Benefits and super rise, work-for-dole abolished
1 April 2001 Media Statement
Benefits and super rise, work-for-the-dole abolished
Increased payments for beneficiaries, student allowance recipients, superannuiants and veterans and the abolition of the work-for-the dole scheme take effect from today.
All benefits and superannuation receive a 3.98 percent inflation adjustment. The increases mean a substantial injection of money into local economies. Broken down by region, the Department of Work and Income (DWI) expects benefit increases to pump an additional $12m into Northland; $97m into Auckland; $26m into the Waikato; $31m into the Bay of Plenty, $20m into the East Coast and Hawkes Bay; $20m into Taranaki; $25m into the Manawatu, Horowhenua and Wairarapa; $26m into Wellington; $16m into Marlborough, Nelson and the West Coast; $40m into Canterbury; and $31m into Otago and Southland over a twelve month period.
Mr Maharey said the Government also implemented a campaign promise today to abolish the failed work-for-the-dole scheme. DWI was now gearing itself up for changes which take effect on 1 July and shift the emphasis away from make-work schemes to moving beneficiaries off welfare into real jobs paying real wages.
"The increases which take effect from today will assist beneficiaries and superannuiants with recent cost of living increases. The increases will also boost regional economies because the additional money will be spent locally.
"Examples of the increases in the after-tax
weekly rates are:
- for an unemployed person receiving
the community wage, or a full time student living away from
home aged over 25, up $5.92 to $154.56;
- for a married
couple on the community wage with no children, up $9.86 to
$257.58;
- for a single person aged 18-19 years on the
community wage living at home, up $3.94 to $103.03;
- for
a single person over 18 receiving the invalid’s benefit, up
$7.39 to $193.18;
- for a sole parent with one child, up
$8.47 to $221.37;
- for a married couple who both qualify
for New Zealand Superannuation, up $13.82 to $360.82;
and,
- for a war disablement pensioner receiving 100%
disability rate, up $5.85 to $152.75.
"Today also sees the formal abolition of the work-for-the-dole scheme. Official advice received by the Government proved the scheme was a total failure in moving job seekers off welfare and into real work.
"DWI case managers have now been freed up to focus on getting beneficiaries into real jobs, paying real wages. This is a hard-headed change – if beneficiaries repeatedly fail to meet their obligations to actively seek work they can expect to have their benefit suspended until those obligations are met.
"Starting from 1 July DWI is introducing personalised Job Seeker Agreements which detail how DWI will assist each unemployment beneficiary back into the workforce. The Agreements will include training opportunities, work experience and other support which the Department agrees to provide and the obligations on the job seeker to take up those opportunities," Steve Maharey said.
ENDS
Benefit Rates on or after 1 April 2001
Table 1: NZ Superannuation/Veteran’s
Pension
Weekly Rates on and from 1 April
2001
Pension Type Net Rate
(Tax at M) Net
Rate
(Tax at M/S) Gross
Rate
NZ
