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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.

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