Notice Type
Departmental
In the matter of section 5 of the Social Security Act 1964: To: The Director-General of Social Welfare. Pursuant to section 5 (2) of the Social Security Act 1964 (the Act), I, Peter John Gresham, Minister of Social Welfare, hereby give you the following direction. PART I Grants of Special Benefit In the exercise of your discretion to grant a special benefit under section 61g of the Act, and without derogating from your duty to have regard to the particular financial circumstances and commitments of the applicant, you shall have regard to the following matters. General principles 1. That the intention of a special benefit under the Act is to alleviate financial hardship and that a special benefit should not to be granted unless without the grant, the applicant or a person dependent upon the applicant would suffer financial hardship. 2. That a special benefit should not normally be granted unless the applicant's deficiency of income over his or her expenditure and commitments is reasonably substantial, and that deficiency is likely to continue for a period that justifies special benefit being granted. 3. That a special benefit should be considered only in respect of costs of the applicant that are essential and not reasonably avoidable. 4. That in considering any application for special benefit, consideration should be given to (a) The applicant's ability to meet the deficiency from the applicant's own resources; and (b) The assistance that is or might be available to the applicant from other sources to meet the applicant's deficiency. In particular, when considering (c) An application for a special benefit by a full-time student or the student's dependent spouse, you should take into account the availability of financial support during the academic year under the student allowance or student loan schemes; or (d) An application for special benefit for the costs of any essential health services or disability services (as those terms are defined in the Health and Disability Services Act 1993), you should take into account the assistance available under that Act, and special benefit should not normally be considered for expenses normally covered by the assistance available under those schemes or that Act unless the applicant has extraordinary expenses and has exhausted his or her entitlements under those schemes or that Act. Assessment procedure 5. That subject to paragraphs 8 and 9, where (a) An applicant for special benefit has cash assets (i) In the case of a single person, of a value of not more than the equivalent of four times the maximum weekly invalid's benefit rate payable to a single person; or (ii) In the case of a married person or a sole parent, of a value of not more than the equivalent of four times the maximum weekly invalid's benefit rate payable to a married couple; and (b) The applicant's disposable income is less than the appropriate standard costs, you should regard as justified the fixing of a special benefit at a rate which is the lesser of a and b where a is an amount equal to the difference between (c) The applicant's disposable income; and (d) The appropriate standard costs less $10 a week, and b is an amount equal to 30 percent of the applicant's allowable costs. Example A single unemployment beneficiary with 2 dependent children, whose weekly chargeable income is $210.45 and whose weekly allowable costs are $94.30. Paragraph 5 (b) calculation Chargeable income 210.45 less allowable costs 94.30 Disposable income 116.15 less standard costs 136.15 Deficiency (20.00) Calculation of the benefit: Paragraph 5 (c) is the disposable income $116.15 Paragraph 5 (d) is $136.15 $10 $126.15 The difference a $10 b is 30% of allowable costs $28.29 A special benefit of $10 a week is justified, subject to paragraphs 8 and 9. 6. That until the transfer to Regional Health Authorities of the responsibility for purchasing care for people with disabilities who are in residential care (intended to take place on 1 July 1995) and subject to paragraphs 8 and 9, a special benefit should be considered justified in respect of a person with psychiatric or physical disabilities who is in residential care and whose chargeable income is less than the specified amount. The rate of special benefit considered justified should be the difference between a and b where a is the specified amount and b is the persons chargeable income less the appropriate personal allowance. 