Pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964, the Minister for Social Development makes the following instrument.
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I n s t r u m e n t
1. Title-This instrument is the Employment and Work Readiness Assistance Amendment 2014.
2. Commencement-(1) This instrument, except for the provisions referred to in subclauses (2) and (3), comes into force on 1 July 2014.
(2) Clauses 1 to 3, 6(3) and 8(1) come into force on the day after the date on which this instrument is made.
(3) Clauses 8(3) and (4) and 9(9) come into force immediately after clause 8(2) comes into force.
3. Principal programme-This instrument amends the Employment and Work Readiness Assistance Programme1 (as established and approved on 6 March 2014) (the principal programme).
4. Clause 4 amended (Interpretation)-(1) In clause 4(1), insert the following definitions in their appropriate alphabetical order:
"applicant-
(a) means a person (other than the person's spouse or partner) who, in accordance with a requirement under clause 7(1), has completed an application form for any assistance; and
(b) includes any other person in respect of whom the chief executive has made, or proposes to make, a decision under clause 6(1) to grant or refuse any assistance.
cash assets has the same meaning as in section 61E(1) of the Act.
employment has the same meaning as in section 3(1)
of the Act but, except for the purposes of the definition of employment A in clause 6(1)(c)(ii) of the Schedule, does not include-
(a) employment as a sex worker or as an operator of a business of prostitution (as those terms are defined in the Prostitution Reform Act 2003); or
(b) employment in any other occupation of a kind that provides, or directly facilitates the provision of, services-
(i) for the sexual gratification of one or more other persons; and
(ii) that are provided for payment or other reward (irrespective of whether the reward is given to the person providing the services or another person).
employment-related training means training (including industry, sector, job-specific, or on-the-job training) designed to increase a person's skills for employment.
non-qualified spouse or partner means a person who
is not qualified in his or her own right to receive
New Zealand superannuation or a veteran's pension and who is the spouse or partner of a person who has elected to receive-
(a) New Zealand superannuation at the appropriate rate set out in clause 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001; or
(b) a veteran's pension at the appropriate rate set out in clause 2 of Schedule 11 of the War Pensions Act 1954.
short-term employment-related training course means a course of employment-related training of not more than 12 weeks' duration.
specified regulations means the Social Security (Contracts and Information Sharing with Service Providers) Regulations 2012 (SR 2012/210).
stand down period has the same meaning as in section 80BA of the Act.
year, in relation to an education or employment-related training course, means the period of 52 weeks commencing on the later of,-
(a) the date of any application for assistance for the course required under clause 7; or
(b) in a case where assistance for the course is granted without an application, the date of the grant; or
(c) the date of commencement of the course.
youth service means services of the kind referred to in section 123E(a) of the Act and Regulation 4 of the specified regulations."
(2) In clause 4(1), replace the definition of services with:
"services, except in the definition of employment, means services of a kind specified in the specified regulations".
(3) In clause 4(1), replace the definition of sustainable employment with:
"sustainable employment,-
(a) means a period of employment that results in a person not receiving a main benefit under the Act for a period of 91 days or longer; and
(b) for a person who is receiving a main benefit under the Act and is unable to engage in full-time employment because of sickness, injury, or disability, includes employment that results in the reduction of benefit payments to the person".
(4) In clause 4(1), replace the definition of young person with:
"young person means,-
(a) except for the purpose of the youth service, a person aged at least 16 years but under the age of 20 years; and
(b) for the purpose of the youth service, a person aged at least 15 years but under the age of 18 years."
5. Clause 5 amended (Application of the Act)-(1) In clause 5(1)(b), replace "person granted assistance under this programme" with "applicant".
(2) In clause 5(1)(c), replace "a person to whom paragraph (b) applies" with "an applicant".
6. Clause 6 amended (Employment or work readiness assistance: eligibility)-(1) In clause 6(1), replace "a person" with "an applicant".
(2) In clause 6(2),-
(a) replace "(5) and" with "(5),":
(b) replace "principles" with "matters".
