Pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964, the Minister for Social Development and Employment makes the following instrument.
Dated this 29th day of August 2010.
HON PAULA BENNETT, Minister for Social Development and Employment.
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I n s t r u m e n t
1. Title-This instrument is the Instrument amending Special Needs Grants and Recoverable Assistance Programmes and Direction on Advance Payment of Benefits 2010.
2. Commencement-This instrument comes into effect on 27 September 2010.
3. Amendments to Special Needs Grants Programme-The Special Needs Grants Programme (as established and approved on 18 December 1998)1 is amended in the manner set out in Schedule 1.
4. Amendments to Recoverable Assistance Programme-The Recoverable Assistance Programme
(as established and approved on 15 February 1999)2 is amended in the manner set out in Schedule 2.
5. Amendment to Direction on Advance Payment of Benefits-The Direction on Advance Payment of Benefits given on 25 May 19993 is amended in the manner set out in Schedule 3.
Schedule 1
Clause 3
Amendments to Special Needs Grants Programme
Clause 3.1
Insert in their appropriate alphabetical order:
"applicable payment means any of the following:
(a) an advance payment of a benefit under section 82(6) of the Act:
(b) a grant under this programme (excluding a grant under any of Parts 5, 6, and 6A):
(c) a payment under the Recoverable Assistance Programme established and approved under section 124(1)(d) of the Act on 15 February 1999 (excluding a payment under Part 3A)"
"budgeting activity means an activity referred to in clause 9.15 or, as the case requires, an activity referred to in clause 9.8 of the Recoverable Assistance Programme or regulation 6 of the Social Security (Advance Payment of Benefit) Regulations 2010"
"specified period, in relation to an application for a grant, means-
(a) a period that starts on 27 September 2010 and ends on the date on which the application is made, if that period is less than 12 months; or
(b) the preceding period of 12 months that ends on the date on which the application is made, if that date is 12 months or more after 27 September 2010".
Clause 9
Insert after clause 9.11:
"9.12 The chief executive may, in the circumstances set out in clause 9.13, request an applicant for a grant under this programme (other than for a grant under any of Parts 5, 6, and 6A) or the applicant’s spouse or partner (if any), or both, to undertake a budgeting activity.
9.13 The circumstances referred to in clause 9.12 are as follows:
(a) the applicant has received 3 or more applicable payments within the specified period; or
(b) paragraph (a) does not apply to the applicant, but the chief executive, after taking into account the following matters, considers that it would be beneficial for the applicant or the applicant’s spouse or partner (if any), or both, to undertake a budgeting activity to better manage their finances:
(i) the applicant has received repeated applicable payments for the same cost (whether the payments were received before or after 27 September 2010:
(ii) the applicant’s history of receiving multiple applicable payments (whether that history relates to a period before or after 27 September 2010):
(iii) the amount of the applicant’s debts that are due to the Crown (within the meaning of section 85A of the Act) and whether that amount is materially significant to the management of the applicant’s finances.
9.14 If 1 or more applicable payments are made to the applicant on the same day, those payments are to be counted as 1 applicable payment under clause 9.13.
9.15 The kinds of budgeting activities that the chief executive may request an applicant or the applicant’s spouse or partner (if any), or both, to undertake are as follows:
(a) completing a budgeting work sheet or a work sheet approved by the chief executive that sets out income against expenditure:
(b) attending a budgeting course or seminar approved by the chief executive that teaches how to prepare a budget or to improve budgeting skills:
(c) seeking assistance from a recognised budgeting advice service.
9.16 This clause applies in respect of an applicant if the chief executive is satisfied that-
(a) the applicant or the applicant’s spouse or partner has failed to take reasonable steps to reduce his or her costs or increase his or her income or better manage his or her finances; or
(b) the applicant or the applicant’s spouse or partner has failed to take all necessary steps to obtain any assistance towards his or her costs from any other source from which he or she may be entitled to assistance; or
(c) the applicant or the applicant’s spouse or partner has failed to comply with-
(i) a request to undertake a budgeting activity under clause 9.12 of this programme or clause 9.5 of the Recoverable Assistance Programme; or
(ii) a requirement to undertake a budgeting activity under section 82(6B) of the Act.
9.17 If clause 9.16 applies, the chief executive may refuse to make a grant or any subsequent grant, to or in respect of the applicant.
9.18 In this clause, reasonable steps, in relation to better managing a person’s finances, includes complying with a request or requirement to undertake a budgeting activity under clause 9.5 of the Recoverable Assistance Programme or under section 82(6B) of the Act."
