Social Security (Rates of Benefits and Allowances) (COVID-19 Recovery Package) Amendment Order 2020

2020/49

Coat of Arms of New Zealand

Social Security (Rates of Benefits and Allowances) (COVID-19 Recovery Package) Amendment Order 2020

Patsy Reddy, Governor-General

Order in Council

At Wellington this 23rd day of March 2020

Present:
The Right Hon Jacinda Ardern presiding in Council

This order is made under sections 452 and 452A of the Social Security Act 2018 and section 13 of the Interpretation Act 1999 on the advice and with the consent of the Executive Council.

Order

1 Title

This order is the Social Security (Rates of Benefits and Allowances) (COVID-19 Recovery Package) Amendment Order 2020.

2 Commencement

This order comes into force on 27 March 2020.

3 Principal order

This order amends the Social Security (Rates of Benefits and Allowances) Order 2020 (the principal order).

4 Clause 2 amended (Commencement)

In clause 2(2)(d), replace “4” with “3, 4,”.

5 Clause 6 amended (Discretionary increases under section 452 of Social Security Act 2018)

After clause 6(2), insert:

(3)

In each provision of the Social Security Act 2018 listed in the first column of Part 3 of Schedule 2 of this order, replace the amount set out opposite to that provision in the second column with the amount set out opposite to that provision in the third column.

(4)

In each provision of the Social Security Act 2018 listed in the first column of Part 4 of Schedule 2 of this order, replace the amount set out opposite to that provision in the second column with the amount set out opposite to that provision in the third column.

6 Schedule 1 amended

In Schedule 1, Part 1, item relating to Schedule 4, Part 3, after the item relating to clause 1(h)(ii), insert:

Clause 2358.07380.11
45.6347.03
7 Schedule 2 amended

(1)

In Schedule 2, the Part 1 heading, replace asset limits, etc with income limits, allowances, and asset limits.

(2)

In Schedule 2, Part 1, revoke the item relating to Schedule 4, Part 3, clause 2 and the heading above that item.

(3)

In Schedule 2, Part 1, insert in their appropriate numerical order:

Schedule 4, Part 6 (Youth payment and young parent payment income limits)
Clause 11220.90224.58
270.90274.58
Clause 12220.90224.58
320.90324.58

(4)

In Schedule 2, after Part 2, insert the Parts 3 and 4 set out in the Schedule of this order.

Schedule New Parts 3 and 4 of Schedule 2 of principal order

cl 7(4)

Part 3 COVID-19 Recovery Package increases to social security benefits

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 1 (Jobseeker support)
Clause 1(a)150.48175.48
Clause 1(b)188.10213.10
Clause 1(c)235.11260.11
Clause 1(d)225.74250.74
Clause 1(e)350.17375.17
Clause 1(f)350.17375.17
Clause 1(g)(i)188.10200.60
Clause 1(g)(ii)201.53214.03
Clause 1(h)(i)188.10200.60
Clause 1(h)(ii)214.96227.46
Clause 1(i)(i)188.10200.60
Clause 1(i)(ii)214.96227.46
Clause 1(j)(i)376.20401.20
Clause 1(j)(ii)403.06428.06
Clause 2188.10200.60
Clause 3(i)188.10200.60
Clause 3(ii)201.53214.03
Schedule 4, Part 2 (Sole parent support)
Clause 1350.17375.17
Schedule 4, Part 3 (Supported living payment)
Clause 1(a)228.31253.31
Clause 1(b)282.14307.14
Clause 1(c)397.50422.50
Clause 1(d)(i)235.11247.61
Clause 1(d)(ii)248.54261.04
Clause 1(e)(i)235.11247.61
Clause 1(e)(ii)261.96274.46
Clause 1(f)(i)235.11247.61
Clause 1(f)(ii)261.96274.46
Clause 1(g)(i)470.22495.22
Clause 1(g)(ii)497.08522.08
Clause 1(h)(i)235.11247.61
Clause 1(h)(ii)261.96274.46
Clause 2380.11392.61
47.0359.53
Clause 7(a)235.11247.61
Clause 7(b)261.96274.46
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 1188.10213.10
Clause 2177.34202.34
Clause 3350.17375.17
Clause 4188.10200.60
Clause 5(a)214.96227.46
Clause 5(b)201.53214.03
Schedule 4, Part 10 (Rates of generally abolished former widows’ benefits under section 21 of Social Security Act 1964 as saved by clause 55 of Schedule 1 of Social Security Act 2018 for reciprocity agreement applicants or recipients)
Clause 1350.17375.17
Clause 2235.11260.11
Schedule 4, Part 11 (Rates of generally abolished former DPB for solo parents under section 27B of Social Security Act 1964 as saved by clause 55 of Schedule 1 of Social Security Act 2018 for reciprocity agreement applicants or recipients)
Clause 1350.17375.17
Clause 2235.11260.11

Part 4 COVID-19 Recovery Package increases to winter energy payment

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 8 (Winter energy payment)
Clause 1(a)450900
Clause 1(b)7001,400
Clause 1(c)7001,400

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order, which comes into force on 27 March 2020, amends the Social Security (Rates of Benefits and Allowances) Order 2020 (the principal order) made under the Social Security Act 2018 (the Act). Adjustments or increases made by the principal order (including those adjustments or increases as amended by this order) come into force at, or immediately after, the start of 1 April 2020.

Mandatory adjustment: rate of supported living payment

Clauses 6 and 7(2) relocate, in the principal order, the item relating to the increase in the rate of supported living payment set out in clause 2 of Part 3 of Schedule 4 of the Act. To correct a misdescription of the increase, this item is relocated, in the principal order, from Part 1 of Schedule 2 (discretionary increases) to Part 1 of Schedule 1 (mandatory adjustments).

Discretionary increases: income limits for youth payment and young parent payment

Clause 7(3) makes discretionary increases, inadvertently omitted from Part 1 of Schedule 2 of the principal order, to income limits for youth payment and young parent payment. These increases are informed by the increase of 1.66% in the New Zealand Consumers Price Index from the December 2018 quarter to the December 2019 quarter.

Discretionary increases: COVID-19 Recovery Package increases to social security benefits

Clauses 5 and 7(4) insert in the principal order new clause 6(3) and new Part 3 of Schedule 2. To address economic impacts of COVID-19, that new Part 3 makes discretionary increases to rates of the following benefits:

  • jobseeker support:

  • sole parent support:

  • supported living payment:

  • youth payment and young parent payment:

  • former widows’ benefit:

  • former domestic purposes benefit.

Discretionary increases: COVID-19 Recovery Package increases to winter energy payment

Clauses 5 and 7(4) also insert in the principal order new clause 6(4) and new Part 4 of Schedule 2. To address economic impacts of COVID-19, that new Part 4 makes discretionary increases to rates of winter energy payment. These increases will apply for the 22-week winter period starting on 1 May 2020.

Order is confirmable instrument and annual confirmable instrument

This order is a confirmable instrument, and an annual confirmable instrument, under section 47B of the Legislation Act 2012. It is revoked, or taken to have been invalid for past operation, at the close of 30 June 2021 unless earlier confirmed by an Act of Parliament. That stated time is the applicable deadline under section 47C(1)(a) of the Legislation Act 2012.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 26 March 2020.

This order is administered by the Ministry of Social Development.