(3) After clause 6(2) insert:
"(2A) In the exercise of the discretion under subclause (1), the chief executive may from time to time -
(a) promulgate guidelines not inconsistent with this programme for staff of the department exercising delegated authority for the purpose of targeting assistance or assistance of a specified kind towards eligible people or specified cohorts of eligible people the chief executive considers most at risk of long-term benefit receipt, including the specification of eligibility criteria for that purpose; and
(b) establish and conduct pilot schemes to provide specified kinds of assistance to specified cohorts of eligible people for the purpose of evaluating their effectiveness in achieving the purpose of this programme, including the specification of eligibility criteria for the schemes; and
(c) not provide or discontinue the provision of any specified kind of assistance that, after evaluation, the chief executive considers is not effective to achieve the purpose of this programme.
(2B) A condition imposed under subclause (1) may include a condition that the assistance granted is recoverable in one or more specified circumstances, and in any of those circumstances the assistance is recoverable accordingly and is a debt due to the Crown for the purposes of section 85A(d)(ii) of the Act."
(4) In clause 6(3)(c)(i), after "receiving", insert "(or who has been granted subject to a stand down period)".
(5) In clause 6(3)(c), after subparagraph (i), insert:
"(ia) a person who has applied for and been assessed as eligible for a main benefit under the Act:".
(6) In clause 6(3)(c), after subparagraph (vi), insert:
"(vii) a person who is receiving New Zealand superannuation or a veteran's pension as a
non-qualified spouse or partner."
(7) In clause 6(4), replace "person" with "applicant".
7. Clause 8 amended (Principles to be applied in exercise of discretion to grant assistance)-(1) In the heading to clause 8, replace "Principles" with "Matters".
(2) In clause 8, after "chief executive", insert "may have regard to an eligible person's cash assets and income (including the cash assets and income of the person's spouse or partner, if any) and".
(3) In clause 8(c)(iv), replace "workforce:" with "workforce; and".
(4) Replace clause 8(d) with:
"(d) any policy of the Government relating to employment or work readiness assistance or a specified kind of employment or work readiness assistance; and
(e) for an eligible person under clause 6(3)(c)(i), the kind of work-related obligations (if any) the person has under the Act depending on whether the person is a work-tested beneficiary, a part-time work-tested beneficiary, or a person who is required to comply with obligations under section 60Q of the Act; and
(f) whether section 60H(3) of the Act (which relates to voluntary unemployment) applies to an eligible person or would apply to the person if he or she were a person to whom section 60H(2) of the Act applied; and
(g) in relation to an eligible person and any specified kind of employment or work readiness assistance, whether the person is or may be entitled to any other publicly funded assistance for the same or a similar purpose under the Act or another enactment."
8. Clause 12 amended (Revocations)-(1) After clause 12(2), insert:
"(3) The following welfare programmes established and approved under section 124(1)(d) of the Act are revoked on the close of 30 June 2014:
(a) the Course Participation Assistance Programme2:
(b) the Training Incentive Allowance Programme3:
(c) the Transition to Work Grant Programme4.
(4) The Direction in relation to section 124(1)(d) and (1A) 20125 given under section 5 of the Act is consequentially revoked on the close of 30 June 2014."
(2) Revoke the remaining provisions of the Ministerial Guidelines for Employment and Training Assistance referred to in clause 12(2).
(3) In clause 12(1), delete "(other than the provisions referred to in subclause (2))".
(4) Revoke clause 12(2).
9. Clause 13 amended (Savings and transitional provisions)-(1) In clause 13(1), after "training assistance", insert "or special assistance".
(2) In clause 13(1), after "and Training Assistance", insert "or welfare programmes".
(3) In clause 13(1), after "clause 12", insert "or by that clause as amended by the Employment and Work Readiness Assistance Amendment 2014".
(4) In clause 13(1)(a), after "programme", insert "or, as the case requires, the close of 30 June 2014".
(5) In clause 13(1)(b), after "commencement", insert "or, as the case requires, that date".
(6) In clause 13(2), after "programme", insert "or, as the case requires, the close of 30 June 2014".
(7) In clause 13(2), after "training assistance", insert "or special assistance".
(8) In clause 13(2), after "clause 6(1)", insert "and subject to the same conditions (if any) to which that assistance was subject before that date (including any condition as to any assistance being recoverable)".
(9) Revoke clause 13(3).