7. That subject to paragraphs 8 and 9, a special benefit should be considered justified in respect of a person receiving training benefit under the Act who incurs additional accommodation costs because he or she is undergoing training away from his or her usual home. The rate of the special benefit considered justified should be the lesser of (a) The additional weekly accommodation costs incurred; and (b) $100 per week. 8. That upon completion of the appropriate calculation set out in paragraph 5, 6, or 7, you shall consider whether there is justification for increasing or decreasing the rate of special benefit paid to the applicant, or to fix or decline to fix an entitlement to special benefit, having regard to the principles set out in paragraphs 1 to 4 and to the following matters: (a) Whether the applicant has any special or unusual financial expenditure compared to others in a similar general position to the applicant and the extent of any such expenditure; (b) Whether the applicant has any special or unusual reasons for any expenditure item that has caused or contributed to his or her deficiency; (c) The nature of the financial difficulty, and the likely duration of the deficiency; (d) The age and health of the applicant and his or her dependents and any special needs arising from that age or health; (e) The ability of the applicant to improve his or her financial situation; (f) The causes of the applicant's financial difficulty; (g) The extent to which the basic necessities of life for the applicant or his or her dependents would be at risk if a grant of special benefit at the rate calculated, or another rate, was not made; (h) Any other matters that in the circumstances of the particular case, you consider to be relevant. 9. That nothing in this part of this direction requires you to grant a special benefit, or a special benefit at any particular rate, if, in your discretion, you determine that in the circumstances of the particular case, such grant ought not to be made. Application of Direction 10. That this Direction should be applied to applications for special benefit made on or after the 1st day of April 1995, and in respect of any reviews of that benefit on or after that day. PART II Administration of the Special Benefit Programme 1. In administering the programme of special benefits, you are to ensure that where practicable, persons receiving special benefit under the Act receive appropriate advice with the objective that wherever possible, their need for a special benefit is eliminated or reduced within 6 months after the later of (a) The date of any grant of a special benefit after the date of this direction; or (b) Any review of a special benefit after the date of this direction. 2. Cases where special benefit is being paid at a rate of more than $50 a week should receive priority under paragraph 1. PART III Definitions In this direction, the following definitions are used: Accommodation costs has the meaning in section 61e of the Act; Allowable costs, in relation to an applicant and subject to section 68a of the Act, means any regular essential expenses reckoned on a weekly basis arising out of the special circumstances of the applicant and his or her spouse (if any) which cannot readily be avoided or varied, and include (a) The applicant's actual accommodation costs including arrears, after the deduction of any accommodation supplement, rent rebate allowance, or tenure protection allowance payable, provided that any arrears incurred while the person was in receipt of accommodation benefit, accommodation supplement, rent rebate allowance, or tenure protection allowance under the Act are not to be included; and (b) Hire purchase and other types of regular payments for a washing machine or a refrigerator or a television set or for household furniture where the acquisition of that item was essential; and (c) Disability related expenses, being expenses of a kind for which a disability allowance would be payable under section 69c of the Act (but not including any counselling costs in excess of the amount made available by way of disability allowance under the Act) after the deduction of any disability allowance paid pursuant to that section; and (d) Motor vehicle repayments and reasonable running costs where (i) The vehicle is required for the transport of the applicant or his or her spouse to and from paid employment; or (ii) The applicant or a member of his or her family suffers chronic illness or has a disability and the vehicle is required for that persons transport, and no suitable public transport is available; (e) Motor vehicle repayments for an applicant who is a beneficiary where (i) There is no public transport available; and (ii) The agreement to acquire the vehicle on terms was entered into prior to the applicant applying for the benefit; (f) The costs of public transport to and from paid employment; (g) The costs of essential child care (after deducting any child care subsidy payable under the Child Care Subsidy Welfare Programme) (i) To enable the applicant or his or her spouse to take part in paid employment; or (ii) Because the applicant or his or her spouse is seriously disabled or seriously ill; (h) For a person for whom a telephone is a necessity by reason of his or her (i) Health or disability or family circumstances; or (ii) Personal safety or security (for example, an elderly person living on his or her own, or a separated person with a non-molestation order against the spouse); or (iii) Employment (for example, an electrical worker on call 24 hours per day), the basic cost of a telephone (excluding toll charges), but do not include: (i) Any fixed charges made in respect of a line or pipe used in the domestic