Social welfare has long been an important part of New Zealand society and a significant political issue. It is concerned with the provision by the state of benefits and services. Together with fiscal welfare and occupational welfare, it makes up the social policy of New Zealand. Social welfare is mostly funded through general taxation. Since the 1980s welfare has been provided on the basis of need; the exception is universal superannuation where everyone is covered regardless of income, for example, retirement benefits.
State housing
The government provides State housing to those in need. The number of houses owned by the State has varied over the years and between different governments. Currently the level of rent paid in state housing is related to the level of income of the people living in the house (income-related rents) so that those on low incomes pay below market rents. Where a household's income is relatively high the rents are set at the market rate.
In addition to the provision of State housing the government also provides an Accommodation Supplement. This is payable as a contribution to rent, board or mortgage payments for qualifying people. The Accommodation Supplement is not paid to those paying income-related rents in a State house.
In some instances a person may also qualify for a rates rebate to help with the cost of local government rates.
Students
Domestic students (NZ citizens and PR, and Australian citizens studying in NZ) could avail these benefits.
StudyLink is the primary financial aid hub for student loans (tuition, living costs), allowances (if eligible), and grants.
Students Work & Income (WINZ): For severe hardship (not study-related), you might get benefits like Jobseeker Support (if you can't work) or Sole Parent Support, but these have strict conditions.
Social security Social security benefits are administered by Work and Income. As of July 2013, they include:
Child Disability Allowance – for people providing full-time care for a child or young person (under 18) with a disability Jobseeker Support – for unemployed people aged 18 and over looking for employment. Formerly Unemployment Benefit. New Zealand Superannuation – for people aged 65 and above. Orphan's Benefit – for people who are raising children who can't live with their parents because they are deceased, incapacitated or can't be located. Sole Parent Support – for single parents aged 20 and over, who are caring for children aged under 14. Formerly Domestic Purposes Benefit - Sole Parent. Supported Living Payment – for people who cannot work due to disability, and people providing full-time care for someone 18 and over with a disability. Formerly Invalid's Benefit and Domestic Purposes Benefit - Care of the ill or infirm. Unsupported Child's Benefit – for people who are raising children who can't live with their parents due to a family breakdown. Veteran's Pension – for people who have served in the New Zealand Defence Force during a war or emergency and have a war-related disability. Young Parent Payment – for young people aged 16–19 and caring for children aged under 14, who can't live with their parents and are unsupported by them. Youth Payment – for young people aged 16–17 who can't live with their parents and are unsupported by them.
Unemployment Benefit (Jobseeker Support) Unemployment Act 1930 In 1930, while Prime Minister George Forbes was in London for the 1930 Imperial Conference, the United Government passed the Unemployment Act, promising relief payments to those who registered as unemployed. Upon his return to New Zealand in January 1931, Forbes announced there would be no payments made without work, meaning those registered would have to participate in government 'make work' schemes such as building roads and working on farms or in forestry projects. When the register was opened in February, 23,000 people put their names down; by June the number of registered unemployed had risen to 51,000 as the Great Depression worsened. The register did not include women, Māori, or boys under 16. In 1933 (by which time the number of unemployed had reached 80,000), MP Gordon Coates introduced the Small Farms (Relief of Unemployment) Bill to help turn unemployed workers into small farmers.
Social Security Act 1938 After winning the 1935 election the newly elected Labour government immediately issued a Christmas bonus to the unemployed. However, a regular unemployment benefit was not introduced until the passing of the Social Security Act in 1938; that benefit was "payable to a person 16 years of age and over who has been in New Zealand for at least 12 months and is unemployed, is capable of and willing to undertake suitable work, and has taken reasonable steps to secure employment".
Today
The criteria for receiving an unemployment benefit remain similar to the original 1938 legislation. At 1 December 2011, a person could get Unemployment Benefit if they were: not in full-time work available for, and looking for full-time work over 18 years of age (or 16–17 if they are married or in a civil union or in a de facto relationship and have one or more children they support) be a New Zealand citizen or permanent resident have lived in New Zealand for at least 2 years at any one time since becoming a New Zealand citizen or resident (unless you are a refugee) normally living in New Zealand and intending to stay there. They might still qualify if they were a full-time trainee on an approved work related course (usually less than 12 weeks) and looking for work.
The Unemployment Benefit gross rate at 1 April 2011 ranged between $150.01 and $375.04 a week depending on the applicant's age and living situation.
