2. Question No. 2—Social Development and EmploymentANGIE WARREN-CLARK (Labour) to the Minister for Social Development and EmploymentQuestion No. 2—Social Development and Employment2. ANGIE WARREN-CLARK (Labour) to the Minister for Social Development and Employment: What progress has been made to pass on child support to sole parent beneficiaries?Hon CARMEL SEPULONI (Minister for Social Development and Employment): In Budget 2022 we announced we would pass on child support to parents receiving a sole parent rate of benefit. It has been an incredibly complicated process to progress this policy but I'm pleased to inform the House that we are ready to bring forward the legislation and it will be in place in time for 1 July. Currently the Government retains child support payments for sole parents who get a benefit from the Ministry of Social Development up to the rate of their benefit rather than being passed on to support their children. However this is not the case for other beneficiaries. The bill which will be read in the House this week will end this injustice and child support payments will be passed on to the sole parents who need it the most.Angie Warren-Clark: Why are we making this change?Hon CARMEL SEPULONI: The current way we deal with child support for beneficiaries is discriminatory. Money that should be treated as income and used by parents to help provide for their children is being taken by the State. This differs from parents who have found a new partner and are receiving a couple's rate of benefit. These beneficiaries get to keep their child support and this is what causes the discrimination. This anomaly in the system dates back to 1936 and change is long overdue. Through this legislation this Government is delivering on its commitment to put dignity back in the welfare system and make it fairer. Equitable treatment of sole parent whānau will also mean a fairer deal for women who make up 88 percent of all sole parent benefit clients.Angie Warren-Clark: What impact will the changes make?Hon CARMEL SEPULONI: Amending the rules will provide better support to parents and lift up to 14000 children out of poverty. The changes build on the progress we have been making to improve people's lives through our Families Package and welfare reforms. It is estimated that 41550 sole parent families will be better off with a median gain of $20 per week. This means more cash in hand to support whānau coping with the increasing costs of living. This proposal also has the potential to strengthen the child support scheme. If parents know that the child support they pay will get to their own children it will encourage more parents to pay. There is also evidence that if child support is passed on it increases engagement by the parent paying child support with their child. This is much better for families in general.Angie Warren-Clark: How will the bill be implemented?Hon CARMEL SEPULONI: Under this bill when a sole parent receives child support the normal monthly payment they receive will be spread equally and charged across four or five weeks against their benefits. The Ministry of Social Development will then treat this child support as income for their assistance using automated systems. This approach will reduce the likelihood of debt accumulation and demands on the time of these families. Due to the complexity of the changes required to the welfare system to facilitate this our Government is taking a phased approach to implementation. Phase one of the bill will deliver most of the changes resulting in extra cash in hand for the vast majority of whānau on a sole parent benefit from July. Phase two will tackle the policy features that apply to more complex payment cases. We'll provide more detail on this as we work through the changes. By phasing the roll-out we can achieve the full benefit of the changes straight away for the vast majority of eligible parents.