Coleman Jonathan: Social Assistance (Living Alone Payments) Amendment Bill — Second Reading 
Text is incorporated into the Bound Volume 
Coleman Jonathan: Social Assistance (Living Alone Payments) Amendment Bill — Second Reading 
[Sitting date: 11 December 2012. Volume:686;Page:7427. Text is incorporated into the Bound Volume.] 
Hon Dr JONATHAN COLEMAN (Minister of Defence) 
 on behalf of the Minister for Social Development: I move  
That the Social Assistance (Living Alone Payments) Amendment Bill be now read a second time 
. I wish to thank the Social Services Committee for its thorough consideration of the Social Assistance (Living Alone Payments) Amendment Bill. This bill amends the New Zealand Superannuation and Retirement Income Act 2001 and the War Pensions Act 1954. The proposed amendments improve service for recipients of New Zealand superannuation or a veterans pension who live alone. 
The bill includes several changes. The first and most significant change simplifies the process by which older New Zealanders access the extra assistance that recognises the additional costs of maintaining a household on their own. We are making the process simpler and more streamlined. We want to make sure that older New Zealanders are not burdened by unnecessary bureaucratic processes having to fill out additional application forms. It sees the current extra amount of $26.84 per week after tax the living alone payment replaced with a new single living alone rate of superannuation and veterans pension. This will in effect combine the single rate of New Zealand superannuation or veterans pension and the extra living alone benefit into a single rate. 
Currently this extra assistance known as the living alone payment is a separate payment. This means that the surviving superannuitant or veterans pensioner needs to make an additional application to receive it. The payment can be paid from the date of death of the spouse only if the application is received within 28 days of death. Otherwise it is from the date of application. For some surviving spouses the stressful time of bereavement can mean they overlook completing the application. This sometimes means missing out on receiving the living alone payment from the date their circumstances changed. This bill means that no older New Zealander living alone is worse off. 
This change will have two key benefits. Firstly older people living alone will not have to make a separate application to receive their full entitlement. Instead if their living circumstances change they can let us know over the phone by email or by visiting a Work and Income office. Secondly this bill will remove the 28-day time restriction and with it the unnecessary financial hardship that might arise from overlooked applications. The bill provides for a new single living alone rate that can be paid from the day the superannuitant or veterans pensioner becomes entitled to receive it and that is at it should be. 
This change aligns with other operational changes led by the Ministry of Social Development to simplify processes and to improve services. In March 2010 the Minister oversaw the establishment of the dedicated senior service line separate from Work and Income to identify ways to deliver high-quality services to older New Zealanders. Since its launch in May 2010 online applications for New Zealand superannuation have become commonplace. Currently around 31 percent of applications are made online. We have reviewed how we process disability allowances and funeral grants and have continued to grow the number of business partners offering commercial discounts to SuperGold card holders. It is an ongoing priority of the Minister that older New Zealanders can easily access their full entitlements to support and services. 
The next change addresses the definition of a dependent child. The bill proposes to make the reference to a “dependent child” in the living alone provisions of the New Zealand Superannuation and Retirement Income Act 2001 and in Part 6 of the War Pensions Act 1954 more consistent with the definition in the Social Security Act 1964 and the Income Tax Act 2007. Superannuitant parents will continue to receive the living alone rate of superannuation or a veterans pension until the end of the year in which the young person attains the age of 18 years provided that the young person remains financially dependent and is attending school or in tertiary education. This is consistent with the original policy intent. This change relates to the situation where a child aged 18 years or older who lives with their superannuitant parent is financially dependent and is attending school or in tertiary education. This amendment will ensure a consistent definition of a dependent child across the social assistance system reflecting that a young person who has attained the age of 18 years is considered an adult for most purposes. 
I can assure you that this change will not mean any young person living with a superannuitant parent is left without adequate financial support. A fundamental tenet of the social assistance system is that the correct social support where required is applied to meet a person’s needs. Living alone assistance recognises the extra costs of maintaining a home on your own and is for a single superannuitant or veterans pensioner including those who have a dependent child living with them. A person aged 18 or over irrespective of their own or their parents’ living circumstances can earn income from paid work. Others might receive a social security benefit such as the unemployment benefit or for people with a temporary or permanent disability a sickness benefit or an invalids benefit. Other financial support is also available—for example assistance with accommodation costs or disability-related costs. The Government ensures this range of financial assistance is there for young people in times of need. 
For those in tertiary study a student allowance or a student loan is available. A student in full-time tertiary study aged 18 to 24 who is living at home is eligible for a student allowance provided their parents’ combined annual income is under $83449.01 before tax. Students in receipt of a student allowance either the full amount or a reduced amount because of parental income are able to earn up to $206.73 before tax per week before their rate of allowance is reduced. A student in tertiary study who is not eligible for a student allowance because their own or their parents’ income is over the threshold can apply for a student loan for living costs course fees and course-related costs. This is consistent with Government policy for all tertiary students. 
The bill also contains an amendment of a technical nature. This sees the term “licensed boarding house” replaced with the term “boarding house” so that it is consistent with a recent amendment to section 66B of the Residential Tenancies Act 1986. In its consideration the select committee agreed to two minor technical changes to the bill as recommended by the Ministry of Social Development. The first change extended the date of enactment for the bill to 6 July 2011 in order to account for delays in completing the first reading of the bill. As that date has now passed the Minister will be introducing a Supplementary Order Paper in the Committee of the whole House to further extend the enactment date. 
The second change agreed by the select committee expanded the transitional provisions for the bill. This change will enable a client who has been bereaved within 28 days prior to the enactment date to have their application for the living alone payment backdated to the date of death of their spouse or partner. This would allow people in this situation to receive the living alone payment from the date of death to the bill’s date of commencement and the new single living alone rate thereafter. 
 The amendments contained in the bill will address issues with the current living alone payment. The Minister is confident that the amendments will ensure a fairer and more equitable experience for older New Zealanders who live alone. In summary this bill is further evidence of the commitment by this Government to ensure that superannuitants and veterans pensioners receive their full entitlement without an unnecessary burden placed on them to apply for it. The Prime Minister has repeatedly assured the public that New Zealand’s superannuation settings and the age of entitlement will not be changed by this Government. The simple common-sense changes in this bill streamline the payment. Finally I thank on behalf of the Minister the Social Services Committee for its consideration of the bill and agreement to these arrangements. I commend the bill to the House.