From September 2007 there has been a number of changes to the delivery of unemployment benefits; the changes focus mainly on youth with a goal of having all 15-to-19-year-olds engaged in employment, training, or education. People applying for the unemployment benefit will be required to undertake work- or training-related activities in the period between their first contact with Work and Income and their benefit commencing. They will also be required to look for and accept any offer of suitable work during that time. Similar new measures will also apply to people on Sickness Benefit and Invalid's Benefit, and the Domestic Purposes Benefit. Beneficiaries could have their benefits cut by up to 50% if they fail to comply. These new measures have been criticised by the DPA (formerly Disabled Persons Assembly). A spokesperson told the New Zealand Herald: "Disabled people have been telling Social Welfare for years that we want to work, but we want the appropriate kind of work".
In July 2013, the Unemployment Benefit was renamed "Jobseeker Support", and also incorporated those on the Sickness Benefit and Domestic Purposes Benefit – Women Alone, and those on the Domestic Purposes Benefit – Sole Parent and Widow's Benefit where their youngest child is aged 14 and over.
Domestic Purposes Benefit (Sole Parent Support)
The Domestic Purposes Benefit (DPB) was introduced in 1974 following the Report of the Royal Commission of Inquiry into Social Security. It provides State financial support primarily for single parents, irrespective of whether the other parent was contributing to maintenance payments (a feature of earlier legislation) and irrespective of fault. While there was a Widow's Benefit for women with children whose partner had died, this was not available to men.
Until July 2013, there were three forms of Domestic Purposes Benefit: DPB – Sole Parent DPB – Care for the Sick or Infirm DPB – Woman Alone
The rate of payment of a DPB is greater than the rate paid for the Unemployment Benefit and the Sickness Benefit. The rate of payment for the DPB: Care for the Sick or Infirm is the same as for the Invalid's Benefit.
People receiving DPB – Sole Parent are encouraged to name the other partner and to seek child support payments. There is a financial penalty for Sole Parents (section 70A of the Social Security Act 1964) who do not seek child support without sufficient reason. Any child support payments are generally used to offset the State cost of the DPB payment, with any excess going to the sole parent.
At the end of December 2012, 109,118 people were receiving DPB – Sole Parent, of which around 12% were male.
In July 2013, the DPB Women Alone and DPB Care for the Sick or Infirm were removed, with those on them moving to the unemployment benefit (Jobseeker Support) and the new Supported Living Payment respectively. The DPB Sole Parent was renamed "Sole Parent Support" at the same time.
Health benefits (Sickness Benefit and Invalid's Benefit)
Social Security Act 1938 Two types of health benefits were introduced with the 1938 legislation, the Invalid's Benefit and the Sickness Benefit.
The Invalid's Benefit is paid to those permanently incapacitated or totally blind (excluding those already receiving an age benefit). An applicant must have been at least 16 years of age and residentially qualified. The applicant was residentially qualified when their incapacity arose in New Zealand or they were resident in New Zealand on 4 September 1936 and had lived in New Zealand for at least 10 years immediately before applying for the benefit. In 2007 the residence requirement was set at two years.
The Sickness Benefit is payable to those who are temporarily incapacitated from working through sickness or accident, excluding the first seven days of incapacity. To qualify, an applicant must have suffered a loss of salary, wages, or other earnings, and have resided in New Zealand for at least 12 months. The rate of benefit at the time it was introduced could not exceed the loss of earnings through incapacity. The rate now is currently the same as the Unemployment Benefit. As with other benefits introduced in 1938, the applicant had to be over 16 years of age.
Controversies In 2006 the government was accused of exaggerating drops in unemployment by transferring people to Sickness Benefits, welfare commentator Lindsay Mitchell wrote in an October 2006 press release "There is a constant flow between benefits. Taking this into account the net gain from the unemployment benefit to the sickness benefit over the five years to April 2005 was 20,870. Over the same period the net gain from the Sickness Benefit to Invalid's Benefit was 26,302, bearing in mind the same beneficiary may have been transferred more than once."
Ruth Dyson, Minister for Social Development and Employment, reported, "...the main reason for people leaving the unemployment benefit is to enter paid work. In the last 8 years, 8.8 percent of all unemployment benefit cancellations were the result of a transfer to the sickness benefit, and less than one-third of 1 percent of all unemployment benefit cancellations were the result of a transfer to the invalids benefit. Those figures should finally put to rest the accusation that the Opposition spokesperson on social welfare consistently makes that these outstanding figures for the reduction in those on the unemployment benefit are as a result of a transfer to another benefit. That is not true; they are the result of people moving into paid work."
On 26 October 2006 the government announced a number of changes to the welfare system. Then Minister for Social Development and Employment David Benson-Pope later stated that, when implemented, the reforms will move between 3,000 and 6,000 people off the Sickness Benefit.
Supplementary benefits In addition to main benefits such as Unemployment Benefit, Superannuation, Sickness Benefit and Invalid's Benefit, a person may be entitled to other assistance depending on their circumstances. Examples of other assistance available at 1 December 2011 are: Accommodation Supplement – a weekly payment to assist people with the cost of rent, board or owning a home.