here
• unable to regularly work 15 hours or more a week in open employment because of a sickness, injury or disability which is expected to last at least two years.

How much to people receive on IB?

The amount someone on IB receives depends on many factors, including their age and their living circumstances. The table below shows the base rates by age breakdown from 1 April 2010:

In addition to the main rate beneficiaries may also qualify for additional assistance, for example, accommodation costs. These amounts vary based on locality and individual costs.

A single person renting in Auckland on IB, with no children, would receive approximately $360 per week after Accommodation Supplement and other allowances (e.g. Disability Allowance).

A single person renting in the South Island on IB, with no children, would receive approximately $310 per week after Accommodation Supplement and other allowances (e.g. Disability Allowance).

Important statistics about IB

• At the end of February 2010, there were 85,000 working age people receiving IB

In this group:

• nearly three in four (73 per cent) were aged 40 years or over, including over one in three (35 per cent) who were aged 55 years or over
• over one in four (29 per cent) had psychological or psychiatric conditions (e.g. schizophrenia or other mental illness, or stress or depression)
• 13 per cent had an intellectual disability
• Over one in four (29 per cent) people on IB have received it continuously for 10 years or more.