Superannuation/Veteran’s Pension
(Standard
Rates)
Single Living Alone
$234.53 $223.56 $282.78
Single Sharing
$216.49 $205.52 $260.12
Married
Person $180.41 $169.44 $214.38
Married Couple (both
qualify)
[total] $360.82 $338.88 $428.76
Married Couple (NQS
included)
[total] $344.02 $322.08 $407.34
Married Person (NQS)
[each partner] $172.01 $161.04 $203.67
NZ
Superannuation/Veteran’s Pension
(Non Standard
Rates)
Married Couple (NQS included pre 1/10/91)
[total] $360.82 $338.88 $428.76
Each
partner] $180.41 $169.44 $214.38
Partner in Rest Home
[NQS*] $193.18 $182.21 $230.51
Hospital Rate
$28.30 $26.32 $33.25
Table 2 BENEFITS FROM 1 APRIL
2001
April 2000 rates April 2001 rates
Old Net
Weekly CPI New Net Weekly Gross
Income
Benefit Benefit Benefit Weekly
Community Wage
granted from 1 July 1998
Single 18-19 years
- at home* 99.09 3.98 103.03 121.21
- away from
home 123.86 128.79 151.52
Single 20-24 years (and half
married rate of CW) 123.86 128.79 151.52
Single 25 years
and over 148.64 154.56 181.84
Married Person (no
children) each
partner 123.86 128.79
151.52
Married Couple (no
children) 247.72
257.58 303.04
Single (1
Child) 212.90 221.37 266.34
Single (2+
Children) 232.27 241.51 291.83
Married Couple
(Children); each
partner 131.62 136.86
161.01
Married Couple
(Children) 263.24 273.72 322.02
Independent
Youth
Single or married
person 123.86 128.79 151.52
Community Wage (Sickness,
Injury, Disability)
Granted before
1.7.98**
Single 18-24
years 147.34 147.34 173.34
Single 25 years and
over 153.47 154.56 181.84
Married Person (no children)
each partner
139.54
139.54
164.16
Married
Couple (no children) 279.08 279.08 328.32
Single (1
child) 212.90 221.37 266.34
Single (2+
children) 232.27 241.51 291.83
Married Couple
(children); each
partner
139.54
139.54
164.16
Married Couple
(children) 279.08 279.08 328.32
*The at home allowance is
80% of the away from home allowance.
**These are the old
Sickness Benefit rates. They are frozen until the relevant
Community Wage “catches up”. This year the Single over 25
rate is replaced by the relevant CW rate.
Table 2
(Cont’d) BENEFITS FROM 1 APRIL 2001
April 2000 rates
April 2001 rates
Old Net Weekly
CPI New
Net Weekly Gross Income
Invalids Benefit
Single
16-17 years 150.35 3.98 156.33 184.01
Single 18 years and
over 185.79 193.18 230.66
Married Person (no children)
each partner
154.83
160.99
189.91
Married
Couple 309.66 321.98 379.82
Single (1
Child) 244.07 253.78 307.37
Single (2+
Children) 262.09 272.52 331.09
Married Couple (Children)
each partner
154.83
160.99
189.91
Married
Couple (Children) 309.66 321.98 379.82
Widows and
Domestic Purposes
Woman Alone (Single
Adult) 154.83 160.99 189.91
Single (1
Child) 212.90 221.37 266.34
Single (2+
Children) 232.27 241.51 291.83
Domiciliary Care Domestic
Purposes
Single (16-17
years) 150.35 156.33 184.01
Single (18 years and
over) 185.79 193.18 230.66
Single (1
Child) 244.07 253.78 307.37
Single (2+
Children) 262.09 272.52 331.09
Half Married Rate
154.83 160.99 189.91
Transitional Retirement
Single 185.79 193.18 230.66
Married
Couple 309.66 321.98 379.82
Single (1
Child) 244.07 253.78 307.37
Single (2+
Children) 262.09 272.52 331.09
Married Couple
(Children) 309.66 321.98 379.82
Orphans and Unsupported
Childs Benefit
