Temporary Additional Support and Special Benefit

Temporary Additional Support

Temporary Additional Support was introduced from 1 April 2006, and is used as a last resort to help clients meet regular essential living costs which can't be met from their income or from other resources. This assistance is available for a maximum of 13 weeks, but may be approved for a shorter period. Clients with an ongoing deficiency of income may reapply after receiving it for 13 weeks.

To receive Temporary Additional Support, clients must be aged 16 years or over and meet asset and residency tests. In addition, clients must:

• ensure that they are receiving all other assistance available to them
• show that they face a deficiency of income after having taken reasonable steps to reduce their costs and increase their income.

Temporary Additional Support is available to cover essential and unavoidable ongoing regular costs, such as:

• purchase of essential household furniture or appliances
• telephone rentals
• repayments for previously purchased vehicles in situations where there is no suitable public transport available and the vehicle is required for employment reasons or because of disability in the family
• employment-related costs (eg childcare, public transport or vehicle costs)
  
• accommodation costs that are not covered by the Accommodation Supplement
  
• health and disability costs where costs are not met through the Disability Allowance or where clients or their families are not eligible for the Disability Allowance.

Some of the above items have limits on the number of items which can be purchased using Temporary Additional Support and on the payment amounts made under that programme.

Special Benefit

Prior to 1 April 2006, a Special Benefit could be paid to people receiving main benefits or to other low-income earners. To receive one, clients had to have:

• a deficiency between their ongoing income and their costs
• individual circumstances that warrant receiving a Special Benefit.

From 1 April 2006, Temporary Additional Support replaced new Special Benefits. Special Benefits paid after this date were granted either:

• before 1 April 2006, or
• (after 1 April 2006) to maintain Special Benefit payments to clients who continued to receive a Special Benefit after having had their entitlements to assistance reviewed.

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Trends in the number of clients receiving Temporary Additional Support or Special Benefit

The combined number of clients receiving Temporary Additional Support or Special Benefit has increased over the last year following decreases in the previous two years (see table 4.29). The increase over the last year reflects at least in part a combination of:

• increased numbers receiving Invalid's Benefits
• a slowing in the reduction in numbers receiving carer's benefits, whose users are most likely to receive Special Benefits or Temporary Additional Assistance.

Temporary Additional Support accounted for 58% of the combined assistance being paid in 2008, compared with 9% in 2006 (see table 4.29). This reflects the transition toward delivering this assistance to most clients through Temporary Additional Support rather than through Special Benefits.

Table 4.29 Trends in the number of clients receiving Temporary Additional Support or a Special Benefit

Type of hardship assistance received at the end of June	Clients receiving Temporary Additional Support or a Special Benefit1
	2004 Number	2005 Number	2006 Number	2007 Number	2008 Number
Temporary Additional Support	0	0	4,555	14,834	24,466
Special Benefits2	51,451	53,255	44,778	26,085	18,048
Total	51,451	53,255	49,333	40,919	42,514

Notes:

1. Number of clients recorded in SWIFTT as receiving Temporary Additional Support or Special Benefits at the end of June.
2. Special Benefits shown are restricted to ongoing (weekly) Special Benefits, and exclude Special Benefit lump sums.

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Trends in the proportion of people aged 18 years or over receiving a Special Benefit or Temporary Additional Support

The proportion of all people aged 18 years or over in the New Zealand population who were receiving a Special Benefit or Temporary Additional Support at the end of June has remained stable over the last year, after decreasing for the previous two years (see figure 4.14). This reflects both decreased numbers receiving carer's benefits and increases in assistance with childcare costs available under Working for Families. Since 2004, the proportion of people aged 25 years or over receiving this assistance has tended to fall with age.

figure 4.14 Trends in the proportion of people aged 18 years or over receiving Temporary Additional Support or a Special Benefit, by age

Note

1. Proportion shows:
   1. number of people in each age group recorded in SWIFTT as receiving a Special Benefit or Temporary Additional Support at the end of June, divided by
   2. Statistics New Zealand final estimate of the resident population in age group at the end of June.

