Sepuloni CarmelSOCIAL SECURITY (WINTER ENERGY PAYMENT) AMENDMENT BILLSecond ReadingHon CARMEL SEPULONI (Minister for Social Development): I move That the Social Security (Winter Energy Payment) Amendment Bill be now read a second time.First of all I would like to thank the Social Services and Community Committee for their comprehensive examination of this bill. The process was fast but it ensured that the changes proposed to the winter energy payment legislation accurately addressed the issues identified while making sure people do not miss out on this vital support this year. I'd also like to thank the submitters who took the time to provide their views on this bill.The bill amends the Social Security Act 2018 to align the legislation with the original policy intent. I want to make it very clear that no new policy is being introduced as a result of the proposed amendments. The technical amendments in the bill ensure that the people who were intended to be eligible for a winter energy payment receive these payments lawfully in the future.The winter energy payment provides extra financial assistance in the winter months to everyone who is on a main benefit superannuation or veterans pension. As a form of financial assistance the winter energy payment has the largest eligible population within the benefit system. The payment is in recognition of the increasing cost of living that often leads to those on fixed and low income struggling to heat their homes in the winter. The importance of warm dry healthy homes over winter cannot be overstated. As mentioned before in this House the winter energy payment has had a positive impact on the lives of many New Zealanders. We've received a range of correspondence from individuals expressing their genuine gratitude for the difference this payment will make or has made. One woman wrote Thank you very much for the winter energy payment. My son has autism and lives at home and gets supported living payment. I really appreciate that the Government cares about the least-privileged members of our community. Families affected by autism are often struggling so the extra help is great." The winter energy payment was introduced as part of the Government's Families Package in December 2017. This package has provided additional financial support towards accommodation heating and the costs of raising children from low and middle income families. The amendments will ensure that people in the following two specific scenarios continue to receive the winter energy payment in a lawful way in the future: people receiving Government funding for long-term residential care or residential care services but who are not eligible for residential care subsidy or residential support subsidy and people who are absent from New Zealand for longer than four weeks at any one time during the winter period. Clauses 4 and 5 of the bill ensure people in these specific scenarios are eligible to receive winter energy payments. After their consideration of this bill at the Social Services and Community Committee the committee recommend by majority that the bill be passed with a minor clarification to one of the sections amended by the bill.During the select committee process it was identified that the proposed wording in clause 4 of the bill for the amended section 72(d) needed a bit more refining. This was to ensure that only people who receive residential support subsidy are not eligible for the winter energy payments under that section. The agreed policy intent regarding people receiving residential care support was that people receiving residential support subsidy and residential care subsidy would not be eligible for winter energy payments. The previous wording in this amended section unintentionally captured people who are in residential care due to a long-term chronic health condition and do not contribute to the cost of their care and people who are in residential care due to an intellectual neurological physical psychiatric or sensory disability including without limitation an autistic spectrum disorder or a long-term chronic health condition and redirect their own benefit under a private arrangement with the provider. There was also another issue raised during select committee which was raised earlier in the House by Louise Upston and now's the opportunity for me to provide a more fulsome response to that particular issue. There is a small group of people—around 460 according to the Ministry of Social Development (MSD)—who are in residential care and receive Government funding for this care: for example if they have been the victims of crime and are also receiving a main benefit superannuation or veterans pension. MSD has no information about the funding they receive for their care as MSD is not involved in undertaking financial means assessments for this group as it's not required and it continues to pay these people the full rate of their benefit. In order for MSD to identify the small group and change their payments new systems would be required to share information between the Ministry of Health and MSD. MSD is determined that the most cost-effective lawful and practical option is to continue to pay this group the winter energy payment. The amendments in this bill are technical and are in line with the original policy intent for the winter energy payment. The bill does not introduce any new policy. As I said before the committee recommend by a majority that the necessary amendments are made to ensure these people are not unintentionally captured by clause 4 of the bill. I'd like to thank the committee again for their quick examination of this bill which has ensured that the amendments accurately address the issues identified. This select committee's work has helped ensure we are on track to continue to provide the winter energy payment this year to everyone who is entitled to it. The winter energy payment provides financial assistance to beneficiaries likely to be on the lowest incomes and to older people who are more often susceptible to ill health in winter.We want to ensure that the winter energy payment continues to positively impact the lives of New Zealanders by helping eligible people and families to heat their homes over the winter months. This bill helps to achieve this. I know there has been some criticism of the fact that there was a drafting error and we're back here in the House. It does happen occasionally. It's happened under previous Governments. As the Minister of course I know that that's not ideal and I'm not particularly happy with it but we have captured it in time before the winter energy payment is paid out again in May. As I said it's good that the mistake was discovered and can be corrected within 16 months as opposed to examples where we've had to wait 17 years before a mistake was discovered and corrected. I commend this bill to the House."