Under 5 years 72.23 75.10 N/a
5-9
years 87.72 91.21 N/a
10-13 years 95.46 99.26 N/a
14
years and over 103.20 107.31 N/a
Table 3(a): STUDENT
ALLOWANCE RATES FROM 1 APRIL 2001
Student
Allowances Weekly Rates Old Net Weekly CPI New Net Weekly
New Gross Income ($)
Benefit ($) Benefit
($) Weekly Annually (1)
Single Students
18-24
year old targeted allowance at home (up to)
99.09 3.98 103.03 121.21 6302.92
18-24 year old targeted
allowance away from home (up
to) 123.86 128.79 151.52 7879.04
Independent
Circumstances Allowance 123.86 128.79 151.52 7879.04
25
year old and over at
home 118.91 123.64 145.46 7563.92
25 year old and over
away from home 148.64 154.56 181.84 9455.68
Student with
Earning Spouse
Student with earning spouse at
home 53.69 55.83 65.68 3415.36
Student with earning
spouse away from home 80.00 83.18 97.86 5088.72
Couple
Allowance
One student, one dependent
spouse 247.72 257.58 312.18 16233.36
Both eligible
students (each) 123.86 128.79 151.52 7879.04
Both
students, one eligible 148.64 154.56 181.84 9455.68
With
Dependents
Single Student (one
child) 212.90 221.37 266.34 13849.68
Single student
(more than one child) 232.27 241.51 291.83 15175.16
Both
students, one eligible (one
child) 212.90 221.37 266.34 13849.68
Both students, one
eligible (more than one
child) 232.27 241.51 291.83 15175.16
Both students, both
eligible (one + children)
(each) 131.62 136.86 161.01 8372.52
One student, one
dependent spouse (one +
children) 263.24 273.72 332.61 17295.72
Other
Allowances
Accommodation Benefit (varies from region
to region) Up to 40
16-19 year old A bursary 200 per
year
16-19 year old B bursary 100 per year
Table 4 (a) Rates of Supplementary Assistance
from
1 April 2001 – Non taxable weekly
rates
Type of Supplementary
Assistance
Old New
Child Disability
Allowance (formerly Handicapped Child
Allowance) 32.87 34.18
Training Incentive Allowance
Maximum Rate
Weekly maximum
rate 75.38 78.38
Annual maximum
rate 3015.20 3135.20
Disability
Allowance
Standard Disability Allowance
(Maximum) 43.61 45.35
Special Disability
Allowance 27.22 28.30
Foster Care Board
Payments
Child 0-4
years 86.53 89.97
Child 5-9
years 104.00 108.14
Child 10-13
years 117.08 121.74
Child 14 years and
over 130.08 135.26
Family
Home 119.78 124.55
Childcare
Assistance
Childcare Subsidy maximum
weekly 70.20
(30 hrs) 89.91
(37 hrs)
OSCAR
Subsidy maximum weekly
36.20
(20
hrs)
37.60
(20 hrs)
– Term Time
-
School Holidays 54.30
(30 hrs) 69.56
(37
hrs)
Hourly Rate Applicable
Rate 1 Rate
2 Rate 3
Childcare subsidy (under 5 yrs, Child
Disability Allowance under 6
yrs)
$2.43
$1.69
$0.93
OSCAR (5-13 yr olds,
incl. school
holiday) $1.88 $1.31 $0.73
Table 4(b): Other Taxable Weekly Rates From
1 April 2001
Type of Assistance Net
Rate
($) Gross Rate
($) ($)
Old New Old New
Housekeeper's
Allowance (Maximum) 123.86 128.79 145.72 151.52
Personal
Allowances
Older People Receiving
RCS
(Equivalent to Hospital
Rate) 27.22 28.30 32.02 33.29
People with Psychiatric or
Intellectual Disabilities (22.5% of net adult
IB)
41.80
43.47
49.18
54.14
People
with Physical or Sensory
Disabilities
70.83
73.65
83.33
86.65
(Hospital
Rate + DA)
Hospital
Rate 27.22 28.30 32.02 33.29
Emergency Community Wage
(SID) and Emergency Maintenance Allowance
(16-17 year old
"At Home"
rate).