See table A3.21 for a summary of the SWIFTT data underlying figure 4.14

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Trends in the number of clients granted Temporary Additional Support or Special Benefit

The combined number of clients granted Temporary Additional Support or Special Benefit has increased over the last two years (see table 4.30). Temporary Additional Support accounted for a very large majority of the combined assistance granted over the last two years, reflecting restricted eligibility for Special Benefits from 1 April 2006.

The larger number of Temporary Additional Support grants in the last two years (compared with numbers of Special Benefits granted between 2003/2004 and 2004/2005) (see table 4.30) reflects the shorter period which Temporary Additional Assistance is granted for.

Table 4.30 Trends in the number of clients granted Temporary Additional Support or a Special Benefit

Type of hardship assistance granted	Clients granted Temporary Additional Support or a Special Benefit1
	2003/2004 Number	2004/2005 Number	2005/2006 Number	2006/2007 Number	2007/2008 Number
Temporary Additional Support	0	0	5,756	64,210	113,365
Special Benefits2	72,318	72,690	57,146	7,569	3,911
Total	72,318	72,690	62,902	71,779	117,276

Notes:

1. Number of successful applications for Temporary Additional Support and Special Benefits recorded in SWIFTT during years ended June.
2. Special Benefits shown are restricted to ongoing (weekly) Special Benefits, and exclude Special Benefit lump sums.

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Trends in annual expenditure on Temporary Additional Support and Special Benefits

Decreases over the last three years in combined expenditure on Temporary Additional Support and Special Benefits (see table 4.31) reflect a combination of decreases in the number of clients receiving carer's benefits and increased assistance to low-income families available through Working for Families.

Changes before 2004/2005 in annual expenditure on Special Benefits (see table 4.31) largely reflect changes in the numbers of people receiving a Special Benefit and the rates at which Special Benefits were paid.

Table 4.31 Trends in combined annual expenditure on Temporary Additional Support and Special Benefits

Year ended June	Expenditure on Temporary Additional Support and Special Benefits1,2,3 ($m)
1995/1996	87
1996/1997	74
1997/1998	59
1998/1999	44
1999/2000	34
2000/2001	39
2001/2002	48
2002/2003	79
2003/2004	137
2004/2005	174
2005/2006	160
2006/2007	132
2007/2008	123

Notes

1. Expenditure on Special Benefits in years ended June.
2. Expenditure shown is adjusted to payment periods based on a standard 30-day month and smoothed using a two-month moving average. Special Benefits are not subject to taxation.
3. Expenditure data in this table differs from, and should not be cited as, MSD's official measure of expenditure on financial assistance provided to clients.

Monthly expenditure on Temporary Additional Support and Special Benefits shows little seasonal variation, and tends to follow patterns in the numbers of people receiving this assistance and the rate at which assistance is paid (see figure 4.15). These patterns in turn reflect factors including the numbers of clients receiving carer's benefits, increased assistance to low-income families available through Working for Families, and the replacement of new Special Benefits with Temporary Additional Support from April 2006.

figure 4.15 Trends in combined monthly expenditure on Special Benefits and Temporary Additional Support

Notes

1. Expenditure is adjusted to payment periods based on a standard 30-day month and smoothed using a two-month moving average. Special Benefits and Temporary Additional Support are not subject to taxation.
2. Expenditure data in this graph differs from, and should not be cited as, MSD's official measure of expenditure on financial assistance provided to clients.

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Trends in the number of clients receiving a Special Benefit

The number of people receiving a Special Benefit has decreased over the last three years (see table 4.32), reflecting a combination of:

• extra income available for low-income households since 1 October 2004 as a result of the Working for Families package
• the replacement of new Special Benefits with Temporary Additional Support from April 2006
• decreased numbers receiving unemployment-related benefits and carer's benefits, whose users were historically most likely to receive Special Benefits.

All Special Benefits paid after 1 April 2006 had either been granted before that date or were granted to people who had received or applied for one immediately prior to that date.

