Tinetti JanSOCIAL SECURITY (SUBSEQUENT CHILD POLICY REMOVAL) AMENDMENT BILLThird ReadingHon JAN TINETTI (Minister of Internal Affairs) on behalf of the Minister for Social Development and Employment: I present a legislative statement on the Social Security (Subsequent Child Policy Removal) Amendment Bill.DEPUTY SPEAKER: That legislative statement is published under the authority of the House and can be found on the Parliament website.Hon JAN TINETTI: I move That the Social Security (Subsequent Child Policy Removal) Amendment Bill be now read a third time.We are pleased to see that the majority of the House here today is committed to supporting parents and their children in the welfare system by removing the subsequent child policy from the Social Security Act 2018 and the Social Security Regulations 2018. I would like to thank the committee of the whole House for considering this bill. This is an important piece of legislation that will reduce inequity in the welfare system and progress our welfare overhaul work programme and I would like to take the opportunity to thank and support and acknowledge the Minister for Social Development and Employment the Hon Carmel Sepuloni for shepherding this bill through and the huge amount of work that she and her officials have done to bring this bill to this stage. I would also like to take this opportunity on her behalf to thank all the members of the Social Services and Community Committee and those who made submissions to the select committee on the bill. I'd also like to acknowledge the Welfare Expert Advisory Group (WEAG) who recommended the removal of the subsequent child policy in their advice to the Government in February 2019. The WEAG's report on how to best give effect to the Government's vision for the future direction of the social welfare system remains an important piece of advice for our welfare overhaul work programme.The Social Security (Subsequent Child Policy Removal) Amendment Bill will remove the subsequent child policy from the Social Security Act 2018 and associated Social Security Regulations on 8 November 2021. This will mean that a child who would have been deemed to be a subsequent child under the current policy will be treated in the same way as a non-subsequent child for the purposes of setting their parents' work or work preparation obligations and determining eligibility for sole parent support. The practical impacts of this change are that parents will have more flexibility to spend time with their children and the welfare system will be simpler and fairer for groups who are disproportionately impacted by the policy such as Māori and women.The bill also sets out transitional provisions related to the removal of the policy which come into force on 11 October 2021. This will improve the client experience for clients with a benefit application or change in circumstances around the time of the policy's removal by preventing multiple changes to their benefit type and work or work preparation obligations within a short period of time.The subsequent child policy was introduced in 2012 by the then National Government and was intended to address the concern that families who have a subsequent child or children while on benefit were at an increased risk of long-term welfare dependence due to detachment from the labour market for long periods of time. Where the subsequent child policy applies the client will have work preparation obligations only until the subsequent child's first birthday after which their obligations will be based on the next-youngest non-subsequent child. This means in some instances parents of subsequent children have full-time work obligations from their youngest child's first birthday. Since amendments to the system of the main benefits in 2013 the subsequent child policy has also impacted eligibility for sole parent support. From a subsequent child's first birthday the client's eligibility for sole parent support is determined based on the client's next-youngest non-subsequent child. Ensuring that work obligations were not reset beyond the subsequent child's first year was intended to afford clients earlier support and assistance to secure paid work and the social financial and developmental advantages this provides to the family. It is important to note however that the policy has not achieved its intended purpose. The Ministry of Social Development's modelling on the cohort affected by the policy has found no strong evidence to suggest that the policy has been effective in reducing time on benefit or improving financial or social outcomes. In fact we know that there are a large number of factors at play as to whether a person is actually able to work or to work all the hours of the work test. This includes for example their support network to help with their caring responsibilities their level of training and experience to enter employment and the availability of suitable work at the time of their access to employment-focused case management.As at 30 April 2021 approximately 11400 clients are impacted by the policy. For those people the subsequent child policy is resulting in inequity between subsequent and non-subsequent children and a lack of flexibility to spend time with children in their early years and is disproportionately impacting on Māori and women. Removing the policy will have a number of positive impacts on whānau and children. We know that parents' fundamental caring responsibilities and the needs of their children remain consistent regardless of whether a child is subsequent or non-subsequent. The policy's removal will increase equity in the welfare system by returning families with the subsequent children to the usual work and work preparation obligations treating them the same as any other whānau.New Zealand's welfare system must adequately support employment and training and also recognise the value of unpaid work such as caring and volunteering. The consideration of an additional child's age when setting work preparation or work obligations will afford parents the flexibility to determine what is best for their family and prioritise either returning to work or caring for their child. We know that the first thousand days of a child's life are critical for their long-term development. Whilst there are benefits to moving into sustainable employment that may make an earlier return to work the best option for some parents with a subsequent child other families may benefit more from the parent being at home with their subsequent child. This Government respects that choice. For parents of subsequent children who do want to return to work earlier they will still have access to employment support and be supported to transition to the workforce.Removing the subsequent child policy will lead to better alignment between work obligations and Government-funded early childhood education which is available for up to 20 hours per week from the time a child turns three. The removal of the subsequent child policy will therefore ensure that childcare support is available to parents when their part-time work obligations commence from their youngest child's third birthday. The setting of work or work preparation obligations that recognise the age of all dependent children in the family is likely to reduce stress for the affected whānau which may also have positive impacts for mental health and wellbeing. This was a strong theme raised by submitters to the select committee and we as a Government are proud that this bill will address their concerns.Clients who become eligible to receive sole parent support may also be able to access additional support not available to recipients of jobseeker support. This includes the work bonus which is a payment that can be made to clients or partners on specific benefits who do not have either part-time or full-time work obligations and who cancel their benefits to move into employment. Clients on sole parent support with work preparation or part-time work obligations may also be able to study full-time through the Training Incentive Allowance which this Government has brought back in.We know that changes in the welfare system are required to ensure it is fair accessible and fit for purpose for all New Zealanders. The Social Security (Subsequent Child Policy Removal) Amendment Bill forms part of our work to review ineffective obligations and sanctions in the welfare system with an initial focus on those that impact children. This bill builds on our progress to date in the welfare overhaul work programme and supports our vision to ensure that people have an adequate income and standard of living are treated with and can live in dignity and are able to participate meaningfully in their communities. This Government will continue to explore how we can best support earning learning caring and volunteering in New Zealand. On behalf of the Minister for Social Development and Employment I commend this bill to the House.DEPUTY SPEAKER: The question is that the motion be agreed to.