10. New clause 14 inserted-After clause 13, insert:
"14. Direction in relation to sections 61G and 179-
(1) Under section 5 of the Act, the Minister directs that in the exercise of the chief executive's powers under section 61G and 179 of the Act, the chief executive should treat the following as references to payments under this programme for education or employment-related training costs and associated additional costs under clauses 3, 5, and 9 of the Schedule-
(a) the reference to payments under the Training Incentive Allowance Programme in clause 5(b) of Schedule 1 of the Social Security (Temporary Additional Support) Regulations 2005:
(b) the reference to payments under that programme
and the course participation assistance programme in Regulation 9(1)(c) of the Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012.
(2) This direction is for the avoidance of doubt."
11. Direction in relation to Special Benefit consequentially amended-(1) This clause amends the Direction in relation to Special Benefit6 given under section 5 of the Act.
(2) In clause 2.1, definition of chargeable income, paragraph (f)(i), replace "the Training Incentive Allowance Programme" with "the Employment and Work Readiness Assistance Programme for education and employment-related training costs and associated additional costs".
(3) In clause 2.1, definition of chargeable income, paragraph (f)(iii), replace "Work Start Grant Programme" with "Employment and Work Readiness Assistance Programme".
12. Sole Parent Study Assistance Programme consequentially amended-(1) This clause amends the Sole Parent Study Assistance Programme7 established and approved under section 124(1)(d) of the Act (as the DPB Sole Parent Study Assistance Programme).
(2) In clause 6(5),-
(a) before "Training Incentive Allowance Programme", insert "former":
(b) before "Course Participation Assistance Programme", insert "former":
(c) after "Assistance Programme", insert ", the Employment and Work Readiness Assistance Programme".
(3) In clause 7(a), replace "who is entitled to, or is receiving assistance under the Training Incentive Allowance Programme" with "who is receiving assistance for educational or employment-related training costs under the Employment and Work Readiness Assistance Programme".
13. Schedule amended-Amend the Schedule of the principal programme in the manner set out in the Schedule.
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Schedule
Clause 13
Amendments to Schedule of principal programme
Clause 3
Replace clause 3 with:
"3 Education and employment-related training
(a) Short-term training courses
The purchase for an eligible person with specific employment skills deficits of a place in a short-term employment-related training course


The actual and reasonable fees charged by the training provider for the training and (including the amount of any associated grant under clause 5 or 9 of this Schedule) not exceeding $1,000.00 in a 52-week period
(b) Longer education or training courses
The purchase for an eligible person at risk of long-term benefit dependency and who has specific employment skills deficits of a place in an educational course (not being a post-graduate degree course) or a course of employment-related training
A total amount (including the amount of any associated grant under clause 5 or 9 of this Schedule) not exceeding $5,000.00 for each year of the course".
Clause 6
In clause 6, replace "Financial assistance" with "(1) Financial assistance".
In clause 6, replace "from receipt of a main benefit under the Act into unsubsidised" with "into".
In clause 6(a), after "employer", insert "(not being clothing, footwear, or equipment the employer is required to supply to comply with the employer's obligations under the Health and Safety in Employment Act 1992)".
Replace clause 6(b) and (c) with:
"(b) the costs relating to participation in any job interview for the employment; and
(c) except for a full-time student undertaking employment during the period between the end of an academic year and the start of the next academic year and subject to subclause (2), bridging finance for the person's living costs for a period not exceeding 4 weeks between,-
(i) in the case of an eligible person moving from receipt of a main benefit under the Act to employment, the date the benefit ends and the date of the first payment of wages or salary from the employment; or
(ii) in the case of an eligible person moving from one employment (employment A) to another (employment B) and who, in the chief executive's opinion, would be at risk of receiving a main benefit under this Act if assistance under this paragraph were not granted, the date on which employment A ceased and the date of the first payment of wages or salary from employment B; and
(d) the cost of an interpreter; and
(e) the costs of tattoo removal if the applicant is referred to a tattoo removal service by a medical practitioner; and
(f) job placement expenses, being costs that an applicant will need to incur to enter employment (other than training costs) including relocation costs if the applicant needs to relocate his or her place of residence to take up the offer of employment".
After clause 6, insert as subclause (2):
"(2) If the applicant is receiving work bonus payments under the Work Bonus Programme8 established and approved under section 124(1)(d) of the Act in respect of the cancellation or termination of a main benefit under the Act, any grant for bridging finance under subclause (1)(c) is affected as follows:
(a) the grant is not payable if the total amount of the work bonus payments in the first two weeks following the date of the last payment of the main benefit is equal to or more than $500.00:
(b) if paragraph (a) does not apply, each dollar of the amount of the grant payable in respect of a week is reduced by each whole dollar amount of the work bonus payment payable in that week".