Between 2004 and 2008, there were decreases in the proportions of Special Benefit recipients who were receiving a carer's benefit (from 50% to 39%) or receiving unemployment-related benefits (from 9% to 2%) (see table 4.32). There was a corresponding increase in the proportion receiving Invalid's Benefits (from 18% to 39%). These changes reflected patterns in benefit use.

Table 4.32 Trends in the types of pension or main benefit paid to clients receiving a Special Benefit

Type of pension or main benefit paid at the end of June	Clients receiving a Special Benefit1
	2004 Number	2005 Number	2006 Number	2007 Number	2008 Number
Unemployment-related benefits2	4,514	4,015	2,417	666	265
Carer's benefits3	25,553	24,600	20,160	11,116	7,075
Sickness-related benefits4	6,536	7,736	6,496	3,270	1,839
Invalid's Benefit	9,280	11,150	10,969	8,328	7,101
Widow's Benefit	741	748	651	417	285
Transitional Retirement Benefit5	0	0	0	0	0
Emergency Benefit	833	839	765	487	251
New Zealand Superannuation	794	1,019	1,127	933	776
Veteran's Pension	2	1	0	0	0
No pension or main benefit6	3,198	3,147	2,193	868	456
Total	51,451	53,255	44,778	26,085	18,048

Notes

1. Numbers of clients recorded in SWIFTT as receiving a Special Benefit at the end of June.
2. Comprises Unemployment Benefits and Unemployment Benefits - Hardship paid to unemployed people and to trainees, and Independent Youth Benefits.
3. Comprises Domestic Purposes Benefits - Sole Parent, Domestic Purposes Benefits - Care of Sick or Infirm, Domestic Purposes Benefits - Women Alone and Emergency Maintenance Allowances.
4. Comprises Sickness Benefits and Sickness Benefits - Hardship.
5. The phasing-out of this benefit was completed on 1 April 2004.
6. Includes clients receiving an Orphan's Benefit or an Unsupported Child's Benefit.

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Trends in Special Benefits granted

Over the last two years, around 25% of clients granted a Special Benefit were not receiving any pension or main benefit, while around 20% were receiving a carer's benefit (see table 4.33). Grants of Special Benefits since 1 April 2006 were administrative transactions which maintained Special Benefit payments to clients who continued to receive a Special Benefit after having their entitlements to assistance reviewed.

Table 4.33 Trends in the types of pension or main benefit paid to clients granted a Special Benefit

Type of pension or main benefit paid when Special Benefit granted	Special Benefits granted1
	2003/2004 Number	2004/2005 Number	2005/2006 Number	2006/2007 Number	2007/2008 Number
Unemployment-related benefits2	13,722	13,521	10,549	1,200	412
Carer's benefits3	29,522	26,203	19,137	1,545	789
Sickness-related benefits4	11,671	13,254	10,939	1,121	501
Invalid's Benefit	7,239	7,725	6,224	1,178	974
Widow's Benefit	785	634	488	56	28
Transitional Retirement Benefit5	36	0	0	0	0
Emergency Benefit	1,309	1,356	1,102	157	44
New Zealand Superannuation	750	905	887	341	242
Veteran's Pension	4	2	4	0	0
No pension or main benefit6	7,280	9,090	7,816	1,971	921
Total	72,318	72,690	57,146	7,569	3,911

Notes

1. Numbers of successful applications for Special Benefits recorded in SWIFTT during years ended June.
2. Comprises Unemployment Benefits and Unemployment Benefits - Hardship paid to unemployed people and to trainees, and Independent Youth Benefits.
3. Comprises Domestic Purposes Benefits - Sole Parent, Domestic Purposes Benefits - Care of Sick or Infirm, Domestic Purposes Benefits - Women Alone and Emergency Maintenance Allowances.
4. Comprises Sickness Benefits and Sickness Benefits - Hardship.
5. The phasing-out of this benefit was completed on 1 April 2004.
6. Includes clients receiving an Orphan's Benefit or an Unsupported Child's Benefit.