99.09
103.03
116.58
121.21
Table
4(c) Non-Taxable Annual Rates from
1 April
2001
Type of Assistance Amount
$ Amount
$
Old New
Clothing Allowance
(Annual) 192.77 200.44
Funeral Grants
(Maximum) 1,136.77 1,182.01
Payment on Death of a
Veteran's Spouse
World War One
Veteran 10,382.39 10,795.61
Other
Veterans 4,117.68 4,281.56
Veteran's
Spouse 3,139.84 3,264.81
Blind Subsidy (Maximum
Allowable Gross Annual Earnings)
Married (old
$264.83 pw, new $270.99pw) 13,771.16 14,091.48
Single
Supplement (old: $30.96pw, new: $32.19pw)
1,609.92 1,673.88
Table 5 (a) Accommodation
Supplement Entry Thresholds
1 April
2001
With First Old Entry Thresholds*
New Entry Thresholds
Benefit Child Family 25%
rent/ 30% 25%
rent/ 30%
Benefit Rate Support board mortgage board Mortgage
Community
Wage
Granted from 1.7.98
Without
Children
Single 18-19 years
-
at home granted from 1.7.98 $103.03 $37 $45 $39 $46
- away from home $128.79 $37 $45 $39 $46
Single 20-24 years $128.79 $37 $45 $39 $46
Single 25 years and over $154.56 $37 $45 $39 $46
Married Couple $257.58 $62 $74 $64 $77
Community Wage
Granted from
1.7.98
With Children
Single (1
child) $221.37 $268.37 $65 $78 $67 $81
Single (2+
children) $241.51 $288.51 $70 $84 $72 $87
Married
(children) $273.72 $320.72 $78 $93 $80 $96
Independent Youth
Single or
married person $128.79 $37 $45 $39 $46
Community Wage (Sickness, Injury,
Disability)
Granted before 1.7.98
No
children
Single 18-24 years $147.34 $38 $46 $39
$46
Single 25 years and over $154.56 $38 $46 $39
$46
Married Couple $279.08 $70 $84 $70 $84
Community Wage (Sickness, Injury,
Disability)
Granted before 1.7.98
With
Children
Single (1 child) $221.37 $268.37 $65
$78 $67 $81
Single (2+ children) $241.51 $288.51
$70 $84 $72 $87
Married (1 child) $279.08 $326.08
$82 $98 $82 $98
Married (2+ children) $279.08
$326.08 $82 $98 $82 $98
*For renters and boarders
25%, for mortgage-payers 30%, of the appropriate net benefit
rates (plus first child under 16 Family Support, of $47).
Thresholds are rounded to nearest dollar
Table 5 (a)
(Cont’d) Accommodation Supplement Entry Thresholds
1
April 2001
With First Old Entry
Thresholds New Entry Thresholds
Benefit Child
Family 25% rent/ 30% 25%
rent/ 30%
Benefit Rate Support Board mortgage Board Mortgage
Widows
Without Children $160.99 $39 $46 $40 $48
Widows
With Children
Single
(1 child) $221.37 $268.37 $65 $78 $67 $81
Single
(2+ children) $241.51 $288.51 $70 $84 $72 $87
Domestic Purposes
Woman Alone $160.99
$39 $46 $40 $48
Single (1 child) $221.37 $268.37
$65 $78 $67 $81
Single (2+ children) $241.51
$288.51 $70 $84 $72 $87
Domiciliary Care
DPB
Single 16-17 years $156.33 $46 $56 $48 $58
Single 18 years and over $193.18 $46 $56 $48 $58
Single (1 child) $253.78 $300.78 $73 $87 $75 $90
Single (2+ children) $272.52 $319.52 $77 $93 $80
$96
Invalids and Transitional Retirement
Benefits, Non-Beneficiaries
Without
Children
Single 16-17 years $156.33 $46 $56 $48
$58
Single 18 years and over $193.18 $46 $56 $48
$58
Married Couple $321.98 $77 $93 $80 $97
Invalids and Transitional Retirement Benefits,
Non-Beneficiaries
With Children
Single (1
child) $253.78 $300.78 $73 $87 $75 $90
Single (2+
children) $272.52 $319.52 $77 $93 $80 $96
Married
(1 child) $321.98 $368.98 $89 $107 $92 $111
Married
(2+ children) $321.98 $368.98 $89 $107 $92 $111
NZ Super/Veterans
Without
Children
Single Living Alone $234.53 $56 $68
$59 $70
Single Sharing $216.49 $52 $62 $54 $65
Married Couple (both qualify) $360.82 $87 $104 $90
$108
Married Couple NQS included $344.02 $83 $99
$86 $103
Table 5 (a) (Cont’d) Accommodation
