Notice Type
Departmental
Training Incentive Allowance Programme Pursuant to section 124 (1) (d) of the Social Security Act 1964, I, Roger Morrison Sowry, Minister of Social Services, Work and Income, establish and approve the following welfare programme for special assistance. I revoke the Training Incentive Allowance Programme approved by me on 20 December 1996, except that (a) Where a person has been granted a training incentive allowance under that programme before this revocation takes effect, payments may continue to be made under that programme (i) Until the earlier of the end of the course in respect of which that allowance was granted or 31 December 1998; or (ii) If under clause 5.3 of that programme approval has been given to continue payments of an allowance after 31 December 1998, until the earlier of the end of the course in respect of which that approval was given or 1 February 1999; and (b) Any payments of assistance made under that programme that are recoverable under it may continue to be recovered. Dated this 30th day of November 1998. Hon. ROGER SOWRY, Minister of Social Services, Work and Income. A n a l y s i s 1. Title and commencement 2. Interpretation 3. Objects 4. Application of Social Security Act 1964 5. Allowances 6. Rates 7. Beginning and end of payments 8. Payment 9. Refunds 10. Application Programme 1. Title and commencement 1.1. This programme is called the Training Incentive Allowance Programme. 1.2. This programme commences on the date the Minister gives his approval to it. 2. Interpretation 2.1. In this programme, unless the context otherwise requires ``Act'' means the Social Security Act 1964; ``Allowance'' means a Training Incentive Allowance, being the assistance under this programme; ``Applicant'' means a person who makes an application for an allowance; ``Course'' means an educational or training course; ``NZQA'' means the New Zealand Qualifications Authority established under Part XX of the Education Act 1989; ``Course costs'', in relation to a course, means the applicant's necessary and reasonable costs of attending the course for tuition and enrolment fees, books, materials, and equipment; ``Postgraduate course'' means (a) Any honours, masters, or doctorate degree course offered by a tertiary institution; or (b) Any other course (including a diploma course), which has, as a prerequisite requirement, the completion of any bachelors or other undergraduate degree or diploma, or a period of relevant work experience; ``Student loan'' has the meaning in the Student Loan Scheme Act 1992; ``Tertiary institution'' means an institution within the meaning of Part XIII of the Education Act 1989; ``Training costs'', in relation to a course, means the applicant's necessary and reasonable costs of attending the course for (a) Course costs; and (b) In the case of an invalid's beneficiary who is aged 21 or more, is attending a secondary school, and requires the assistance of a teacher aide or a personal assistant, that assistance; (c) Transport to and from the course; and (d) Child care, less any amount that is paid in respect of those costs under a welfare programme under section 124 (1) (d) of the Act for child care assistance; ``Year'', in relation to an allowance, means the period of 52 weeks commencing on the date of application for the allowance. 2.2. Terms otherwise defined in the Act have the meanings so defined. 3. Objects The objects of this programme are to provide financial assistance to people receiving certain benefits to enable them undertake employment related training that will (a) Enhance and improve their work skills; and (b) Thereby increase their prospects of obtaining full-time employment or part-time work, and gaining independence from the benefit system. 4. Application of Social Security Act 1964 4.1. Sections 12, 62, 68a, 71, 74, 74a, 76, 77, 80a, 81, 82 (3), (4), and (7), 84, and 86j of the Act apply to this programme as if the assistance under it were a benefit under the Act. 4.2. Nothing in clause 4.1 limits any other provision of the Act. 5. Allowances 5.1. Eligibility 5.1.1. For the purpose of assisting an applicant to become independent of a benefit for his or her financial support, the chief executive may grant a Training Incentive Allowance to any applicant who (a) Is in receipt, in his or her own right, of (i) A domestic purposes benefit, an invalid's benefit, or a widow's benefit; or (ii) The emergency benefit known as the emergency maintenance allowance; and (b) Is enrolled (or is enrolled subject to the payment of tuition fees) in an employment related training course offered by a course provider (i) Accredited by the NZQA; or (ii) That is a tertiary institution or a secondary school. 5.2. Restrictions 5.2.1. If the applicant is a work-tested beneficiary, an allowance may be granted only if (a) The chief executive considers the course the applicant intends to undertake is the most effective means of securing the applicant's future employment; or (b) The applicant has been granted a deferral of work-test obligations on the ground in regulation 7 (2) of the Social Security (Reciprocal Obligations: Exemptions and Deferrals) Regulations 1998. 