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Trends in the number of clients receiving Temporary Additional Support

In 2007 and 2008, around 40% of the clients receiving Temporary Additional Support were being paid a carer's benefit, while between 22% and 26% were receiving a sickness-related benefit (see table 4.34).

Table 4.34 Trends in the types of pension or main benefit paid to clients receiving Temporary Additional Support

Type of pension or main benefit paid at the end of June	Clients receiving Temporary Additional Support1
	2007 Number	2008 Number
Unemployment-related benefits2	1,329	1,815
Carer's benefits3	5,791	10,106
Sickness-related benefits4	3,837	5,472
Invalid's Benefit	2,259	4,182
Widow's Benefit	149	287
Emergency Benefit	246	318
New Zealand Superannuation	312	751
Veteran's Pension	1	0
No pension or main benefit5	910	1,535
Total	14,834	24,466

Notes

1. Numbers of clients recorded in SWIFTT as receiving Temporary Additional Support at the end of June.
2. Comprises Unemployment Benefits and Unemployment Benefits - Hardship paid to unemployed people and to trainees, and Independent Youth Benefits.
3. Comprises Domestic Purposes Benefits - Sole Parent, Domestic Purposes Benefits - Care of Sick or Infirm, Domestic Purposes Benefits - Women Alone and Emergency Maintenance Allowances.
4. Comprises Sickness Benefits and Sickness Benefits - Hardship.
5. Includes clients receiving an Orphan's Benefit or an Unsupported Child's Benefit.

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Trends in the number of clients granted Temporary Additional Support

The number of clients granted Temporary Additional Support has increased over the last year (see table 4.35). This reflects both the role of Temporary Additional Support as the replacement for Special Benefit for most clients and the restricted timeframe for which Temporary Additional Support is paid before requiring review.

Over the last two years, around 35% of clients granted Temporary Additional Support were receiving carer's benefits, while around 24% were receiving sickness-related benefits (see table 4.35).

Table 4.35 Trends in the types of pension or main benefit paid to clients granted Temporary Additional Support

Type of pension or main benefit paid when Temporary Additional Support granted	Temporary Additional Support granted1
	2006/2007 Number	2007/2008 Number
Unemployment-related benefits2	9,617	12,263
Carer's benefits3	22,490	41,282
Sickness-related benefit4	16,092	27,634
Invalid's Benefit	7,437	16,524
Widow's Benefit	610	1,124
Emergency Benefit	1,230	1,860
New Zealand Superannuation	1,166	2,813
Veteran's Pension	3	3
No pension or main benefit5	5,565	9,862
Total	64,210	113,365

Notes

1. Numbers of successful applications for Temporary Additional Support recorded in SWIFTT during years ended June.
2. Comprises Unemployment Benefits and Unemployment Benefits - Hardship paid to unemployed people and to trainees, and Independent Youth Benefits.
3. Comprises Domestic Purposes Benefits - Sole Parent, Domestic Purposes Benefits - Care of Sick or Infirm, Domestic Purposes Benefits - Women Alone and Emergency Maintenance Allowances.
4. Comprises Sickness Benefits and Sickness Benefits - Hardship.
5. Includes clients receiving an Orphan's Benefit or an Unsupported Child's Benefit.

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Trends in expenditure on Temporary Additional Support

Expenditure on Temporary Additional Support has risen over the last two years (see table 4.36), reflecting the role of Temporary Additional Support as the replacement for Special Benefit. During the last three months of the 2005/2006 financial year, expenditure on this assistance totalled around $1 million.

Table 4.36 Trends in annual expenditure on Temporary Additional Support

Year ended June	Expenditure on Temporary Additional Support1,2,3 ($m)
2005/20064	1
2006/2007	25
2007/2008	52

Notes

1. Expenditure on Temporary Additional Support in years ended June.
2. Expenditure shown is adjusted to payment periods based on a standard 30-day month and smoothed using a two-month moving average.
3. Expenditure data in this table differs from, and should not be cited as, MSD's official measure of expenditure on financial assistance provided to clients.
4. Refers to the three-month period 1 April - 30 June 2006.

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