supply to that person of telephone services, electricity, gas, or water; (j) The costs of any tuition the applicant or his or her spouse or any of the applicant's dependent children is undertaking (including stationery, books, fees, or other course related costs); (k) Any payments required to be made by the applicant or his or her spouse in respect of any debt, fine, or other liability, other than the payments or repayments referred to in paragraphs (a) to (h) of this definition; (l) Any fees charged by Post Office Bank Limited, a private savings bank, a trustee savings bank, the Public Service Investment Society Limited, a registered bank or a building society or a credit union for an account held by the applicant or the applicants spouse with that bank, society, building society, or credit union; Cash assets, in relation to any person, mean assets of that person and his or her spouse (if any) that can be readily converted into cash and include: (a) Shares, stocks, debentures, bonus bonds, and other bonds; (b) Bank accounts, including fixed and term deposits with any bank, friendly society, credit union, or building society; (c) Money invested with or lent to any bank or other financial institution; (d) The net equity held in any property or land not used as the person's home; (e) Building society shares; (f) Mortgage investments and other long term loans; (g) Bills of exchange or promissory notes; (h) The applicant's share in any partnership; but do not include (i) The motor vehicle principally used by the applicant for his or her personal use; (j) A caravan, boat, or other vehicle (i) The net equity in which is less than $2,000; or (ii) Which is used by the person or a member of his or her family for day to day accommodation; (k) The personal effects of the person and his or her spouse (if any); Chargeable income, in relation to an applicant, includes: (a) The amount of any benefit granted under Part I of the Act; and (b) Where the applicant is receiving unsupported child's benefit or orphan's benefit in respect of any child, the difference between (i) The amount of that benefit; and (ii) The maximum amount of family support that would be payable under the Income Tax Act 1976 in respect of a child of that age as if that child was the applicant's dependent child; and (c) Any war pension received under the War Pensions Act 1954; and (d) New Zealand Superannuation, Veteran's Pension, or transitional retirement benefit received under the Social Welfare (Transitional Provisions) Act 1990; and (e) Income, as defined in section 3 of the Act; and (f) The amount of any regular payments received under any welfare programme approved under section 124 (1) (d) of the Act (other than regular payments intended to pay or reimburse specified costs of the applicant); and (g) The amount of any child support payments (i) In the case of a non-beneficiary, received by the person under the Child Support Act 1991; or (ii) In the case of a beneficiary, paid to the person by the Child Support Agency pursuant to section 142 of that Act; and (h) The living costs component of the amount of any student allowance or student loan received by the applicant, and includes the chargeable income, as so defined, of his or her spouse (if any); Deficiency has the meaning in paragraph 2 of Part I of this Direction; Disposable income, in relation to an applicant, means the applicant's weekly chargeable income after the deduction of the applicant's allowable costs; Income, in paragraph 5 (c) of Part I of this Direction, means income as defined in section 3 of the Act; Non-beneficiary means a person who is not a beneficiary; Personal allowance means (a) In the case of a person with physical disabilities, $65.96; (b) In the case of a person with psychiatric disabilities, $25.35; (c) In the case of a person with both physical and psychiatric disabilities (i) $65.96 if that person's disabilities are predominantly physical; or (ii) $25.35 if that person's disabilities are predominantly psychiatric; Residential care, in respect of any person, means care received as a resident in a home either registered under section 18 of the Disabled Persons Community Welfare Act 1975 or approved by the Director-General as meeting the standards required for registration under that Act; Specified amount means (a) $326.98 in the case of a person who requires daily supervision but not the constant supervision of a caregiver; (b) $411.45 in the case of a person who requires 24 hour per day supervision and care; (c) $479.04 in the case of a person who requires 24 hour per day supervision and care plus active support and therapy such as day programmes and rehabilitation programmes; Standard costs, in relation to an applicant, means the appropriate amount set out in the Schedule to this direction, being the proportion of the living costs of the applicant and his or her dependents that he or she may be expected to meet (a) From his or her benefit; or (b) In the case of a non-beneficiary, from the appropriate rate of an unemployment benefit that would be payable to the applicant if he or she was entitled to that benefit, but do not include any of the applicant's allowable costs; and expressions otherwise defined in the Act shall have the meanings so defined unless the context otherwise requires. PART IV Revocation and savings 1. This Direction supersedes the Direction concerning special benefit dated 31 March 1994, which is hereby revoked with effect from midnight on 31 March 1995. 