Supplement Entry Thresholds 1 April
2001
With First Old Entry Thresholds
New Entry Thresholds
Benefit Child Family 25%
rent/ 30% 25%
rent/ 30%
Benefit Rate Support Board mortgage Board mortgage
NZ
Super/Veterans
With Children
Single/LA (1
child) $234.53 $281.53 $68 $82 $70 $84
Single/LA
(2+ children) $234.53 $281.53 $68 $82 $70 $84
Single/S (1 child) $216.49 $263.49 $64 $77 $66 $79
Single/S (2+ children) $216.49 $263.49 $64 $77 $66
$79
Married (1 child) $360.82 $407.82 $99 $118 $102
$122
Married (2+ children) $360.82 $407.82 $99 $118
$102 $122
Married NQS included (1 child) $344.02
$391.02 $94 $113 $98 $117
Married NQS included (2+
children) $344.02 $391.02 $94 $113 $98 $117
Table 5 (b) Accommodation Supplement Entry Thresholds
Couples on Half Married Rates
of Different Benefits From 1 April 2001
Old
EntryThresholds New Entry Thresholds
Without
children With children Without children With
children
Benefit
Type 25% 30% 25% 30% 25% 30% 25% 30%
NZS/VP and
CW(SID)(pre 1.7.98) $78 $94 $90 $108
$80 $96 $92 $110
NZS/VP and IB/Non-Ben $82 $98 $94
$113 $85 $102 $97 $117
NZS/VP and CW $74 $89 $86
$103 $77 $93 $89 $107
CW and CW(SID) (pre 1.7.87 $66
$79 $78 $93 $67 $80 $79 $95
CW(SID) (pre 1.7.98) and
IB(Non/Ben) $74 $88 $85 $102 $75 $90 $87 $104
DCDPB
and CW (from 1.7.98) $70 $84 $81 $98
$72 $87 $84 $101
DCDPB and CW(SID) pre 1.7.98 $74 $88
$85 $102 $75 $90 $87 $104
DCDPB and NZS/VP $82 $98
$94 $113 $85 $102 $97 $117
DCDPB & IB/Non-Ben $77
$93 $89 $107 $80 $97 $92 $111
Table 5 (c)
Accommodation Supplement Entry Thresholds as at 1 April
2001
Spouse at Home Whose Partner is in Subsidised
Long
Term Residential Care
With
First Old EntryThresholds New Entry thresholds
Benefit
type Rate Child
FS Renters Mortgagors Renters Mortgagors
NZS/VP
Sharing
(without children) $216.49 $52 $62 $54 $65
Sharing (1 child) $216.49 $ 263.49 $64 $77 $66
$79
Sharing (2+ children) $216.49 $ 263.49 $64 $77
$66 $79
Living alone (without children) $234.53
$56 $68 $59 $70
Living alone (1 child) $234.53
$ 281.53 $68 $82 $70 $84
Living alone (2+
children) $234.53 $ 281.53 $68 $82 $70 $84
Invalids
without children
$193.18 $46 $56 $48 $58
with 1 child $253.78 $
300.78 $73 $87 $75 $90
with 2+ children $272.52
$ 319.52 $77 $93 $80 $96
Community Wage
(SID pre 1.7.98)
without children $154.56 $38
$46 $39 $46
with 1 child $221.37 $268.37 $65
$78 $67 $81
with 2+ children $241.51 $288.51
$70 $83 $72 $87
Community Wage from
1.7.98
without children $154.56 $37 $ 45 $39
$46
with 1 child $221.37 $268.37 $65 $78 $67
$81
with 2+ children $241.51 $288.51 $70 $84 $72
$87
Table 5 (d) Special Transfer
Allowance - Average Regional Rental from 1 April
2001
Area Accommodation Type Average Regional
Rent
Auckland Single (no children)
Other Family
Types $139
$189
Wellington Single (no
children)
Other Family Types $118
$152
Rest of New
Zealand Single (no children)
Other Family
Types $88
$127
Table 6: Special Benefit Assessment - Weekly Standard Costs From 1 April 2001
(a) NZ Superannuation/Veterans Pension
Family Type Old Standard
Cost New Standard Cost
Without Children
Single
Living Alone $120.28 $125.07
Single Sharing $120.28
$125.07
Married Couple
$219.44 $228.17
With Children
Single Living Alone
(1 child) $156.36 $162.58
Single Living Alone (2 or
more children) $172.19 $179.04
Single Sharing
(1 child) $156.36 $162.58
Single Sharing (2 or
more children) $172.19 $179.04
Married Couple
(with child/ren)
$211.58 $220.00
Table 6(b) Weekly Standard Costs for
Married Couples Being Paid at the Half Married Rate of
Different Benefits from 1 April
2001.
