Emergency Benefit

Overview

An Emergency Benefit is available to people who are suffering hardship, are unable to earn enough income for themselves (and any family) and are ineligible to receive any other benefit.

In considering whether a client is eligible to receive an Emergency Benefit, the following factors are taken into account:

• why the client can't receive another benefit (eg age, medical requirements, residency requirements, job search requirements)
• whether the client meets the hardship criteria (ie low cash assets and no income or means of supporting themselves or a family)
• whether the client has contributed to their situation in any way (eg not looking for other work in the off season from their main employment)
• whether the client could change their position to ease their hardship (eg look for work, change the focus of their business).

Income and asset tests apply.

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Trends in the number of clients receiving an Emergency Benefit

The number of Emergency Benefit recipients has decreased over the last two years (see table 3.56). This reflects a combination of an ongoing downward trend in numbers of working age clients receiving Emergency Benefits (resulting from changes in client circumstances) and the impact of a change from July 2007 in residency criteria to receive some other benefits.

Since 2003, the proportion of recipients who were working age has decreased from 46% to 32% (see table 3.56). Virtually all of the remainder have been aged 65 years or over, with numbers in this age group trending upward over recent years until the residency changes in the last year. Many clients receiving these benefits do so because they are not residentially qualified to receive other pensions or main benefits.

Between 2007 and 2008, the proportion of working age Emergency Benefit recipients who were aged 40-64 years decreased from 63% to 56% (see table 3.56). Since 2004, the proportion of these clients who had received their benefit for less than two years decreased slightly (from 67% to 63%) (see table 3.57). This reflects a slowing of grants of Emergency Benefits to working age people.

Table 3.56 Trends in the ages of clients receiving an Emergency Benefit

Age of client at the end of June	2004 Number	2005 Number	2006 Number	2007 Number	2008 Number
	Working age clients receiving an Emergency Benefit1
18-19 years	151	116	119	107	123
20-24 years	352	309	314	283	245
25-29 years	368	335	317	273	265
30-34 years	422	334	357	292	251
35-39 years	450	368	343	301	267
40-44 years	397	358	401	325	227
45-49 years	446	386	421	334	215
50-54 years	397	385	403	405	252
55-59 years	412	398	430	448	288
60-64 years	734	489	633	635	506
Total working age clients	4,129	3,478	3,738	3,403	2,639
	Other clients receiving an Emergency Benefit1
Total other clients	4,818	5,505	5,958	5,995	5,636
	Total clients receiving an Emergency Benefit1
Total	8,947	8,983	9,696	9,398	8,275

Note

1. Numbers of clients in age groups recorded in SWIFTT as receiving an Emergency Benefit at the end of June.

Table 3.57 Trends in the length of current spells receiving an Emergency Benefit, for working age clients

Length of current spell to the end of June	Working age clients receiving an Emergency Benefit1
	2004 Number	2005 Number	2006 Number	2007 Number	2008 Number
Under 6 months	1,389	1,120	1,225	1,047	783
6 months-2 years	1,392	1,213	1,190	1,140	890
2-4 years	767	653	758	714	540
4 years or over	581	492	565	502	426
Total	4,129	3,478	3,738	3,403	2,639

Note

1. Numbers of working age clients recorded in SWIFTT as receiving an Emergency Benefit at the end of June.

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Trends in the proportion of working age people receiving an Emergency Benefit

Each year since 2004, less than 0.2% of all working age people in the New Zealand population have received an Emergency Benefit at the end of June, with a significantly higher proportion of 60-64 year olds than of younger people have done this (see figure 3.17).

figure 3.17 Trends in the proportion of working age people receiving an Emergency Benefit, by age

Note

1. Proportion shows:
   1. number of clients in age group recorded in SWIFTT as receiving an Emergency Benefit 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 A3.13 for a summary of the SWIFTT data underlying figure 3.17

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Trends in Emergency Benefits granted

The number of Emergency Benefits granted has decreased over the last two years (see table 3.58), with an accelerated decrease over the last year reflecting in part changes in residency criteria for entitlement to New Zealand Superannuation and to some main benefits. Since 2004/2005, around 80% of these benefits granted have been provided to working age clients. Virtually all of the remainder have been granted to clients aged 65 years or over.

