Social Security (Rates of Benefits and Allowances) Order 2021

Order

1 Title

This order is the Social Security (Rates of Benefits and Allowances) Order 2021.

2 Commencement

This order comes into force on 1 April 2021.

3 Mandatory adjustments under section 452A of Social Security Act 2018

(1)

In each provision of the Social Security Act 2018 listed in the first column of Part 1 of Schedule 1 of this order, replace, in each place, 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.

(2)

By virtue of section 452A(5) of the Social Security Act 2018, this clause—

(a)

comes into force on 1 April 2021; and

(b)

applies to benefits (within the meaning of that Act) payable on and after that date.

4 Mandatory adjustments under section 453 of Social Security Act 2018

(1)

In each provision of the Social Security Act 2018 listed in the first column of Part 2 of Schedule 1 of this order, replace, in each place, 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.

(2)

By virtue of section 453(5) of the Social Security Act 2018, this clause—

(a)

comes into force on 1 April 2021; and

(b)

applies to benefits (within the meaning of that Act) payable on and after that date.

5 Mandatory adjustments under sections 15 and 16 of New Zealand Superannuation and Retirement Income Act 2001

(1)

In each provision of the New Zealand Superannuation and Retirement Income Act 2001 listed in the first column of Part 3 of Schedule 1 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 fourth column.

(2)

By virtue of section 15(6) of the New Zealand Superannuation and Retirement Income Act 2001, this clause—

(a)

comes into force on 1 April 2021; and

(b)

applies to New Zealand superannuation payable on and after that date.

6 Discretionary increases under section 452 of Social Security Act 2018

(1)

In each provision of the Social Security Act 2018 listed in the first column of Part 1 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.

(2)

In each provision of the New Zealand Superannuation and Retirement Income Act 2001 listed in the first column of Part 2 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.

Schedule 1 Mandatory adjustments

cls 3, 4, 5

Part 1 Average weekly earnings wage adjustments to social security benefits and allowances

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 1 (Jobseeker support)
Clause 1(a)175.48180.91
Clause 1(b)213.10219.70
Clause 1(c)260.11268.16
Clause 1(d)250.74258.50
Clause 1(e)375.17386.78
Clause 1(f)375.17386.78
Clause 1(g)(i)200.60206.81
Clause 1(g)(ii)214.03220.65
Clause 1(h)(i)200.60206.81
Clause 1(h)(ii)227.46234.50
Clause 1(j)(i)401.20413.62
Clause 1(j)(ii)428.06441.30
Clause 2200.60206.81
Clause 3(i)200.60206.81
Clause 3(ii)214.03220.65
Schedule 4, Part 2 (Sole parent support)
Clause 1375.17386.78
Schedule 4, Part 3 (Supported living payment)
Clause 1(a)253.31261.15
Clause 1(b)307.14316.65
Clause 1(c)422.50435.58
Clause 1(d)(i)247.61255.27
Clause 1(d)(ii)261.04269.12
Clause 1(e)(i)247.61255.27
Clause 1(e)(ii)274.46282.96
Clause 1(g)(i)495.22510.54
Clause 1(g)(ii)522.08538.24
Clause 1(h)(i)247.61255.27
Clause 1(h)(ii)274.46282.96
Clause 2392.61442.27
59.5361.38
Clause 7(a)247.61255.27
Clause 7(b)274.46282.96
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 1213.10219.70
Clause 2202.34208.60
Clause 3375.17386.78
Clause 4200.60206.81
Clause 5(a)227.46234.50
Clause 5(b)214.03220.65
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 1375.17386.78
Clause 2260.11268.16
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 1375.17386.78
Clause 2260.11268.16

Part 2 CPI adjustments to social security benefits and allowances

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 4 (Orphan’s benefit)
Clause 1(a)262.59265.62
Clause 1(b)244.11246.93
Clause 1(c)225.55228.15
Clause 1(d)200.71203.03
Schedule 4, Part 5 (Unsupported child’s benefit)
Clause 1(a)262.59265.62
Clause 1(b)244.11246.93
Clause 1(c)225.55228.15
Clause 1(d)200.71203.03
Schedule 4, Part 12 (Rates of benefits payable to long-term hospital patients)
Clause 146.0346.56

