Pursuant to section 5 and section 124 (1) (d) of the Social Security Act 1964, the Minister of Social Services and Employment:
(a) establishes and approves the welfare programme for special assistance set out in Part 1 of the Schedule;
(b) gives the direction set out in Part 2 of the Schedule;
(c) establishes and approves the amendment set out in Part 3 of the Schedule to the Work Start Grant Programme established and approved on 29 June 1999.
Dated at Wellington this 30th day of July 2002.
STEVE MAHAREY, Minister of Social Services and Employment.
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Schedule
Part 1
Pathways Payment Programme
1. Title-This programme is the Pathways Payment Programme.
2. Commencement-This programme comes into effect on 1 July 2002.
3. Purpose-The purpose of this programme is to encourage long-term beneficiaries with dependent children to enter the work force by reducing the financial barriers to working in the initial period of employment.
4. Interpretation-(1) In this programme, unless the context otherwise requires:
Act means the Social Security Act 1964.
applicant means a person applying for a grant under this programme.
bridging finance has the meaning in the Work Start Grant Programme.
pathways payment means the special assistance under this programme.
transition to work expenses has the meaning in the Work Start Grant Programme.
working-age benefit means any of the following benefits:
(a) An unemployment benefit.
(b) A sickness benefit.
(c) A domestic purposes benefit.
(d) An emergency benefit (other than an emergency benefit payable under section 17 (2) (c) of the New Zealand Superannuation Act 2001).
(e) An independent youth benefit.
(f) An invalids benefit.
(g) A transitional retirement benefit.
(h) A widows benefit.
Work Start Grant Programme means the welfare programme of that title approved under section 124 (1) (d) of the Act.
(2) Expressions otherwise defined in section 3 (1) of the Act have the meanings so defined.
5. Application of Social Security Act 1964-(1) Sections 12, 62, 63, 63A, 74, 74A, 76, 82 (other than 82 (6)), 84 and 86J of the Act apply to this programme as if a pathways payment were a benefit.
(2) Nothing in subclause (1) limits the application of any other section of the Act to this programme.
6. Pathways payment-(1) Subclause (2) applies to an applicant who:
(a) has entered employment; and
(b) either:
(i) was a person in receipt of a working-age benefit for at least 12 months that was cancelled because the person entered that employment; or
(ii) was the spouse of a person in receipt of a working-age benefit for at least 12 months that was cancelled because the applicant entered that employment; and
(c) before entering that employment, informed the chief executive that he or she was doing so; and
(d) has 1 or more dependent children.
(2) The chief executive may grant a pathways payment to an applicant to whom this subclause applies if neither the applicant nor the applicant's spouse has re-applied for or is receiving a working-age benefit.
(3) Only 1 pathways payment may be granted to an applicant in respect of the same employment.
(4) For the avoidance of doubt, an applicant in receipt of special assistance for transition to work expenses under the Work Start Grant Programme is eligible to receive a pathways payment in respect of entering employment.
7. Amount of pathways payment-(1) The amount of a pathways payment is, subject to subclause (2), the equivalent
of 2 times the amount of the working-age benefit that was payable to the applicant and the applicant's spouse (if any) in respect of the week immediately before the benefit was cancelled.
(2) If an applicant has been granted bridging finance under the Work Start Grant Programme, the amount of bridging finance payable in respect of the first 2 weeks of employment must be deducted from the amount calculated under subclause (1).
(3) For the avoidance of doubt, the amount of a working-age benefit does not include the amount of any other benefit payable to or in respect of the applicant or the applicant's spouse or dependent children.
8. Payment-(1) A pathways payment should be paid to the applicant in the week immediately following the date of the final payment of the working-age benefit.
(2) Where the cancelled working-age benefit was paid at a married rate, a pathways payment should be apportioned between and paid to the applicant and the applicant's spouse in the same proportions as the benefit was apportioned and paid to them immediately before the benefit was cancelled.
(3) Nothing in subclause (1) or subclause (2) obliges the chief executive to make any pathways payment on a particular date or to apportion it.
Explanatory Note
This note is not part of the programme, but is intended to indicate its general effect.
This programme provides assistance to certain beneficiaries entering the work force by making one-off payments to them equivalent to 2 weeks' benefit.
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Part 2
Direction on Pathways Debt Recovery Suspension
To: The chief executive of the Ministry of Social Development (the Department of Work and Income).
1. Title-This direction is the Direction on Pathways debt recovery suspension.
2. Commencement-This direction comes into effect on 1 July 2002.
3. Period for which this direction applies-This direction applies for the period from its commencement until:
(a) regulations under the Act come into force having the effect of suspending the benefit debts of persons in similar circumstances to those to whom this direction applies and for similar periods as recovery of benefit debts is suspended by this direction; or
(b) it is earlier revoked.
4. Interpretation-(1) In this direction, unless the context otherwise requires:
Act means the Social Security Act 1964.
benefit debt means an amount recoverable from any person as a debt due to the Crown under section 86 of the Act.
pathways payment means the special assistance under the Pathways Payment Programme approved under section 124 (1) (d) of the Act.
working-age benefit means any of the following benefits:
(a) An unemployment benefit.
(b) A sickness benefit.
(c) A domestic purposes benefit.
(d) An emergency benefit (other than an emergency benefit payable under section 17 (2) (c) of the New Zealand Superannuation Act 2001).
(e) An independent youth benefit.
(f) An invalids benefit.
(g) A transitional retirement benefit.
(h) A widows benefit.
(2) Terms otherwise defined in section 3 (1) of the Act have the meanings so defined.
5. Suspension of debt recovery for recipients of pathways payments and their spouses-(1) Subclause (2) applies to:
(a) any person (an applicant) who is granted a pathways payment; and
(b) the spouse of an applicant.
(2) For the period of 3 months after the date of cancellation of the working-age benefit in respect of which the pathways payment was granted, you should not take any action under section 86 or section 86A of the Act to recover a benefit debt from a person to whom this subclause applies.
(3) Subclause (2) does not apply if the applicant or the applicant's spouse has again been granted a working-age benefit.
Explanatory Note
This note is not part of the direction, but is intended to indicate its general effect.
This direction provides assistance to certain beneficiaries entering the work force by providing for suspension of recovery of their benefit debts for 3 months.
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Part 3
Work Start Grant Amendment 2002
1. Title-(1) This amendment is the Work Start Grant Amendment 2002.
(2) In this amendment, the Work Start Grant Programme is called "the programme".
2. Commencement-This amendment comes into effect on 1 July 2002.
3. Interpretation-Clause 2.1 of the programme is amended by inserting, after the definition of parents, the following definition:
"pathways payment means the special assistance under the Pathways Payment Programme approved under section 124 (1) (d) of the Act"
4. Ineligibility-Clause 6 of the programme is amended by adding the following subclause:
"6.3 An applicant who has been granted a pathways payment is not eligible for a grant for bridging finance in respect of the first 2 weeks of the period between the end of the benefit and the first payment of wages or salary."
Explanatory Note
This note is not part of the amendment, but is intended to indicate its general effect.
This amendment is consequential to the Pathways Payment Programme, which provides assistance to certain beneficiaries entering the work force by making one-off payments to them equivalent to 2 weeks' benefit. The amendment prevents double payments under the Work Start Grant Programme.