Working New Zealand: Work Focused Support Fact Sheet

Aligning and updating benefit provisions

26 October 2006

A number of changes will be made to the Social Security legislation to align, update and simplify benefit provisions.

April 2007 - aligning eligibility criteria

The changes include:

• simplifying and aligning the residency eligibility requirements across all benefits to two years. Refugees with permanent residence will be exempt from the two year residency requirement
• amending the eligibility criteria for Domestic Purposes Benefit and Widow's Benefit to remove the requirement that the child be born in New Zealand, and to enable people who are caring for a dependent child not their own to qualify in some instances 
• extending the eligibility for Domestic Purposes Benefit for the care of the Sick or Infirm to include people who would otherwise require care in a community residential service, rest home or equivalent levels of care in the community
• reducing the current maximum income stand-down period to two weeks for all main benefits
• extending the current exemption from the stand-down for people applying for Domestic Purposes Benefit who have entered a refuge following a breakdown in their relationship. The exemption will be extended to apply to people applying for Unemployment Benefit, Invalid's Benefit, Sickness Benefit and Independent Youth Benefit in the same circumstances.
  

July 2007- aligning payments

The changes include:

• aligning the current payment periods so that all benefits are paid in respect of a seven day pay period
• ensuring that all new benefit applicants initially have weekly income assessments, with a move to annual assessment possible in some circumstances
• weekly payment of all benefits.
  

September 2007

Aligning benefit rules

• aligning change-in-circumstances rules for sole parents so that they can continue to receive a benefit for up to eight weeks in some situations (the current rules apply to Domestic Purposes Benefit and Widow's Benefit only).

Enhancing expectations

The changes include:

• introducing a new pre-benefit activity requirement for applicants for Unemployment Benefit and enhancing the activity requirements for recipients
• the current age-related work test exemption will be removed for Unemployment Benefit clients aged 60 years and over, and all partners of beneficiaries from age 55 years and over, meaning they will have work test expectations
• introducing a part-time work test for partners of beneficiaries who have a youngest child aged six years or over (currently those with a youngest child over the age of 14 years have a full-time work test)
• introducing planning and activity requirements for Sickness Benefit and Invalid's Benefit clients (unless exempt).