Davis KelvinSOCIAL SECURITY (SUBSEQUENT CHILD POLICY REMOVAL) AMENDMENT BILLSecond ReadingHon KELVIN DAVIS (Minister for Children) 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 statement is published under the authority of the House and can be found on the Parliament website.Hon KELVIN DAVIS: I move That the Social Security (Subsequent Child Policy Removal) Amendment Bill be now read a second time. First of all I'd like to acknowledge Minister Carmel Sepuloni who because of alert level 4 couldn't be here to read this herself. The Government has committed to overhauling the welfare system following years of neglect by the previous National Government. Our vision for the welfare system is that it ensures 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.In November 2019 Cabinet endorsed the long-term welfare overhaul work programme to build towards that vision. As part of the welfare overhaul work programme we committed to continue to explore the removal of ineffective obligations and sanctions that were recommended by the Welfare Expert Advisory Group. The short-term focus of that work is on the sanctions that impact children and their families and whānau. Initial progress on this review of obligations and sanctions has included the repeal of section 192 of the Social Security Act 2018 in April of 2020 which previously sanctioned sole parent beneficiaries who did not identify the other parent of their child.The subsequent child policy was also identified by the Welfare Expert Advisory Group as an ineffective sanction and one of many aspects of a system that does not support women's role as carers. The previous National Government introduced the policy because they were focused on requiring parents to return to work as early as possible after having a subsequent child. However there is no evidence to suggest that the policy has reduced time on benefits or improved financial or social outcomes. In fact it disproportionately impacts Māori and women and it has contributed to increased complexity in the welfare system and reduced flexibility for parents to spend time with their child or children.This bill will achieve the removal of the subsequent child policy which was recommended for removal alongside other obligations and sanctions in the welfare system. The removal of the subsequent child policy through this bill builds on the Government's work to make the welfare system fairer. By 1 April 2022 109000 families and whānau with children will also be on average $175 a week better off as a result of all the Government's changes to income support since 2017. Homai te pakipaki. This includes the benefit increases through Budget 2021 the Families Package the $25 lift to benefit rates as part of the initial COVID-19 response and the indexation of main benefits to average wage increases in the last two years.So what does this bill do? If a caregiver has a dependent child and becomes the caregiver of an additional dependent child whilst receiving a relevant main benefit the additional child is deemed to be a subsequent child under the current policy. A client's eligibility for sole parent support and work or work preparation obligations are generally based on the age of their youngest dependent child. Under the current policy when a client has a subsequent child while receiving a main benefit that child's age is only considered for the purposes of benefit entitlements and work or work preparation obligations until they reach the age of one. Work or work preparation obligations and eligibility for sole parent support are then generally based upon the age of a parent's youngest non-subsequent child. This means that subsequent children are treated differently compared to non-subsequent children in the welfare system. In some instances it means part-time or full-time work obligations are applied to parents from their subsequent child's first birthday.Part 1 of the bill will remove the subsequent child policy from the Social Security Act 2018 and Social Security Regulations 2018 on 8 November 2021. This change is intended to have a positive impact on the cohort affected by the policy including increased flexibility to spend time at home with children if that is the best option for the family increased equity and simplicity in the welfare system and a likely reduction in stress for clients which may positively impact mental health and wellbeing through the setting of work obligations that recognise the age of all dependent children in the family.Part 2 of the bill sets out transitional provisions to improve the client experience and comes into force on 11 October 2021. This allows for a 28-day transition period prior to the policy's removal which will improve the client experience of clients with a benefit application or a change in circumstances around the time of the policy's removal by preventing multiple changes to their benefit type and/or work or work preparation obligations within a short period of time. The transition period also extends 28 days after the policy's removal. The dates of application decision by the Ministry of Social Development and benefit commencement can be spread across several weeks. A broad window is therefore required to ensure equitable treatment across a range of situations within the transition period and to ensure a streamlined process for clients.I note that the bill is narrow in scope focusing only on the subsequent child policy itself. This will return clients with a subsequent child to the status quo of the usual work and work preparation obligations framework rather than treating them differently based on their child being considered to be a subsequent child. As of 30 April 2021 approximately 11400 clients are impacted by the policy. We are continuing our work to review wider obligations and sanctions in the welfare system including the usual work and work preparation obligations framework as part of the medium-term welfare overhaul work programme.I'd like to take this opportunity to thank the Social Services and Community Committee for its consideration of the bill and to thank Angie Warren-Clark the chair of it. The committee has recommended by majority that the bill be passed with four minor and technical amendments. I welcome the committee's recommended minor and technical amendments which are in line with the policy intent of the removal of the subsequent child policy and improve the workability of the bill. I've provided further details on these amendments in the legislative statement that I presented to the House in advance of this second reading.I'd also like to acknowledge the individual organisations and the independent Crown entity who took time to consider and to submit on the bill. The select committee received 31 submissions on the bill and of those who provided written submissions 13 submitters gave oral presentations to the committee. It was encouraging to see that the majority of submitters were in support of the bill. Of the 31 submissions received 25 supported the bill four opposed the bill and the remaining two submissions did not explicitly indicate their position on the bill. Many submitters drew from personal or anecdotal experiences within the welfare system and made it clear that the current subsequent child policy has a negative impact on the parents or caregivers and the children that it affects. I'm proud to progress this bill—I should say: on behalf of Minister Sepuloni. She's proud to progress this bill with their support to remove this policy.A few themes of support for the bill raised by submitters. They align and support our intent for this bill which is ultimately to improve equity. Removing the policy will align the treatment of a subsequent child with that of a non-subsequent child in the setting of work or work preparation obligations in determining eligibility for sole parent support. Submitters in support of the bill highlighted specific concerns that the current subsequent child policy impacts child development does not reflect parents' caring responsibilities has caused stress and impacts mental health disproportionately impacts Māori and women has created inequities in the welfare system has not achieved its intended purpose puts pressure on low-income families to have fewer children and contributes to hardship and poverty. This bill aims to address many of these issues raised by submitters in the simplest possible way: by removing the subsequent child policy.In conclusion Madam Chair—Madam Speaker sorry—this Government's vision for the welfare system is to ensure that people—oh sorry Mr Speaker!—have an adequate income and standard of living are treated—Greg O'Connor: Blimmin masks!Hon KELVIN DAVIS: —with and can live in dignity—yeah ha ha!—and are able to participate meaningfully in their communities. This bill is a key part of the welfare overhaul work programme to build towards this vision. I commend this bill to the House.DEPUTY SPEAKER: The question is that the motion be agreed to.