Social Security (Special Benefit Restoration) Amendment Bill
Member's Bill
Explanatory note
Background
The purpose of this Act is repeal those sections of the Social Security (Working for Families) Amendment Act 2004 that, without repeal, will from 1 April 2006 replace the discretionary provision of special benefit under section 61G of the Social Security Act with a regulated entitlement to temporary additional support.
Special benefit is the benefit of last resort, available to people who are receiving all other income support payments to which they are entitled, but are still unable to meet their essential financial commitments. As such, it acts as the final safety net of the social security system.
The discretionary nature of special benefit permits staff charged with administering social security legislation to take into account the individual circumstances of an applicant, and to determine and pay special benefit at the rate necessary for an applicant to meet his or her essential financial commitments.
The Social Security (Working for Families) Amendment Act 2004 enacted amendments to the Social Security Act that will, from 1 April 2006, replace special benefit with a benefit called temporary additional support. Temporary additional support will be regulated, rather than discretionary. The legislation and regulations governing payment of temporary additional support will require that the level of temporary additional support payments be capped.
Temporary additional support will lack the flexibility to adequately meet the essential commitments of many applicants. Furthermore, the proposed regulations for temporary additional support will require that applicants receive $20 less than the amount that is assessed by the regulatory mechanism for temporary additional support assessments as being the minimum amount an applicant requires to meet his or her essential financial commitments.
The replacement of special benefit with temporary additional support will therefore increase the financial hardship of people who are already among the poorest and most vulnerable in New Zealand society.
This Bill repeals the replacement of special benefit by temporary additional support, thereby permitting the discretionary assessment of hardship assistance under the existing special benefit legislation to continue past 1 April 2006.
Clause by clause analysis
Clause 1 gives the Bill its Title.
Clause 2 is a commencement provision. It provides that the Bill will come into force on the day after the date it receives the Royal assent.
Clause 3 states the Bill's purpose.
Clause 4 repeals those sections of the Social Security (Working for Families) Amendment Act 2004 that will replace special benefit with temporary additional support.
Clause 5 consequentially amends the commencement provisions of the Social Security (Working for Families) Amendment Act 2004.
Sue Bradford
Social Security (Special Benefit Restoration) Amendment Bill
Member's Bill
Contents
The Parliament of New Zealand enacts as follows:
1Title
(1)This Act is the Social Security (Special Benefit Restoration) Amendment Act 2005.
(2)In this Act, the Social Security Act 1964 is called "the principal Act".
2Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3Purpose
The purpose of this Act is repeal those sections of the Social Security (Working for Families) Amendment Act 2004 that, without repeal, will from 1 April 2006 replace the discretionary payment of special benefit under section 61G of the principal Act with a regulated entitlement to temporary additional support.
4Repeal of temporary additional support provisions
Sections 10, 21, and 23 and Schedule 3 of the Social Security (Working for Families) Amendment Act 2004 are repealed.
5Consequential amendment
Section 2 of the Social Security (Working for Families) Amendment Act 2004 is amended by repealing subsection (5).
