Tolley Anne: Social Security Amendment Bill Education Amendment Bill Taxation (Support for Children in Hardship) Bill — Third ReadingsText is incorporated into the Bound VolumeTolley Anne: Social Security Amendment Bill Education Amendment Bill Taxation (Support for Children in Hardship) Bill — Third Readings[Sitting date: 03 December 2015. Volume:710;Page:8577. Text is incorporated into the Bound Volume.]Hon ANNE TOLLEY (Minister for Social Development): I move That the Social Security Amendment Bill the Education Amendment Bill and the Taxation (Support for Children in Hardship) Bill be now read a third time. This Government has expressed a strong commitment to assist children living in severe hardship in New Zealand. Supporting our most vulnerable children is critical to ensuring that they can succeed in life. As a Government we have worked to build the right foundations to assist and support our most vulnerable families and their children so that they can thrive. This package will reach more than half a million children in low-income and very low - income families.In laying these foundations we are focused on embedding our social investment approach by making early and better-targeted investment to achieve improved long-term outcomes amongst our most vulnerable people and families. Through Budget 2015 this Government is making an upfront investment of $790 million directly into the lives of children living in severe hardship. This investment builds on the foundations we have put in place and represents a significant step towards assisting some of our most vulnerable families.Collectively these bills aim to provide more financial assistance to reduce pressure on the budgets of low-income families with children while strengthening work expectations for beneficiary parents in order to recognise the benefits of paid employment for these families. We know that participation in sustainable paid employment is a key pathway out of hardship for many families and their children. Paid employment brings a range of long-term social and developmental benefits to both parents and children particularly when they are disadvantaged. These include increased confidence expanded social and support networks increased social mobility and reduced exposure to hardship in the long term.In recognising these benefits the Social Security Amendment Bill will require sole parent beneficiaries and partners of beneficiaries to look for part-time work of 20 hours per week once their youngest dependent child reaches the age of 3. Participation in paid employment will assist these parents to move towards independence so they are in a stronger position to provide the essential items that are critical in supporting their child to grow and thrive. As is current practice parents covered by the strengthened work obligations in this bill will be required to seek and enter only paid employment that is suitable. This approach will ensure that a wide range of factors related to families’ circumstances and ability to move to work will be considered. The returns from moving to paid work will be further strengthened through low-income working parents being able to access increased Working for Families assistance as a result of changes through Budget 2015.The Taxation (Support for Children in Hardship) Bill helps children from low-income working families who are living in hardship by providing for an increase in Working for Families assistance. This change will boost both the in-work tax credit and the minimum family tax credit helping to reduce pressure on the budgets of our lowest-income working families with children. Access to additional Working for Families assistance will provide parents with greater support to move to and remain in paid employment and that will be of direct benefit to both the parents and their children.Lifting the returns from being in work will ensure that parents in these families are in a stronger position to provide the essential items that are fundamental to their child’s well-being. This Government is focused on ensuring that families can become more independent through participation in paid work so they can meet their families’ needs in the long term. The changes for Working for Families through this bill represent an important step towards achieving this.In support of the changes to Working for Families the Government has also taken steps to provide additional childcare assistance to help meet the costs of childcare. From 4 April 2016 the highest rate of childcare assistance will increase to $5 per hour for the lowest-income families. This change will be of real significance in helping to reduce the pressures of childcare costs on the budgets of the lowest-income families. It will also ensure that the developmental benefits of childcare are more accessible to some of our most vulnerable children.Lifting household incomes is an effective way to reduce the hardship of children in the lowest-income families. In recognising these benefits the Social Security Amendment Bill will deliver financial relief to better support some of our lowest-income households with children. From 1 April 2016 rates of main benefits for families with dependent children will increase by $25 per week. The increase to the main benefit provided through the bill represents one of the most significant and historic changes in supporting children in some of our lowest-income beneficiary families. This is the first substantial increase in the main benefit in over four decades. The increase in benefit rates will assist over 100000 of our lowest-income beneficiary families. A similar increase will also be applied to student allowance rates to provide extra financial support to parents while they are in study. This will occur through changes to regulations.Boosting the incomes of these families will make a real and meaningful difference by ensuring that beneficiary and student parents are in a stronger position to better meet their children’s basic needs. As a Government we are committed to ensuring that all New Zealand children are able to thrive and realise their potential so that they can live fulfilling lives. Combined together with changes through the Government’s $790 million package this will ensure that children experiencing that severe hardship are better off both now and in the future. These bills represent a significant and continued commitment by this Government to assist our most vulnerable children living in hardship. I commend these bills to the House.