Schedule 2
Clause 4
Amendments to Recoverable Assistance Programme
Clause 3.1
Insert in their appropriate alphabetical order:
"applicable payment means any of the following:
(a) an advance payment of a benefit under section 82(6) of the Act:
(b) a grant under the Special Needs Grant Programme established and approved under section 124(1)(d) of the Act on 18 December 1998 (excluding a grant under any of Parts 5, 6, and 6A):
(c) a payment under this programme (excluding a payment under Part 3A)"
"budgeting activity means an activity referred to in clause 9.8 or, as the case requires, an activity referred to in clause 9.15 of the Special Needs Grants Programme or regulation 6 of the Social Security (Advance Payment of Benefit) Regulations 2010"
"specified period, in relation to an application for a grant, means-
(a) a period that starts on 27 September 2010 and ends on the date on which the application is made, if that period is less than 12 months; or
(b) the preceding period of 12 months that ends on the date on which the application is made, if that date is 12 months or more after 27 September 2010".
Clause 9
Insert after clause 9.4:
"9.5 The chief executive may, in the circumstances set out in clause 9.6, request an applicant for a payment under this programme (other than for
a payment under Part 3A) or the applicant’s spouse or partner (if any), or both, to undertake a budgeting activity.
9.6 The circumstances referred to in clause 9.5 are as follows:
(a) the applicant has received 3 or more applicable payments within the specified period; or
(b) paragraph (a) does not apply to the applicant, but the chief executive, after taking into account the following matters, considers that it would be beneficial for the applicant or the applicant’s spouse or partner (if any), or both, to undertake a budgeting activity to better manage their finances:
(i) the applicant has received repeated applicable payments for the same cost (whether the payments were received before or after 27 September 2010:
(ii) the applicant’s history of receiving multiple applicable payments (whether that history relates to a period before or after 27 September 2010):
(iii) the amount of the applicant’s debts that are due to the Crown (within the meaning of section 85A of the Act) and whether that amount is materially significant to the management of the applicant’s finances.
9.7 If 1 or more applicable payments are made to the applicant on the same day, those payments are to be counted as 1 applicable payment under clause 9.6.
9.8 The kinds of budgeting activities that the chief executive may request an applicant or the applicant’s spouse or partner (if any), or both, to undertake are as follows:
(a) completing a budgeting work sheet or a work sheet approved by the chief executive that sets out income against expenditure:
(b) attending a budgeting course or seminar approved by the chief executive that teaches how to prepare a budget or to improve budgeting skills:
(c) seeking assistance from a recognised budgeting advice service.
9.9 This clause applies in respect of an applicant if the chief executive is satisfied that-
(a) the applicant or the applicant’s spouse or partner has failed to take reasonable steps to reduce his or her costs or increase his or her income or better manage his or her finances; or
(b) the applicant or the applicant’s spouse or partner has failed to take all necessary steps to obtain any assistance towards his or her costs from any other source from which he or she may be entitled to assistance; or
(c) the applicant or the applicant’s spouse or partner has failed to comply with-
(i) a request to undertake a budgeting activity under clause 9.5 or clause 9.12 of the Special Needs Grant Programme; or
(ii) a requirement to undertake a budgeting activity under section 82(6B) of the Act.
9.10 If clause 9.9 applies, the chief executive may refuse to make a payment, or any subsequent payment, to or in respect of the applicant under this programme.
9.11 In this clause, reasonable steps, in relation to better managing a person’s finances, includes complying with a request or requirement to undertake a budgeting activity under clause 9.12 of the Special Needs Grant Programme or under section 82(6B) of the Act."
Schedule 3
Clause 5
Amendment to Direction on Advance Payments of Benefit
Preamble
Insert as the second paragraph:
"In determining under section 82(6C)(a) of the Social Security Act 1964 whether you are satisfied that an applicant for an advance payment of a benefit or
an applicant’s spouse or partner has failed to take reasonable steps to better manage his or her finances, you must have regard to a failure by that person to comply with a request to undertake a budgeting activity made under clause 9.12 of the Special Needs Grants Programme or clause 9.5 of the Recoverable Assistance Programme."
Explanatory Note
This note is not part of the Instrument, but is intended to indicate its general effect.
This instrument, which comes into effect on 27 September 2010, amends the Special Needs Grant Programme and the Recoverable Assistance Programme. The amendments give discretion to the chief executive to request an applicant for assistance under those programmes or an applicant’s spouse or partner, or both, to undertake a budgeting activity in certain circumstances that are specified in the new clause 9.13 of the Special Needs Grant Programme and new
clause 9.6 of the Recoverable Assistance Programme.
They also give discretion to the chief executive to refuse to make a grant or payment under those programmes if the applicant or the applicant’s spouse or partner has failed to do any of the following:
- To take reasonable steps to reduce his or her costs or increase his or her income or better manage his or her finances;
- take all necessary steps to obtain any assistance towards his or her costs from any other source from which he or she may be entitled to assistance;
- comply with a request to undertake a budgeting activity under the programme concerned.
1New Zealand Gazette, 28 January 1999, No. 8, page 202
2New Zealand Gazette, 25 February 1999, No. 23, page 567
3New Zealand Gazette, 2 June 1999, No. 75, page 1687