Child Disability Allowance

Overview

A Child Disability Allowance is a fortnightly payment that can be made to the principal caregiver of a child who:

• requires constant care and attention because of a physical, psychiatric or intellectual disability
• is likely to need care permanently or for more than 12 months.

To be eligible for a Child Disability Allowance, the caregiver must be:

• a New Zealand citizen or permanent resident of New Zealand
• ordinarily resident in New Zealand.

In addition, the child covered by an allowance must be:

• a dependent child of the carer receiving the allowance
• ordinarily resident in New Zealand.

The allowance is not means tested.

Since 2004, the proportion of children covered by a Child Disability Allowance who were also covered by a Disability Allowance has decreased (from 20% to 15%). In these cases, Disability Allowances are paid to reimburse the direct costs arising from the child's disability.

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Trends in the number of children covered by a Child Disability Allowance

Please note that information in this section shows the number of children covered by Child Disability Allowances received. This information may therefore differ from other published information showing the number of clients receiving an allowance that may cover one or more children.

Increases since 2004 in the number of children covered by a Child Disability Allowance (see table 4.20) reflect increasing numbers of children being granted an allowance and operational changes as well as the long-term nature of the conditions these children have. Enhancements to administration processes were introduced in July 2004 (including annual reviews and reminders that children reaching the age of 16 may be eligible for Invalid's Benefits). This change initially led to an increase in recipients in July and August 2004, but numbers fell subsequently. There was a further policy change from April 2007 which meant that Child Disability Allowance payments are no longer suspended under the annual review process if recipients don't return their annual review form.

Over this period, 83% of children covered by an allowance have been aged under 14 years, including around 23% who were aged under five years (see table 4.20).

Table 4.20 Trends in the ages of children covered by a Child Disability Allowance

Age of child at the end of June	Children covered by a Child Disability Allowance1
	2004 Number	2005 Number	2006 Number	2007 Number	2008 Number
0-4 years	7,367	7,581	8,236	8,898	9,865
5-9 years	10,360	11,112	12,201	13,173	14,717
10-13 years	8,469	8,873	9,643	10,420	11,419
14-17 years	5,163	5,378	6,028	6,547	7,052
18-19 years	112	106	98	107	132
20 years or over	0	0	1	0	0
Total	31,471	33,050	36,207	39,145	43,185

Note

1. Numbers of children recorded in SWIFTT as being covered by a Child Disability Allowance at the end of June.

Sixty-three percent of the children covered by a Child Disability Allowance in 2008 had caregivers who were not receiving any pension or main benefit, compared with 57% in 2004 (see table 4.21). There was a corresponding decrease in the proportion with caregivers who were receiving a carer's benefit.

Table 4.21 Trends in the types of pension or main benefit paid to caregivers of children covered by a Child Disability Allowance

Type of pension or main benefit paid to caregivers at the end of June	Children covered by a Child Disability Allowance1
	2004 Number	2005 Number	2006 Number	2007 Number	2008 Number
Unemployment-related benefits2	712	579	501	348	336
Carer's benefits3	9,940	10,053	10,598	10,950	11,950
Sickness-related benefits4	769	742	831	865	809
Invalid's Benefit	1,606	1,740	1,860	1,995	2,219
Widow's Benefit	161	171	177	174	174
Emergency Benefit	227	209	232	225	158
New Zealand Superannuation	144	152	164	190	227
Veteran's Pension	3	3	3	3	5
No pension or main benefit5	17,909	19,401	21,841	24,395	27,307
Total	31,471	33,050	36,207	39,145	43,185

Notes

1. Numbers of children recorded in SWIFTT as being covered by a Child Disability Allowance 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 entitled to a Child Disability Allowance through receiving an Orphan's Benefit or an Unsupported Child's Benefit.

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Trends in the proportion of children aged under 18 years covered by a Child Disability Allowance

Increases since 2004 in the proportion of all children aged under 18 years in the New Zealand population who were covered by a Child Disability Allowance at the end of June each year (see figure 4.10) reflect the long-term nature of the conditions that children eligible for an allowance have. Throughout this period, children aged 5-13 years have been more likely than other children aged under 18 years to be covered by these allowances.

figure 4.10 Trends in the proportion of children aged under 18 years covered by a Child Disability Allowance, by age

Note

1. 1 Proportion shows:
   1. number of children in age group recorded in SWIFTT as being covered by a Child Disability Allowance 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 A3.19 for a summary of the SWIFTT data underlying figure 4.10

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Trends in Child Disability Allowances granted

The number of Child Disability Allowances granted each year has increased since 2003/2004 (see table 4.22). Fifty-five percent of the children covered by an allowance granted in 2007/2008 had caregivers receiving no pension or main benefit, compared with 46% in 2003/2004. Over the same period, the proportion of these children with caregivers who were receiving carer's benefits decreased (from 40% to 34%).

Table 4.22 Trends in the types of pension or main benefit paid to caregivers of children covered by Child Disability Allowances granted

Type of pension or main benefit paid when Child Disability Allowance granted	Child Disability Allowances granted1
	2003/2004 Number	2004/2005 Number	2005/2006 Number	2006/2007 Number	2007/2008 Number
Unemployment-related benefits2	386	294	238	209	164
Carer's benefits3	3,512	3,336	3,515	3,490	3,750
Sickness-related benefits4	275	269	326	344	366
Invalid's Benefit	435	382	383	461	496
Widow's Benefit	46	45	42	41	46
Emergency Benefit	88	87	88	89	80
New Zealand Superannuation	40	38	41	47	57
Veteran's Pension	2	0	0	0	1
No pension or main benefit5	4,094	4,670	5,042	5,338	6,067
Total	8,878	9,121	9,675	10,019	11,027

Notes

1. Numbers of successful applications for Child Disability Allowances 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 entitled to a Child Disability Allowance through receiving an Orphan's Benefit or an Unsupported Child's Benefit.

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Trends in expenditure on Child Disability Allowances

Increases since 1995/1996 in annual expenditure on Child Disability Allowances (see table 4.23) largely reflect increases in the number of children covered by an allowance.

Table 4.23 Trends in annual expenditure on Child Disability Allowances

Year ended June	Expenditure on Child Disability Allowances1,2,3 ($m)
1995/1996	21
1996/1997	25
1997/1998	28
1998/1999	32
1999/2000	35
2000/2001	39
2001/2002	41
2002/2003	47
2003/2004	56
2004/2005	62
2005/2006	69
2006/2007	76
2007/2008	86

Notes

1. Expenditure on Child Disability Allowances 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. Child Disability Allowances 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.

Little seasonal variation is evident in monthly expenditure on Child Disability Allowances (see figure 4.11). A short halt to the increases during late 2000/2001 and early 2001/2002 arose from a review of overdue medical reviews, which led to a temporary fall in the number of Child Disability Allowance recipients. Administrative improvements in July 2004 also lead to a temporary fall in growth, before a new seasonal pattern with growth flattening each January and February established itself.

figure 4.11 Trends in monthly expenditure on Child Disability Allowances

Notes

1. Expenditure is adjusted to payment periods based on a standard 30-day month and smoothed using a two-month moving average. Child Disability Allowances 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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