Dyson Ruth: Social Security Amendment Bill — First Reading 
Dyson Ruth: Social Security Amendment Bill — First Reading 
[Volume:636;Page:7197] 
Hon RUTH DYSON (Associate Minister for Social Development and Employment (CYF)) 
 on behalf of the  
Minister for Social Development and Employment 
: I move  
That the Social Security Amendment Bill be now read a first time. 
 At the appropriate time I will move that the bill be referred to the Social Services Committee and that the committee report back to the House finally on or before 30 April 2007. This bill amends the Social Security Act 1964 an Act whose genesis is in the historic legislation of 1938 that was passed by the first Labour Government. It represents another step in our Government’s active approach to social support and highlights the importance of work in people’s lives. 
Our Government recognises that work is the cornerstone of people’s independence and social and economic well-being. Over the coming months the services offered by Work and Income will be further enhanced so that intensive work-focused support will be provided to every person who is receiving a benefit and able to work. This reform is about providing services on the basis of need not benefit category. It takes us a significant way forward in our programme to fully align the benefit system around work-focused services for everyone who is able to work. 
In the last 7 years our Government has reduced unemployment benefit numbers from around 160000 to under 40000. We have made excellent progress in providing stronger support for people who face particular barriers to work. The current high labour force participation rate of nearly 68.5 percent and the low unemployment rate of 3.8 percent are clear indicators of our success. We now have the resources to work intensively with people who are able to work have told us they want to work and need the right support to move into work. Alongside this activity we will continue to support people who are not able to work. 
Significant changes to service delivery are already under way. These changes are aimed at providing work-focused services and support for people right from the start. Enhancements are being made to employment and training assistance to improve flexibility and responsiveness so that assistance better meets individual needs. This will see real benefits for all people of working age who are seeking to work. In particular increased support for people receiving the sickness benefit or invalids benefit will help to ensure that those who are able to work receive the right support. The emphasis of the current initiatives is on getting the right services and support in place for people but legislative change is necessary to support those changes and simplify the system. This bill introduces those changes. 
The changes have a significant focus on youth. The shared Government and Mayors Task Force for Jobs goal is to have all 15-year-olds to 19-year-olds engaged in appropriate employment training or education activities. Enhancement through this legislation will contribute to this goal. From September next year a number of new requirements will be placed on people who are receiving financial support from the Government. Those applying for the unemployment benefit will be required to undertake a specific work or training-related activity or activities in the period between their first contact with Work and Income for assistance and their benefit commencing. They will be required to look for and accept any offer of suitable work during that time. This will mean that Work and Income will be able to direct a person to a work-related activity immediately and not have to wait until after the benefit has commenced. Additional activity requirements for people who are receiving the unemployment benefit will also be introduced. They may be asked to plan or undertake a specific activity that will improve their prospects for employment. 
The changes are designed to provide Work and Income with the flexibility to tailor the job search service to best meet the needs of the individual—in the current environment many jobs are no longer based on a Monday to Friday working week—to reflect the changes in workforce participation. The work test may where a person’s circumstances make it possible and appropriate be applied over 7 days. Many people on the sickness benefit or invalids benefit say they want to work or to develop skills that will help them to get work in the future. More actively working with these people and providing them with the right services and support to participate in the labour market will have long-term benefits for everyone. From September next year people receiving the sickness benefit or invalids benefit who may be able to work at some future point will be asked to plan for that eventual return and to undertake activities to help them develop the skills to do so. There is no intention to force people into work when they are clearly unable to work at all. Our Government recognises as it always has that work is not appropriate or possible for everyone and where that is the case we will continue to provide financial support. 
I mentioned earlier the specific focus on young people especially those 16-year-olds and 17-year-olds who no longer have the support of their parents. It is infinitely preferable for young people to be engaged in education or training than it is for them to be doing nothing. Missing out on those activities and the opportunities they offer can have a profoundly negative effect on a young person’s future circumstances including his or her ability to get a job. We know that young people who are inactive for long periods of time have a much greater risk of poor outcomes. Keeping young people actively engaged in training and education will motivate them to set and achieve positive goals. It will help towards addressing isolation and disconnection from society which can lead to negative outcomes and it can also lead to success in employment the pathway from poverty and into economic independence. Our aim is to work actively with young people who need our support and to encourage them to return to or continue with their education. From September next year 16-year-olds and 17-year-olds receiving an independent youth benefit will be required to actively seek work or participate in training or education activities for 30 to 40 hours a week. This will be a first and important step towards improving their current and future opportunities to work. 
Two other changes impact on young people. From May next year we are extending the access young people have to the independent youth benefit by making it available to those released from the custody of Child Youth and Family. This is a positive move. It means that young people who have been in a stable foster home may if they wish stay in their home and be in a position to contribute to household expenses. It recognises the need of the young person and the valuable support provided by foster parents. Changing the access that 16-year-olds and 17-year-olds will have to the domestic purposes benefit for the care of the sick and infirm from May next year is also included in this bill. 
One of the Government’s objectives is to enable greater choices for parents and caregivers around work and parenting. From September next year spouses or partners of beneficiaries with a dependent child under 6 will have the same planning and activity requirements as a sole parent. The part-time work-test requirement will be extended until the youngest child is 18 years old. At present the full-time work test is applied when the youngest child turns 14. The change will allow parents a further 4 years before the full-time work test requirements are applied. 
A number of people care for someone who needs full-time care. The people who do this are sacrificing the opportunity that paid work offers in order to provide a valuable service. Access to the domestic purposes benefit for the care of the sick and infirm has long been linked to the fact that the person being cared for would otherwise need hospital care. That is an outdated consideration. From May next year the full-time requirement is being widened to include community residential services rest homes and equivalent levels of care in the community. 
If a person does not apply for a benefit because of an error on the part of the department it is important that this can be rectified as quickly as possible. From July of next year the situation will change. The bill provides for the responsible Minister to consent to the payment of benefits starting earlier than the date of application where a person did not apply for a benefit because of an error on the part of the ministry. This is a significant improvement. 
Finally the bill will insert purpose and principle provisions into the Social Security Act. Some parts of the Act have a purpose statement but the Act has never had overarching purpose or principle provisions. A number of judgments from the Social Security Appeal Authority the High Court and the Court of Appeal have contained statements in relation to the purpose of the Act. Those have been taken into consideration in developing the bill. 
In closing I pay a tribute to the dedication and the professionalism of the staff and team led by Sue Mackwell in the Ministry of Social Development in bringing this large piece of work to such a constructive conclusion. I commend the bill to the House.