To: The Chief Executive of the Ministry of Social Development.
Pursuant to section 5 of the Social Security Act 1964, the Minister for Social Development gives the following direction.
D i r e c t i o n
1. Title-This direction is the Direction in Relation to New-born Children and Hardship Assistance.
2. Commencement-This direction comes into force on
1 July 2014.
3. Application-This direction applies to the exercise of your powers under sections 82(6B), 86(1) and 124(1)(d)
of the Act in relation to hardship assistance.
4. Interpretation-(1) In this direction,-
Act means the Social Security Act 1964
hardship assistance means-
(a) an advance payment of a benefit under section 82(6) of the Act:
(b) a grant of special assistance under the Special Needs Grants Programme* or the Recoverable Assistance ProgrammeÅ under section 124(1)(d) of the Act.
new-born child means a child aged of or under
12 months.
(2) Terms otherwise defined in section 3(1) of the Act, the Direction on Advance Payment of BenefitÎ, the Special Needs Grants Programme and the Recoverable Assistance Programme have the same meanings in this direction.
5. Hardship assistance-obligations
When an application is made for hardship assistance, you must consider whether the applicant is the principal caregiver of a new-born child when exercising your power whether to require the applicant to undertake a budgeting activity-
(a) under section 82(6B) of the Act in the circumstances specified in Regulation 5, and of a kind specified in Regulation 6, of the Social Security (Advance Payment of Benefit) Regulations 2010; or
(b) under clause 9.12 of the Special Needs Grants Programme in the circumstances set out in clause 9.13 of that Programme; or
(c) under clause 9.5 of the Recoverable Assistance Programme in the circumstances set out in clause 9.6 of that Programme.
6. Exceptional circumstances-amount of special
needs grant
In exercising your power under clause 9.4 of the Special Needs Grants Programme to consider whether exceptional circumstances exist for the purpose of determining whether to make a Grant in excess of the amount stated in the clause of that programme under which the Grant is made, you must consider, in addition to any other relevant consideration, whether the applicant is the principal caregiver of
a new-born child.
7. Exceptional circumstances-rate of recovery
You must consider whether the applicant is the principal caregiver of a new-born child when exercising your power to consider whether exceptional circumstances exist in regard to-
(a) recovering an Advance at a lower rate than set out in clause 5 of the Direction on Advance Payment of Benefits; or
(b) setting a rate of recovery of less than $4.00 per week under clause 21.4 of the Special Needs Grants Programme; or
(c) determining the rate of repayment by instalments under clause 15.4 of the Recoverable Assistance Programme.
Dated at Wellington this 21st day of May 2014.
HON PAULA BENNETT, Minister for Social Development.
Explanatory Note
This note is not part of the direction but is intended to indicate its general effect.
This direction by the Minister for Social Development under the Social Security Act 1964 ("the Act") clarifies existing policy settings for hardship assistance for principal caregivers of new-born children aged under 12 months.
The intention is to ensure that existing supports that are available through hardship assistance are appropriately provided to caregivers of new-born children by clarifying:
- that the chief executive must consider the presence of a new-born child when considering whether to apply certain hardship obligations;
- ministerial expectations around considering the presence of a new-born child when determining whether exceptional circumstances exist for exceeding guideline grant amounts;
- that lower rates of repayment for recoverable assistance may be available to caregivers of new-born children, which would free up their financial resources during the first year with their child.
*New Zealand Gazette, 28 January 1999, No. 563, page 202
ÅNew Zealand Gazette, 25 February 1999, No.23, page 567
ÎNew Zealand Gazette, 24 June 1999, No.75, page 1687