Changed Benefit System
Starting in May (in trial form), a single core benefit and altered employment services will replace the current raft of benefits, rules and entitlements. The government says the change to a single benefit, with one set of criteria, will dramatically reduce the time spent on administration, allowing case managers to focus more on moving people from dependency to work.
Elements of the new system include: a single core benefit with one set of rates and one set of eligibility criteria; and add-ons to support people with higher costs because of things like accommodation, childcare, or disability.
The single core benefit will replace three forms of Domestic Purposes benefit (single parents, woman alone and carer for sick or invalid), the sickness benefit, invalid's benefit, and unemployment benefit. The current widow's benefit will be "grandparented" for those currently on it, but absorbed into the new structure in the future.
There will be some changes to the emergency benefit (including the emergency maintenance allowance), and the independent youth benefit. Orphans benefit, unsupported child benefit and NZ superannuation will not be affected.
Add-ons for people who have been on benefits, whether they are in or out of work, will include the accommodation supplement, family support and "an integrated disability payment."
An altered employment service will comprise two distinct streams:
- The rapid return to fulltime work stream for people who are ready and able to work and need the right services to get them there. Also included will be people for whom a return to work will take slightly longer, for example, people in work-focused training, or who are temporarily unable to work for health reasons.
- The work, development and preparation stream for people who need a more gradual transition to full-time work, or for whom part-time or intermittent work is a realistic long-term option. People in this stream will have work-focused requirements, such as planning and assessment, to help them return to work as circumstances allow.
Timeline
Decisions on the new service model will be made in April and trialled in 11 areas starting in May. Policy decisions as to the level of the single core benefit will be made in July and resulting legislation drafted. Roll-out of the new service model, with its emphasis on return to work either rapidly or gradually, starts in 2006 and the package is expected to be fully put in place in 2007/8.
Sources: Govt release, "LawScene"
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