Sickness Benefit Factsheet

Sickness Benefit (SB) is a weekly payment for people who aren't currently working, or are working less hours, because they are temporarily sick, injured, disabled or pregnant.

Why are we changing SB?

Many people on SB are capable of working part-time and research shows recovery is generally faster and more successful if people can work while recovering.

Long-term benefit dependency has negative impacts both for society and for the people concerned.  The new approach will focus on what people can do rather than what they can't do.

What's new for people on SB?

• The medical certificate used for applications for SB and Invalid's Benefit will be reviewed to ensure it captures more relevant information about the person's capacity for work and ensures people receive the right benefit for their circumstances.
• Currently, people on SB must provide medical certificates to confirm their eligibility after four weeks on benefit, and then every 13 weeks after that.
• An additional medical reassessment will now be required eight weeks after the start of a person receiving SB. This will allow us to gather more relevant information about the person's progress and their ability to re-enter the workforce.
• Everyone receiving SB for more than 12 months will have a compulsory review by their case manager and second opinions sought when appropriate.
• From May 2011 Sickness Beneficiaries who have been assessed as being able to work part-time (15 to 29 hours a week) will have an obligation to look for suitable part-time work.
• Case managers will be able to require a second opinion from a designated doctor before making a decision to apply part-time work obligations.
• Beneficiaries will lose 50 percent of their main benefit the first time they do not comply with their work obligations such as failing to attend a scheduled job interview. If this happens, they will continue to receive supplementary assistance. On second failure the main benefit and supplementary assistance will be suspended and on the third time cancelled.
• The SB 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.

What do the part-time work obligations involve?

Under the new part-time work obligations people on SB who have been assessed as capable of working part-time will be required to:

• be available for, and looking for, suitable part-time employment
• accept any offer of suitable part-time employment
• attend interviews for suitable part-time employment
• undertake planning for employment
• undertake and participate in employment-related training, work experience and work assessments
• report progress on their compliance with their work-test obligations as often as required.

Who's eligible for SB?

The eligibility criteria for SB remain the same. A person may be eligible for SB if they are sick, injured, disabled or pregnant and if they:

• have had to reduce their hours
• have had to stop working
• are not working, or are working part-time, and are not able to look for and do full-time work
• are willing to undertake full-time work, but are limited in their capacity to look for or be available to work, or to work full-time.

They must be 18 years old or over (or 16-17 if they are married or in a civil union or a de facto relationship and have one or more children to support).

They must also:

• be a New Zealand citizen or permanent resident.
• have lived in New Zealand for at least 2 years at any one time since becoming a New Zealand citizen or resident (unless the person is a refugee).
• also normally live in New Zealand and intend to stay here.

Applications must always be supported by a medical certificate from a medical practitioner, dentist or midwife, as appropriate.

How much do people receive on SB?

The amount someone on SB 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 accommodation costs. These amounts vary based on locality and individual costs.

A single person renting in Auckland on SB, with no children, could receive approximately $305 per week including Accommodation Supplement and other allowances (e.g. Disability Allowance).

A single person renting in the South Island on SB, with no children, could receive approximately $260 per week including Accommodation Supplement and other allowances (e.g. Disability Allowance).

Important statistics about SB

• There were 58,000 working age New Zealanders on SB in February 2010. This is up from 50,000 at the same time in 2009 - an increase of 16 percent.
• 9,000 current SB recipients (15 percent) have been assessed as capable of some part-time work or light duties.
• Over one in four (27 per cent) are Māori, and 6 per cent are Pacific people.
• Two in five (41 per cent) have psychological or psychiatric conditions (e.g. schizophrenia or other mental illness, or stress or depression).
• Just over half of all people receiving SB had been receiving it for less than one year, and about one third had been receiving SB for six months or less.