Since 2004/2005, the proportion of working age clients granted Emergency Benefits who had received a benefit in the previous 12 months has decreased (from 53% to 45%) (see table 3.58).

Table 3.58 Trends in the length of periods since clients granted an Emergency Benefit last received any main benefit

Period since client last received any main benefit	2003/2004 Number	2004/2005 Number	2005/2006 Number	2006/2007 Number	2007/2008 Number
	Number of Emergency Benefits granted to working age clients1
None (clients transferring from another benefit or district)2	1,843	1,337	1,386	1,142	723
Under 6 months	3,387	3,005	2,803	2,414	1,880
6-12 months	918	1,044	1,065	896	667
12-18 months	280	302	365	316	270
18 months-2 years	223	259	304	280	212
2-4 years	373	429	513	513	424
Had not received a main benefit in previous four years	1,353	1,193	1,467	1,454	1,505
Total granted to working age clients	8,377	7,569	7,903	7,015	5,681
	Number of Emergency Benefits granted to other clients1
Total granted to other clients	1,523	1,946	1,824	1,575	1,531
	Total number of Emergency Benefits granted1
Total	9,900	9,515	9,727	8,590	7,212

Notes

1. Numbers of successful applications for Emergency Benefits recorded in SWIFTT in years ended June.
2. Includes only a minority of transfers of benefits between districts. Most such transfers are accomplished without cancelling and re-granting benefits.

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Trends in cancellations of Emergency Benefits

The number of Emergency Benefits cancelled decreased in the last year, after remaining relatively stable for the previous two years (see table 3.59). Since 2003/2004, the proportion of these cancellations which were by working age clients has decreased (from 87% to 77%). Of the remainder, virtually all have involved clients aged 65 years or over, with a majority of these clients cancelling their benefit because they left New Zealand or transferred to another pension or main benefit (usually to New Zealand Superannuation).

Forty-eight percent of the working age clients cancelling Emergency Benefits in 2007/2008 entered paid work, compared with 54% in 2006/2007 (see table 3.59). There was a corresponding rise in the proportion of these clients transferring to another benefit, pension or district (including those qualifying for New Zealand Superannuation) (from 22% to 29%).

Table 3.59 Trends in reasons for clients cancelling Emergency Benefits

Reason for cancellation	2003/2004 Number	2004/2005 Number	2005/2006 Number	2006/2007 Number	2007/2008 Number
	Emergency Benefits cancelled by working age clients1
Obtained paid work2	3,280	3,859	3,814	3,974	3,100
Transferred to another benefit, pension or district3,4	2,238	2,368	1,718	1,636	1,871
Other2	2,691	2,193	1,925	1,688	1,497
Total cancelled by working age clients	8,209	8,420	7,457	7,298	6,468
	Emergency Benefits cancelled by working age clients1
Total cancelled by other clients	1,222	1,357	1,461	1,692	1,906
	Total Emergency Benefits cancelled1
Total	9,431	9,777	8,918	8,990	8,374

Notes

1. Numbers of Emergency Benefit cancellations recorded in SWIFTT in years ended June.
2. Due to recoding of reasons for cancelling main benefits, these figures may not reconcile with those published in pervious years.
3. "Transferred to another benefit [or] pension" includes some transfers from main benefits to New Zealand Superannuation, including those previously shown as "Qualified for New Zealand Superannuation".
4. "Transferred to another … district" represents cancellations undertaken so a client's benefit can be administered from a different Work and Income service centre. These changes may reflect a change of address by the client or an administrative decision by Work and Income. A majority of transfers of benefits between districts are completed without cancelling the client's benefit, and therefore are not included above.

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