This Supplementary Order Paper amends the Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill (the Bill), which in turn amends the Social Security Act 1964 (the principal Act) and other enactments.
Clause 2 of the Bill (commencement) is amended by this Supplementary Order Paper so that provisions that will commence by Order in Council are specified and the remaining provisions will commence on the day after Royal assent.
This Supplementary Order Paper amends clause 4 of the Bill to insert 2 new definitions into section 3 of the principal Act: a definition of NCEA level 2 and a definition of young person. The definition of young person will need to change on 3 occasions, as new provisions come into force. For this reason, the amendments to clause 4 effectively contain 3 alternative definitions of young person, each contained in a different subclause, and each will commence in turn and replace or amend the definition that preceded it.
This Supplementary Order Paper inserts new clause 19A into the Bill, amending section 125A of the principal Act to provide that it is not necessary for regulations to state the kind or description of services in relation to Parts 1 to 1P and 2 in order for the chief executive to enter into a contract with a contracted service provider for the provision of those services.
New clause 21A is inserted into the Bill by this Supplementary Order Paper to amend section 125G of the principal Act to clarify that the section relates to the actions of contracted service providers in relation to young persons, and to insert an internal definition of contracted service provider.
The Supplementary Order Paper amends clause 24 of the Bill to add a supported living payment under section 40D (on ground of caring for a patient requiring care) to the list of benefits in section 162(2) that a young person is not eligible to be granted while the young person is receiving a continued youth payment under section 162(1) of the principal Act. It also amends clause 27 of the Bill to achieve the same effect in relation to a young person receiving a continued young parent payment under section 168(2). Those amendments also serve to clarify that the requirement for young persons in receipt of a youth support payment to continue to receive youth services for at least 6 months does not apply to young persons who qualify for a supported living payment under section 40B of the principal Act (on ground of sickness, injury, disability, or total blindness).
New clause 27A, which inserts a new paragraph (ea) after section 170(1)(e) of the principal Act, is inserted by this Supplementary Order Paper. New paragraph (ea) creates an obligation on certain recipients of youth support payments to give to the department or to a contracted service provider details of the young person’s accommodation costs and service costs and other lawful debts and liabilities, as well as other information reasonably required by the chief executive of the department in order to effect money management. A young person may already be required to provide this information under section 11D of the principal Act, but the inclusion of this requirement as an obligation under section 170 clarifies that the failure to provide the required information within 20 working days after the date on which the young person is notified that he or she is required to receive youth services is an obligations failure that may attract sanctions.
Clause 28 of the Bill is amended by this Supplementary Order Paper to remove from section 171 of the principal Act provisions relating to sanctions, because those provisions will now be located in new section 174AA (see changes to clause 31 of the Bill). Clause 28 of the Bill is also amended to update a cross-reference in new section 171(7).
This Supplementary Order Paper amends clause 29 of the Bill to insert new section 171A(2AA), which provides that, in exercising the discretion to require referral of a young person to youth services, the chief executive of the department can consider factors such as funding and capacity to provide the services. New section 171A(4) in clause 29 is also amended to include section 176(4) of the principal Act in the list of provisions that apply to a young person required to receive youth services under new section 171A(2).
Clause 31 of the Bill is amended by this Supplementary Order Paper to insert new section 174AA, which relates to sanctions for failure by a young spouse or partner of a specified beneficiary to comply with obligations. The new provision effectively extends the youth sanctions regime to all young people on money management. It also provides that, if a young spouse or partner of a specified beneficiary who is not subject to money management fails to comply with an obligation placed on the young person under section 171, that failure is treated as failure to comply with the work test or with work preparation obligations and attracts the relevant sanctions.
The Supplementary Order Paper amends clause 32 of the Bill to repeal section 179(4)(b), because that provision (which deals with how payment of certain benefits is to be effected when no money management method has yet been prescribed) is no longer required given that the Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 are in place.
Clause 35 of the Bill is amended by this Supplementary Order Paper to revoke the definition of young person from regulation 3(1) of the Social Security (Contracts and Information Sharing with Service Providers) Regulations 2012, because the regulations will now rely on the definition of young person inserted in section 3 of the principal Act by this Supplementary Order Paper (see clause 4).
The Supplementary Order Paper inserts new clause 38A into the Bill to amend regulation 7 of the Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 as a consequence of the insertion of the new obligation in new section 170(1)(ea) of the principal Act (see new clause 27A).
Departmental disclosure statement
The Ministry of Social Development considers that a departmental disclosure statement is not required to be prepared for this Supplementary Order Paper.