In clause 6, second column, replace ", and in the case of assistance of the kind referred to in paragraph (c), not exceeding the weekly rate of the person's former main benefit under the Act" with "but not more than $1,500.00 in a 52-week period".
New clause 6A
After clause 6, insert:
"6A Incentive payments
A payment to an eligible person as an incentive for that person to do one or more of the following activities:
(a) enter or retain employment:
(b) take up an offer of suitable employment:
(c) relocate his or her place of residence to enable the person to take up an offer of suitable employment:
(d) relocate his or her place of residence to a location where there are better employment opportunities:
(e) gain employment skills:
(f) enter into study or employment-related training
A lump sum payment not exceeding $5,000.00".
Clause 8
Below the heading to clause 8, insert:
"(a) Costs preparatory to entering self-employment and to obtain business advice and certain reports".
Above clause 9, insert:
"(b) Business start-up costs
Financial assistance to assist an eligible person who is entering self-employment to meet essential business start-up costs. In this paragraph, business start-up costs-
(i) includes (without limitation) the costs of leasing premises or purchasing or leasing plant or equipment (including legal fees), or obtaining insurance; but
(ii) does not include any cost for an income-related purpose or of a kind described in paragraph (a)

One or more lump sum payments (not exceeding $10,000.00 in total) set by the chief executive having regard to the amount of any financial assistance provided by the department other than under this programme for an income-related purpose of the person".
Clause 9
In the heading to clause 9, after "child care", insert "or care for people with sickness, injury, or disability or elderly people".
In clause 9, replace "childcare and costs associated with childcare", with "childcare or care for a person with a sickness, injury, or disability, or who is elderly, and associated costs".
In clause 9, replace "childcare provider" with "care provider".
Clause 10
In clause 10, after "careers advice", insert "or assistance".
In clause 10, after "choices", insert ", prepare a curriculum vitae, or improve the person's interview skills".
New clause 11A
After clause 11, insert:
"11A Assistance for young people
The purchase for an eligible person who is a young person of youth services or services of the kind referred to in Regulation 5 of the specified regulations
The contract price of the services agreed under section 125A of the Act".
Dated at Wellington this 26th day of June 2014.
HON PAULA BENNETT, Minister for Social Development.
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Explanatory Note
This note is not part of this instrument, but is intended to indicate its general effect.
This instrument, most of which comes into force on 1 July 2014, amends the Employment and Work Readiness Assistance Programme ("the principal programme") as a result of funding for certain programmes of assistance being brought within the coverage of the multi-category appropriation Improved Employment and Social Outcomes Support in Vote: Social Development on that date. It adjusts eligibility criteria and specifications for the kinds of assistance available under the principal programme accordingly, including providing for the revocation of
the following welfare programmes and bringing (with amendment) certain criteria and specifications from them under the discretionary provisions of the principal programme:
- the Course Participation Assistance Programme:
- the Training Incentive Allowance Programme:
- the Transition to Work Grant Programme.
Also revoked are the remainder of the Ministerial Guidelines for Employment and Training Assistance. The revocations are subject to transitional and savings provisions. The Ministerial Direction in relation to sections 124(1)(d) and (1A) 2012 relating to the Transition to Work Grant Programme is consequentially revoked.
This instrument also inserts two new kinds of employment or work readiness assistance in the Schedule of the principal programme, clarifies the chief executive's powers when exercising discretion under the principal programme, inserts additional matters to which the chief executive must (or, in one case, may) have regard when exercising discretion, and makes drafting improvements.
Key to Annotation
1New Zealand Gazette, 13 March 2014, No. 29, page 837
2New Zealand Gazette, 21 December 2006, No. 174, page 5102
3New Zealand Gazette, 10 December 1998, No. 198, page 4695
4New Zealand Gazette, 1 February 2007, No. 10, page 215
5New Zealand Gazette, 13 December 2012, No. 148, page 4411
6New Zealand Gazette, 16 December 1999, No. 193, page 4599
7New Zealand Gazette, 23 December 2010, No. 179, page 4457
8New Zealand Gazette, 4 July 2013, No. 85, page 2298