2. The revocation of that Direction does not affect the validity of, or the continuation of, any special benefit granted pursuant to it before that benefit is reviewed under the provisions of section 81 of the Act. Dated this 28th day of March 1995. PETER J. GRESHAM, Minister of Social Welfare. Schedule Standard Costs Qualification of Applicant Standard Income [kl] [kl] 1. For a person who is not a beneficiary, or who is in receipt of an unemployment benefit, job search allowance, or training benefit, and who is: (a) Single aged 16 or 17 years without dependent children $59.17 (b) Single aged 18 to 24 years without dependent children $59.17 (c) Single aged 25 years or more without dependent children $82.47 (d) Single with 1 dependent child $120.20 (e) Single with 2 or more dependent children $136.15 (f) Married without dependent children $154.71 (g) Married with 1 or more dependent children $159.78 2. For a person in receipt of an independent youth benefit $59.17 3. For a person in receipt of a sickness benefit and who is: (a) Single aged 16 or 17 years without dependent children $58.34 (b) Single aged 18 to 24 years without dependent children $81.43 (c) Single aged 25 years or more without dependent children $87.18 (d) Single with 1 dependent child $120.20 (e) Single with 2 or more dependent children $136.15 (f) Married without dependent children $181.00 (g) Married with 1 or more dependent children $174.75 4. For a person in receipt of a widow's benefit, or a domestic purposes benefit under section 27b of the Act (sole parent) or section 27c of the Act (woman alone), and who has: (a) No dependent children $87.18 (b) 1 dependent child $120.20 (c) 2 or more dependent children $135.15 5. For a person in receipt of a domestic purposes benefit under section 27g of the Act (care of sick or infirm) and who is: (a) Single aged 16 or 17 years without dependent children $78.84 (b) Single aged 18 years or more without dependent children $111.86 (c) A sole parent with 1 dependent child $145.05 (d) A sole parent with 2 or more dependent children $159.75 6. For a person in receipt of invalid's benefit or transitional retirement benefit and who is: (a) Single aged 16 or 17 years without dependent children $78.84 (b) Single aged 18 years or more without dependent children $111.86 (c) Single with 1 dependent child $145.05 (d) Single with 2 or more dependent children $159.75 (e) Married without dependent children $204.08 (f) Married with 1 or more dependent children $196.78 7. For a person in receipt of New Zealand Superannuation or veteran's pension and who is: (a) Single without dependent children and living alone $111.86 (b) Single without dependent children and not living alone $111.86 (c) Single with 1 dependent child $145.05 (d) Single with 2 or more dependent children $159.75 (e) Married without dependent children $204.08 (f) Married with 1 or more dependent children $196.78 8. For a married couple one of whom is in receipt of New Zealand Superannuation where the other is receiving sickness benefit $162.07 9. For a married couple one of whom is in receipt of New Zealand Superannuation where the other is receiving invalid's benefit or a transitional retirement benefit $188.27 10. For a married couple one of whom is in receipt of New Zealand Superannuation where the other is not receiving a benefit or is receiving unemployment benefit, job search allowance, or training benefit $130.57 11. For a married couple one of whom is receiving sickness benefit where the other is not receiving a benefit or is receiving unemployment benefit, job search allowance, or training benefit $149.50 12. For a married couple one of whom is receiving sickness benefit where the other is receiving an invalid's benefit or a transitional retirement benefit $177.88 13. For a married couple one of whom is receiving domestic purposes benefit under section 27g of the Act (care of sick or infirm) where the other is not receiving a benefit or is receiving unemployment benefit, job search allowance, or training benefit $146.38 14. For a married couple one of whom is receiving domestic purposes benefit under section 27g of the Act (care of sick or infirm) where the other is receiving a sickness benefit $177.88 15. For a married couple one of whom is receiving domestic purposes benefit under section 27g of the Act (care of sick or infirm) where the other is receiving an invalid's benefit or a transitional retirement benefit $204.08 16. For a married person whose spouse is unlawfully in New Zealand The standard costs that would otherwise apply to the applicant if he or she were unmarried
Publication Date
6 Apr 1995

Notice Number

1995-go2332

Page Number

909