Part 3 Adjustments to superannuation entitlements

Provision amendedOld amount ($)CPI adjusted amount ($)
(required by section 15 of NZS&RI Act)
New amount ($)
(required by sections 15 and 16 of NZS&RI Act)
Schedule 1, Part 1 (Rates generally)
Clause 1(a)490.73496.66506.64
Clause 1(b)451.29456.69466.03
Clause 1(c)372.27376.73384.46
Schedule 1, Part 2 (Rates saved by Schedule 1AA)
Clause 1(b)705.26714.16728.64

Note: In this Part, NZS&RI Act means the New Zealand Superannuation and Retirement Income Act 2001.

Schedule 2 Discretionary increases

cl 6

Part 1 Increases to social security, income limits, allowances, and asset limits

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 11224.58227.18
274.58277.18
Clause 12224.58227.18
324.58327.18
Schedule 4, Part 9 (Child disability allowance and disability allowance)
Clause 149.2649.83
Clause 265.3666.11
Clause 340.7741.24
Schedule 5, Part 1 (Asset limits)
Clause 11,113.361,126.21
Clause 21,855.151,876.56
Clause 31,461.891,478.76
Clause 41,570.351,588.47
Schedule 5, Part 2 (Income limits)
Clause 5508.54514.41
Clause 6584.46591.20
Clause 7848.92858.72
Clause 8709.22717.40
Clause 9747.20755.82
Schedule 5, Part 3 (Disability allowance income limits)
Clause 10549.57555.91
Clause 11676.61692.52
Clause 121,006.821,031.20
Clause 13766.47775.31
Clause 14807.54816.86

Part 2 Increases to superannuation entitlements

Provision amendedOld amount ($)New amount ($)
Schedule 1, Part 1 (Rates generally)
Clause 346.0346.56
Schedule 1, Part 2 (Rates saved by Schedule 1AA)
Clause 1(a)744.54768.92

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 1 April 2021, increases a range of benefits, allowances, asset limits, and superannuation entitlements, etc, that are payable on and after 1 April 2021. The increases reflect both mandatory adjustments and discretionary increases.

Where a net average weekly earnings adjustment is required, it reflects the increase of 3.10% in the net average wage from the December 2019 quarter to the December 2020 quarter.

Annual net average wage weekly earnings adjustments are required under section 452A of the Social Security Act 2018 for the following benefits:

  • jobseeker support:

  • sole parent support:

  • supported living payment:

  • youth payment and young parent payment:

  • former widow’s benefit:

  • former domestic purposes benefit.

These increases are set out in Part 1 of Schedule 1.

Where an annual consumers price index (CPI) increase is required, it reflects the increase of 1.15% in the New Zealand Consumers Price Index from the December 2019 quarter to the December 2020 quarter, calculated for all quarters using the New Zealand Consumers Price Index (All Groups), excluding cigarettes and other tobacco products.

Annual CPI increases are required under section 453 of the Social Security Act 2018 for the following benefits: orphan’s benefit, unsupported child’s benefit, and the hospital rate.

These increases are set out in Part 2 of Schedule 1.

Annual CPI increases are also required, under section 15 of the New Zealand Superannuation and Retirement Income Act 2001, for superannuation entitlements. Those increases may sometimes be more than the CPI increase in order to meet the further requirements (in sections 15(3)(a) and (b) and 16 of that Act) that the increases maintain a specified relationship to the net average wage and also maintain the proportional relationship of specified rates. The total of the increases required by both sections 15 and 16 of the Act is set out in Part 3 of Schedule 1.

The discretionary increases made under section 452 of the Social Security Act 2018 are in respect of—

  • the abatement rates and income limits for the youth payment and young parent payment:

  • the rates of child disability allowance and disability allowance:

  • various asset and income limits that may be applied to certain assistance:

  • the disability allowance income limits:

  • the hospital rate payable to a superannuitant set out in clause 3 of Part 1 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001:

  • the rate payable to a superannuitant set out in clause 1(a) of Part 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001.

These increases are set out in Schedule 2.

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 2022 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: 25 February 2021.

This order is administered by the Ministry of Social Development.