Social Assistance (Living Alone Payments) Amendment Bill

I move, That the Social Assistance (Living Alone Payments) Amendment Bill be now read a first time. At the appropriate time I will be moving that the bill be referred to the Social Services Committee, that the committee report back to the House on or before 28 February 2011, and that the committee have the authority to meet at any time that the House is sitting except during oral questions, during any evening on a day in which there has been a sitting of the House, and on the Friday in a week where there has been a sitting of the House, despite Standing Orders 187 and 190(1)(b) and (c).

This bill has two main purposes. The first is to make amendments to the New Zealand Superannuation and Retirement Income Act 2001 and the War Pensions Act 1954, so that single superannuitants and single veterans pensioners who are living alone do not have make a separate application to receive their full entitlement. The living alone payment is a separate, supplementary benefit that recognises that single superannuitants and veterans pensioners who live alone face higher living costs, as they are unable to share the expenses of maintaining a household. A single superannuitant who has been granted a living alone payment receives $25.56 more per week after tax than a single superannuitant who is sharing accommodation.

Because the living alone payment is a separate benefit, superannuitants and veterans pensioners who have become single, usually after the death of a partner or a spouse, are required to make a specific application to receive it. In addition, they need to apply for a living alone payment within a given time period—within 28 days—in order to get it backdated. These requirements can be a real burden on older New Zealanders, particularly if they have just lost a partner. Also, because many are not aware of the payment, they do not apply for it, so they miss out on their full entitlements, which can create unnecessary hardship.

It is important that we amend this legislation so that older New Zealanders who suddenly find themselves alone do not struggle to pay their bills, when they are entitled to that help. The Government is addressing the situation by replacing the living alone payment and the two current rates of New Zealand superannuation and veterans pension with a new single living alone rate and a new single sharing accommodation rate. The two rates will not change the total payment received by single superannuitants and veterans pensioners who are living alone. On top of that change, superannuitants will no longer need to visit a Work and Income office to make an additional application for a payment that they are automatically entitled to. That is onerous for older New Zealanders and could mean some do not apply for their entitlement.

The new single living alone rate will be paid from the day that the superannuitant or veterans pensioner becomes eligible for it. At the date of the enactment, all recipients of the living alone payment will be transferred to the new single living alone rate of New Zealand superannuation or veterans pension. It is important to note that this legislative change will not be retrospective.

The second main purpose of this bill is to amend the New Zealand Superannuation and Retirement Income Act 2001 and the War Pensions Act 1954 to update the definition of “dependent child”. The definition is to be aligned with the provisions of the Social Security Act 1964 and the Income Tax Act 2007. Currently the definition is inconsistent between the Acts. This amendment means single superannuitants and veterans pensioners with dependent children will receive the new single living alone rate until the end of the calendar year in which the child turns 18, and as long as the child is at school or in training. Beyond that, if the child remains in the household, the superannuitant will receive the new single sharing accommodation rate. This amendment will ensure a consistent definition of an 18-year-old dependent child across the social assistance system.

The bill also contains a minor amendment of a technical nature, replacing the term “licensed boarding house” with the term “boarding house” so that it is consistent with a recent amendment to section 66B of the Residential Tenancies Act 1986.

As required by section 73 of the New Zealand Superannuation and Retirement Income Act 2001, the Minister of Finance has tabled a statement to the House on the consultation undertaken with other parties in developing these amendments. I am pleased to note that the Green Party, the Progressive Party, and United Future New Zealand have all indicated that they will support the amendments.

The amendments contained in the bill address two issues with regard to the current living alone payment. I am confident these changes will ensure a fairer and more equitable experience for single superannuitants and single veterans pensioners who live alone. They may seem to be minor changes, but I think they will be significant for the people who use them, and we need to simplify the system. This National Government is adamant that this group of New Zealanders should not face any unnecessary difficulty in obtaining what they are rightfully entitled to. I commend this bill to the House.

It is a privilege to stand to speak on the Social Assistance (Living Alone Payments) Amendment Bill. It will come as a nice surprise to anyone who is watching tonight that occasionally we can agree on something. Labour supports this bill, as we agree that it improves the lives of older New Zealanders by reducing the requirement to make an additional application to receive their full entitlement. We agree with the mainly technical changes that it proposes. This bill ensures that single superannuitants and veterans pensioners who are living alone do not have to make a separate application to receive their full entitlement. The provision of the living alone payment as a supplementary benefit was introduced on 26 September 1990. The Government has taken a position, in introducing these changes, to reduce the burden of compliance on single superannuitants to receive the full entitlement, thereby improving the lives of older New Zealanders, and we agree with it.

The bill amends the New Zealand Superannuation and Retirement Income Act 2001 and the War Pensions Act 1954. It replaces the living alone payment and the current rates of New Zealand superannuation and veterans pension for single superannuitants with the new single living alone rate and a new single sharing accommodation rate.

Debate interrupted.

The House adjourned at 10 p.m.