Combination
Old
Combined
Standard Cost
New Combined
Standard
Cost
NZS+CW(SID) pre 1.7.98 $172.71 $179.58
NZS+CW $139.92 $145.49
NZS+IB/TRB $201.85 $209.88
CW(SID) pre 1.7.98 + CW $160.83 $167.23
IB/TRB+CW(pre 1.7.98) $189.95 $197.51
DPB (carers)
+ CW $157.17 $163.43
DPB (carers) + CW (pre
1.7.98) $189.95 $197.51
DPB (carers) + IB/TRB $219.10
$227.82
Table 6 (c) Special Benefit, Standard
Costs, Income-tested Benefits
Benefit Type Old Standard
Cost New Standard Cost
Community Wage granted on or after
1.7.98 $ $
Single 18-19 years
- at home (granted from 1.7.98) $63.52 $66.05
- away from home $63.52 $66.05
Single 20-24 years (no
children) $63.52 $66.05
Single 25 years and over (no
children) $88.53 $92.05
Married Couple (no children)
$166.10 $172.71
Single (1 child) $129.03 $134.17
Single (2 or more children) $146.17 $151.99
Married
Couple (with child/ren)
$171.54 $178.37
Independent Youth Benefit
Single
or married person $63.52 $66.05
Emergency Benefit (16-17
yrs at home) $63.52 $66.05
Community Wage (Sickness,
Injury, Disability) granted before 1.7.98
Single 18-24
years (no children) $86.66 $86.66
Single 25 years and
over (no children) $92.78 $92.05*
Married Couple (no
children)
$192.63 $192.63
Single (1 child) $129.03 $134.17
Single (2 or more children) $146.17 $151.99
Married
Couple (with child/ren) $185.97 $185.97
Invalids and
Transitional Retirement Benefits
Single 16-17 years (no
children) $84.64 $88.01
Single 18 years and over (no
children) $120.10 $124.88
Married Couple (no
children) $219.10 $227.82
Single (1 child) $155.73
$161.93
Single (2 or more children) $171.50 $178.33
Married Couple (with child/ren)
$211.25 $219.66
Widows and Domestic Purposes
Benefits
Woman Alone Single Adult $93.59 $97.31
Single (1 child) $129.03 $134.17
Single (2 or more
children) $146.17 $151.99
Domiciliary Care Domestic
Purposes Benefit
Single 16-17 years (no children)
$84.64 $88.01
Single 18 years and over (no
children) $120.10 $124.88
Single (1 child) $155.73
$161.93
Single (2 or more children) $171.50 $178.33
Married Person $93.59 $97.31
* Grandparented granted before 1.7.98 caught up and replaced by CW granted after 1.7.98 and Standard Cost adjusted accordingly.