This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on 1 April 2011, does 2 things.
First, it increases most benefits, pensions, and allowances.
The rate of benefit payable to long-term hospital patients (if they have no dependent children and are married or in a civil union or a de facto relationship, or are single and in receipt of a benefit) is increased to maintain parity with the personal allowance payable to people with age-related care needs receiving subsidised residential care.
The increases to Child Disability Allowance and Disability Allowance reflect the extent to which the 3.75% increase in the New Zealand Consumers Price Index from the December 2009 quarter to the December 2010 quarter (calculated using the CPI All Groups for the first quarter and the CPI All Groups excluding cigarettes and other tobacco products for the other quarters) has not already been compensated for by the increases made on 1 October 2010 to reflect the increase in the rate of goods and services tax.
The other increases reflect the 3.75% increase fully.
Clauses 4 and 5 amend the Social Security Act 1964. Clause 4 increases the amounts of funeral grants. Clause 5 increases—
the following benefits or allowances: widow's, orphan's, unsupported child's, invalid's, unemployment, sickness, domestic purposes, child disability, disability, independent youth, and related emergency benefits; and
the rate of benefit payable to long-term hospital patients.
The maximum amount of income that a blind beneficiary may earn, and still receive a subsidy, is also increased, as are the asset and income limits in Schedule 31 of the Social Security Act 1964.
Clause 6 amends the New Zealand Superannuation and Retirement Income Act 2001 so as to increase the rates of New Zealand superannuation entitlements. The rates of New Zealand superannuation that are amended are the gross rates, but the CPI adjustment has been calculated in relation to the net rate in each case.
Secondly, clause 7 makes some additional increases to figures already increased by clause 6, to honour the Government's commitments in relation to the level of New Zealand superannuation.