Seniors fact sheet

Future Focus is a package of welfare reforms designed to get working-age people back into work as quickly as possible. It comes into effect from 27 September 2010 and includes changes to abatements, hardship assistance and childcare assistance that may affect some seniors.

Abatement thresholds will be increased for people on New Zealand superannuation and Veteran's Pensions with non-qualifying spouses who claim the married rate. This will ensure that seniors are better off from any part-time work they do.

There's also a new approach to hardship payments - the one off payments by Work and Income for essential and immediate costs including power, food and clothing. The new approach is about making sure that people who apply for these payments get the support they require and will affect those seniors who apply for this extra assistance.

Childcare Assistance provides financial support for childcare and out of school care. Childcare assistance has become less targeted over the last five years but under Future Focus the thresholds will return to 2008 levels. Again, some seniors may be affected by these changes.

How will abatement changes affect some seniors?

Abatement means people's payments are reduced as they start to earn income from work.

Abatement affects New Zealand Superannuation and Veteran’s Pension clients with non-qualifying spouses who claim the married couple rate. At present, their payment is reduced by 70 cents for every dollar earned over $80 a week.

From 27 September 2010, New Zealand Superannuation and Veteran’s Pension clients with non-qualifying spouses who claim the married couple rate will be able to earn up to $100 before their payment is abated.

For more information about abatement changes, see the Abatement factsheet.

How will seniors be affected by changes to hardship assistance?

Seniors will be treated in the same way as working age clients.

Depending on circumstances they may be invited to attend a more comprehensive interview about their circumstances and entitlements at their first or subsequent applications to ensure they are receiving the right assistance.

They may also be required to undertake budgeting advice.

For more information about hardship assistance, see the Hardship Assistance factsheet.

Why are seniors affected by changes to childcare assistance?

Some seniors caring for children or grandchildren may be affected by changes to childcare assistance. The changes will mainly affect two-earner couples on higher incomes.

Anyone who is receiving Childcare Assistance, or who has received it in the year to 27 September 2010, will continue to receive Childcare Assistance under the old income thresholds for up to three years if they still meet other qualifications.

For more information about childcare assistance, see the Childcare Assistance factsheet.

Key facts

• At least 3,200 older people will be up to $14 a week better off, following the abatement changes.
• There are another 9,600 older people who would benefit from the abatement changes if they were in part-time work.
• Around 26,220 New Zealand Superannuation and Veteran’s Pension clients received hardship assistance in the year to May 2010.