Tolley Anne: Support for Children in Hardship Bill — Second ReadingText is incorporated into the Bound VolumeTolley Anne: Support for Children in Hardship Bill — Second Reading[Sitting date: 05 November 2015. Volume:709;Page:7768. Text is incorporated into the Bound Volume.]Hon ANNE TOLLEY (Minister for Social Development): I move That the Support for Children in Hardship Bill be now read a second time. The Support for Children in Hardship Bill enacts this Government’s $790 million package to assist children living in severe hardship and can I thank the Social Services Committee for its work on this bill. The package and the measures set out in the bill represent our strong and ongoing commitment to tackle the material hardship amongst children in low-income families improve the lives of our most vulnerable and get better outcomes for these children.Over the past 6 years we have put in place a number of initiatives to support our most vulnerable children and these include free GP visits and prescriptions for children under 13. We have expanded the Kick Start Breakfast programme to all primary and secondary schools. We have extended Social Workers in Schools to all decile 1 to 3 schools. We have introduced a suite of changes under the Vulnerable Children Act to protect and help vulnerable children to thrive and we have developed the Children’s Action Plan to combat child abuse and neglect including the roll-out of 10 children’s teams working with at-risk children and their families.The measures in this bill build on our progress to date and reinforce the Government’s commitment to support this country’s most vulnerable children so that they have every opportunity to live successful lives. Firstly the bill strengthens work expectations for sole parents and partners of beneficiaries. Once their youngest dependent child turns 3 they will be required to be available for and to seek part-time paid employment of 20 hours per week. Twenty hours of employment a week is enough for sole parents to be independent of benefits. With Working for Families tax credits a sole parent living in Tauranga and working 20 hours a week could be $192 a week better off than they were on a benefit.The bill also increases financial assistance for low-income families in work and those on a benefit. From 1 April 2016 the main benefit rates for families with dependent children will increase by $25 per family per week in addition to any inflation adjustments. The bill also increases Working for Families entitlements to assist children experiencing hardship in low-income working families. These changes will see the in-work tax credit increase from $60 to $72.50 per week with the minimum family tax credit also lifting by $12 per week.Can I again acknowledge the efforts of the Social Services Committee in its consideration of the bill and I commend the committee for its work on this very important piece of legislation. The committee received 31 written submissions and heard 16 oral hearings on the bill from a number of organisations and people working with some of the most vulnerable children in our communities. Overall submitters expressed clear support for the bill’s intent to improve the outcomes of children living in severe hardship and like these submitters we too have a strong desire to do better for these children. During the select committee’s consideration of the bill many submitters commended the Government for taking the steps to increase the main benefit for families with dependent children. The increase was seen as a significant and important change in helping those families meet the basic needs of their children.The bill recognises that hardship is not just an issue for families reliant on the benefit system. It also impacts on low-income working families as well. Over one-third of children in hardship come from these families. The committee heard concerns from some submitters over the level of increase in financial support for beneficiary households with dependent children. This bill will enact the first increase to the benefit rate outside of inflation adjustments in over 40 years and is an approximately 8 percent lift in most sole parents’ base rate of benefit. This is a significant step and it will ensure that these households are in a much better position to provide the basic necessities that are critical to their children’s well-being.Submitters were concerned about the level of the increase in Working for Families assistance including the planned increase in the abatement rate of Working for Families tax credits. The changes to Working for Families are expected to benefit an estimated 203000 working families and 383000 children. The increase to the abatement rate means the package is targeted at children in the lowest-income working families. To further support these households the Budget package provides for an increase in childcare assistance to $5 per hour which will provide important financial relief and reduce the barrier to work that childcare costs can often be.Submissions on the bill raised concerns around the extension of part-time work obligations and in particular how these would be applied to consider the needs of families and their children. For most families the best way out of poverty is for parents to find sustainable full-time work. Many sole parents recognise this and are already choosing to return to work sooner. By the time their youngest child reaches 3 half of all sole parents and two-thirds of all partnered mothers are in paid employment in New Zealand. Over the last 20 years the largest gain in employment for all mothers has been in the group where the youngest child is aged 3 to 4. So the Government’s focus remains firmly on getting beneficiaries into employment because a paid job offers a better future for those who are able to work and much better prospects for their children.There was some suggestion made during the select committee process that steps should be taken to define “suitable employment” in legislation. This is an issue that was well canvassed during this Government’s welfare reforms in 2012. A rigid definition of “suitable employment” simply would not be practical given the dynamic and changing nature of life that families experience. Under the extension of part-time work obligations Work and Income will continue to exercise flexibility around the type of work that is suitable for a parent’s circumstances. Case managers will consider a range of factors such as access to childcare the nature and wages of work location of employment a parent’s skills and experience and family commitments. Continuing with this flexibility will best support families by enabling the Ministry of Social Development to consider their specific circumstances in being able to move to paid employment.In considering the bill the Social Services Committee recommended two minor amendments. The first amendment relates to the definition of “part-time work” under the Social Security Act. The bill intends to increase part-time work obligations for work-ready parents only. It inadvertently also changes part-time work obligations and the capacity for work test for jobseeker support clients with a sickness injury or disability. This was not Cabinet’s intent and the amendment clarifies that. The second minor amendment replaces references to supported living payment or jobseeker support with the term “main benefit” under this bill. This amendment is needed to ensure that the benefit rate increase is correctly applied when a supported living payment or jobseeker support beneficiary is partnered with someone on the emergency benefit. It will ensure that the $25 increase will be evenly split between both parents providing greater clarity on how the benefit increase applies in this situation.It is critical that we support our most vulnerable children so they are able to live rich and fulfilling lives like the majority of other New Zealand children. This Government continues to embark on its ambitious programme to improve the lives of vulnerable New Zealand children. The measures in this bill form an important part of the Government’s ongoing plan to support those children. We are committed to doing better for our children and this bill represents a significant step towards ensuring we deliver on this. I commend the Support for Children in Hardship Bill to the House.