Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill

Committee of the whole House

Thank you, Mr Chair. I would like to start with clause 2 on commencement. Now, I understand clause 2(2) coming into force 1 April, start of the financial year. That makes sense. I am curious as to the date for clause 1, because 2 November, however, is a very odd date to start a particular piece of legislation. So would the Minister for Social Development and Employment please elucidate on why the Act comes into force on 2 November 2026. That’s my first question to the Minister.

Committee of the whole House

It’s a Monday. It wouldn’t make sense for it to be the 1st, because that would be Sunday.

CHAIRPERSON (Maureen Pugh): I’ll carry on with Dr Lawrence Xu-Nan.

Committee of the whole House

I also want to check in terms of—thank you, Minister, by the way. That does make sense. I do want to check with the Minister for Social Development and Employment on the title of this particular bill on whether “(Jobseeker Support and Accommodation Supplement)” actually does reflect what this bill does, because I think, in some ways, it’s not simply the accommodation supplement. The changes that we’re seeing to the jobseeker is not simply to the jobseeker support itself, but in terms of the parental income requirement. So I just wanted to check with the Minister that in that particular title the parental income requirement, which is a substantial part of this bill, has not been added into the title of the bill, which would potentially lead to some confusion, because, for example, it’s not simply granting jobseeker support. We could say, “(Jobseeker Support Alteration and Accommodation Supplement)” or “(Jobseeker Support and Accommodation Supplement Alteration) Amendment Bill”. So I just want to seek the Minister’s clarification that neither of those two things really reflect what we’re seeing here in this bill.

Committee of the whole House

Thank you so much, Madam Chair. On the commencement, just noting that the Act itself comes into force on 2 November 2026, but Part 2 comes into force on 1 April 2027. Would the Minister be able to update us on the operationalisation requirements that mean that she’s choosing to delay the commencement of Part 2 when it comes to the accommodation supplement changes? The reason why I ask this is that it seems like Part 1 in and of itself adds quite a lot of requirements to the Ministry of Social Development (MSD). There’s a parental income test, the parental gap stuff, which I assume requires additional training to give to MSD staff in being able to actually execute this on the ground and to do it accurately. So I’m interested in understanding, so between now and 2 November, what resources have already been allocated or will be allocated to the training of staff to actually be able to familiarise themselves with the parental income test, the parental gap policies, and ensuring that those are implemented accurately?

She just expressed, today, disappointment in her ministry for not processing things in a timely fashion, so clearly there’s a risk that this change could actually have a similar result. So all I am seeking—and this is not about whether we agree or otherwise—is information on what steps is she taking to ensure that before 2 November 2026, MSD front-line staffers will be adequately equipped with the training and the resources to implement the policies. And as a party that cares about fiscal responsibility, what matter of resources have been allocated to equipping MSD staffers to be able to implement this?

Committee of the whole House

As I said in an answer to a question on the previous part, the Ministry of Social Development are well aware of legislative change and this jobseeker support and accommodation supplement amendment bill was first conceived out of Budget 2025, so they have had time and planning and will have time to operationalise and prepare for this coming into effect. the first part of it on 2 November, and the accommodation supplement on 1 April next year.

Committee of the whole House

Thank you, Madam Chair. There’s a difference between they’ve known about this and the level of training they’ve delivered. All I’m asking is for a dollar figure if she knows one of the resources that are going into preparing Ministry of Social Development (MSD) staffers. For example, IT changes often need to happen. So I want to know if any IT changes are needing to happen within the MSD system to allow Part 1 to come into force, and whether those IT changes are ready or whether she’s aware whether those IT changes are going to be ready by 2 November.

Now, on Part 2 about the commencement date, what is the rationale of delaying Part 2 to come into force up until April next year? I haven’t heard any justification for it. I mean, she talked about how great it is that she’s expanding the accommodation supplement to all these other people, but then this is coming about five or six months after Part 1. Is there a reason as to why the accommodation supplement changes need to come almost six months after the changes in Part 1? Is it because of, for example, implementation stuff, IT changes, is there another reason that we haven’t heard from the Minister on?

Lastly, on both of these changes, what resources is she using communications-wise to make sure that people are aware of these changes? So, for example, is it going to come through MyMSD correspondence? Are there going to be workshops for parents that the ministry may have identified who may have adults or people who about to become adults subjected by this policy to explain to them? The reason why I ask this—again, this is not trifling on the issue—is because I think the layperson will struggle to understand what a parental gap actually means in practice, right? It’s quite complex to actually ascertain exactly what a severe family breakdown actually means in practice. If there are no communications to the families affected by this or the 18- and 19-year-olds who will be subjected by this, I would assume most families will just be navigating this in the dark. So, again, simple question: what are the resources, beyond just MSD’s aware, that are being allocated either in communications or in training to ensure that people actually understand what a severe family breakdown is for the purposes of the parental gap test?

Committee of the whole House

Well, the member’s question about why 1 April 2027: there’s a substantial amount of work in the new boundaries. As I said before, members, like the member for Southland, Joseph Mooney, have advocated for a very long time around the accommodation supplement boundaries being reviewed so that there are more eligible people who are available. That comes into effect on 1 April 2027, which is lined up with this entry threshold amendment. As I said, savings from the entry requirement come into effect on the same day that we are extending the accommodation supplement to New Zealanders that previously weren’t eligible for it.

I think there are a large number of New Zealanders who already understand. Our Government’s focus is for 18- and 19-year-olds to be in employment, education, or training. So I don’t think that’ll be difficult for them to understand first and foremost that is the expectation. Yes, there will be a small number that, because of a parental support gap or a parental income test, may need to rely on the State, but first and foremost it’ll be families.

Committee of the whole House

I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 67

New Zealand National 48; ACT New Zealand 11; New Zealand First 8.

Noes 39

New Zealand Labour 26; Green Party of Aotearoa New Zealand 11; Te Pāti Māori 1; Kapa-Kingi.

Motion agreed to.

A party vote was called for on the question, That clause 1 be agreed to.

Ayes 67

New Zealand National 48; ACT New Zealand 11; New Zealand First 8.

Noes 39

New Zealand Labour 26; Green Party of Aotearoa New Zealand 11; Te Pāti Māori 1; Kapa-Kingi.

Clause 1 agreed to.

A party vote was called for on the question, That clause 2 be agreed to.

Ayes 67

New Zealand National 48; ACT New Zealand 11; New Zealand First 8.

Noes 39

New Zealand Labour 26; Green Party of Aotearoa New Zealand 11; Te Pāti Māori 1; Kapa-Kingi.

Clause 2 agreed to.

A party vote was called for on the question, That clause 3 be agreed to

Ayes 67

New Zealand National 48; ACT New Zealand 11; New Zealand First 8.

Noes 39

New Zealand Labour 26; Green Party of Aotearoa New Zealand 11; Te Pāti Māori 1; Kapa-Kingi.

Clause 3 agreed to.

Bill to be reported with amendment.

House resumed.

CHAIRPERSON (Maureen Pugh): Madam Speaker, the committee has considered the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill and reports it with amendment. I move, That the report be adopted.

Motion agreed to.

Report adopted.

DEPUTY SPEAKER: This bill is set down for third reading immediately.

Third Reading