5.2.2. No allowance may be granted (a) For a Training Opportunities Programme (TOP) Course; or (b) For a course provided by the department; or (c) For a postgraduate course; or (d) To a person who has completed a degree course at a tertiary institution within the period of 5 years preceding the application of the allowance, whether or not the person has been awarded a degree. 6. Rates 6.1. Course not qualifying for student loan 6.1.1. If no student loan is available for the applicant's course, the amount of an allowance is the applicant's training costs calculated on a weekly basis for each week of the course up to a maximum of $75 a week but no more than $3,000 per year. 6.2. Course qualifying for student loan 6.2.1. If a student loan is available for the applicant's course, the amount of an allowance is (a) 60 percent of the applicant's course costs calculated on a yearly basis up to a maximum of $3,000 a year; and (b) If the amount in paragraph (a) is less than $3,000, the applicant's other training costs up to a maximum of $75 a week for each week of the course until the amount in paragraph (a) and the amount paid under this paragraph total $3,000. 6.3. Clauses 6.1.1 and 6.2.1 apply whether or not the applicant would be eligible to receive a student loan. 6.4. Yearly limit 6.4.1. This clause applies where an applicant (a) Is granted an allowance for a course (the ``first course''); and (b) Is granted an allowance for a subsequent course commencing within the year that relates to the first course. 6.4.2. Where clause 6.4.1 applies, no payments of an allowance in respect of those courses may exceed $3,000 in that year. 7. Beginning and end of payments 7.1. Beginning 7.1.1. No allowance (including a lump sum advance under clause 8.1) may be paid earlier, or for any period earlier, than (a) The date the course begins, if the application is received within 28 days of that date; or (b) The date the application is received, if received more than 28 days after the course begins. 7.2. End 7.2.1. The chief executive may grant an allowance for a period ending on the earlier of (a) The date the course ends; or (b) The date the year ends. 8. Payment 8.1. Lump sum advances 8.1.1. The chief executive may, on application, make payment of all or part of an allowance in advance, if satisfied that, and to the extent, the applicant has training costs that are reasonably required to be paid in advance. 8.1.2. An advance under clause 8.1.1 may be paid to the course provider. 8.2. Payments 8.2.1. In the chief executive's discretion, an allowance may be paid to the applicant (a) In a lump sum; or (b) By instalments on the pay days of the applicant's benefit; or (c) By any combination of (a) or (b). 8.2.2. When exercising the discretion, the chief executive must have regard to how and when the applicants training costs are to be paid. 9. Refunds 9.1. Condition 9.1.1. It is a condition of an allowance that the applicant must, if the applicant fails to enrol in or complete the course, (a) Seek a refund of the tuition and enrolment fees paid for the course from the course provider; and (b) Refund to the department the percentage of the refund referred to in clause 9.1.2; and (c) Sign an undertaking to this effect. 9.1.2. The percentage referred to in clause 9.1.1 (b) is the percentage of the applicant's tuition and enrolment fees paid by the department under this programme. 9.2. Refund 9.2.1. If any such refund is made to the department, the department must pay the refund to the applicant less the percentage of the refund referred to in clause 9.1.2. 9.2.2. If any such refund is made to the applicant, the applicant must pay to the department the percentage of the refund referred to in clause 9.1.2. 9.3. Debt 9.3.1. The applicant is not entitled to retain any more of that refund than the amount he or she would be entitled to be paid under clause 9.2.1. Any amount retained by the applicant in excess of that amount is a debt due to the Crown, and may be recovered by the chief executive in accordance with the Act. 9.4. Powers not limited 9.4.1. Nothing in clauses 9.1 to 9.3 limits the chief executive's powers under section 86 (1c) or section 124 (2) of the Act. 10. Application 10.1. Form 10.1.1. An application for an allowance must be on a form approved for the purpose by the chief executive. 10.2. Information to be supplied 10.2.1. No application may be granted unless the applicant supplies all information the chief executive considers necessary to decide if the application should be granted including (a) Proof of enrolment (or enrolment subject to payment of fees) from the course provider; and (b) Evidence of the nature and duration of the course, and of the training costs.
Publication Date
10 Dec 1998

Notice Number

1998-go8718

Page Number

4695