Tolley Anne: Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill — Second ReadingText is incorporated into the Bound VolumeTolley Anne: Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill — Second Reading[Sitting date: 01 June 2016. Volume:714;Page:11574. Text is incorporated into the Bound Volume.]Hon ANNE TOLLEY (Minister for Social Development): I move That the Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill be now read a second time. We made a commitment in our 2014 election manifesto to extend the Youth Service to a broader group of young beneficiaries. This bill fulfils that commitment. We want more young people to access the Youth Service because it makes a meaningful difference in young New Zealanders’ lives. It also aligns with the Government’s social investment approach which is focused on making upfront investment in vulnerable New Zealanders to help them lead successful and fulfilling lives. The Youth Service provides young people with the support they need to build life skills engage in educational training and prepare for employment. Evidence shows that young people under 20 are likely to remain on benefit long term if they do not receive the support they need at this early age.The bill requires all 19-year-old parents to access the Youth Service including having a supportive relationship with a youth coach parenting and budgeting courses and support to engage in educational training. Making sure that these young parents have access to the support they need throughout their teen years will support positive outcomes for both them and their children. It also makes sense as many will have been engaged in the Youth Service when aged 18 or younger so it allows continuation of support.The bill also enables 18 and 19-year-old beneficiaries who are also at risk of long-term welfare dependency to be referred to the Youth Service. This is a diverse group with varying needs. Therefore only those who are at significant risk and most in need of support will be targeted. This target group will be identified through risk modelling undertaken by the Ministry of Social Development. Those referred will remain on their existing benefit and their youth coach will provide them with case management to meet their work obligations. But like other young people in the Youth Service they will also receive help with working towards life goals budgeting and money management.The bill also includes two changes that improve the existing Youth Service. For young people who finish their studies in December the bill extends the exit date from the Youth Service from 31 December to 31 March. This recognises that young people often need continued support over the summer period when schools and universities are on a summer break and it can be a difficult time to find work. The bill also allows young partners of specified beneficiaries who are engaged in the Youth Service to receive incentive payments.The bill clarifies three matters in the Social Security Act. Firstly people will only have review and appeal rights in relation to decisions about their own financial assistance not somebody else’s. The second amendment allows the Ministry of Social Development to continue the practice of paying terminal benefit into a deceased person’s bank account unless their partner or their child’s carer applies to receive it. Finally the bill clarifies that the ministry can pay the remaining credit held on a young person’s payment card to them directly when they are no longer money-managed.I would like to commend the Social Services Committee for its efforts in considering this bill. The committee considered views from 10 written submissions and heard three oral hearings on the bill. Overall submitters supported the bill’s intent to provide more assistance to young people and acknowledged the wraparound support that the Youth Service provides. Concerns raised by submitters related to provisions around money management and risk modelling being extended to an older group of teenagers. Money management is a key part of the Youth Service and helps young people to gain financial skills and learn to make good choices with their money. They can move off money management as soon as they have demonstrated those good financial skills.Submitters also sought more clarity around the risk model used to refer at-risk 18 and 19-year-old beneficiaries to the Youth Service particularly the lack of consultation with young people and what risk factors would be used in the model. The risk model is important to make sure young people receive the right service support and amendments have been made to the bill in response to the Social Services Committee’s recommendations—firstly a requirement to consult those at-risk 18 and 19-year-old beneficiaries on their referral to the Youth Service. We have added that in and that means that once they have been identified as at risk providers will consult with the young people and give them an opportunity to comment and to provide any extra information about themselves. This conversation will then help their youth coach understand the wider circumstances of the young person’s life which might suggest a different level of support. The Ministry of Social Development can consider recommendations from providers that a young person does not need the Youth Service and their referral to the Youth Service can be withdrawn if appropriate. The amendment makes this consultation with young people a clear requirement in the legislation.Another improvement to the bill that responds to submitters’ concerns relates to factors considered in the risk model which are currently not transparent in the legislation. The risk model will likely consider factors such as young people’s education levels whether they have had contact with Child Youth and Family or the justice system and their reasons for leaving school. It is in everyone’s interest to know what information is being considered in risk modelling to determine who receives service support but it is also important to have flexibility to adjust the factors used to assess the risk to ensure that the model remains up to date and fit for purpose as new data-streams or risk-modelling techniques become available. The bill has been amended so risk factors that may be used in the model will be set by ministerial direction. This provides a balance between the desire for transparency and the desire for flexibility.Six minor technical amendments have been made to the bill that correct minor drafting omissions and support alignment of the bill with policy intent and practice. Two amendments have been made to ensure young partners or spouses of specified beneficiaries in the Youth Service are treated the same as their peers—firstly that money management be extended to young partners and secondly that the date that young partners exit the Youth Service should match that of other Youth Service clients. An amendment clarifies that the Youth Service is able to work with young people who are in but are at risk of leaving education training and employment. The definition of a specified beneficiary has been amended so that youth activity obligations would not be extended to a young spouse or partner of a young beneficiary who is caring for a patient. This is appropriate because no additional amount is paid for that spouse or partner.For ease of operation and to avoid confusion for clients when they apply for a benefit an amendment has been made so that 19-year-old parents who apply for a benefit after the bill comes into force will receive a young parent payment. Those who apply before the bill comes into force will receive a different benefit. Lastly an amendment is made to maintain the existing agreement between the Ministry of Social Development and the Ministry of Education which enables information sharing through an amendment to the Privacy Act.This Government is committed to supporting young New Zealanders who need more support to meet their education and employment goals in their transition to adulthood. Extending the Youth Service is an opportunity to assist more young beneficiaries to get on to a better life pathway and to reduce the future liability to New Zealand taxpayers. I commend the Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill to the House.