Estimates of appropriations

Vote Social Development - Social Development and Housing Sector - Estimates 2017/18

Note 76

From the Estimates of Appropriations 2017/18 in Budget 2017, Vote Social Housing was created by transferring relevant appropriations from Vote Social Development and Vote Building and Housing.

APPROPRIATION MINISTER(S): Minister for Disability Issues (M23), Minister for Social Housing (M37), Minister of Revenue (M57), Minister for Seniors (M61), Minister for Social Development (M63), Minister of Veterans' Affairs (M75), Minister for Youth (M77), Minister Responsible for Social Investment (M94)

APPROPRIATION ADMINISTRATOR: Ministry of Social Development

RESPONSIBLE MINISTER FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development

Overview of the Vote#

Some amounts that were in previous years appropriated in Vote Social Development are now to be appropriated in Vote Vulnerable Children, Oranga Tamariki (a new Vote with effect from 1 April 2017) and Vote Social Housing (a new Vote with effect from 1 July 2017).

The Minister for Social Development is responsible for the appropriations in Vote Social Development for the 2017/18 financial year covering the following:

  • a total of nearly $13,671 million on payments of New Zealand Superannuation
  • a total of nearly $4,311 million on payments for the working age benefits - Jobseeker Support, Sole Parent Support and Supported Living Payment
  • a total of nearly $727 million on payments for assistance with expenses related to disability, hardship and entering or remaining in the workforce
  • a total of over $662 million on improved employment and social outcomes support
  • a total of nearly $583 million on payments to assist people to obtain a qualification, or for youth to continue education/training or obtain work, or to support young parents
  • a total of over $370 million on other forms of financial assistance such as childcare, care of unsupported children and special circumstances
  • a total of over $203 million on advances of benefits and other recoverable payments to assist with hardship
  • a total of over $122 million on purchasing services from non-governmental organisation service providers and crown entities
  • a total of nearly $106 million on Corporate Support Services providing services to the Ministry for Vulnerable Children, Oranga Tamariki under a shared services agreement
  • a total of nearly $97 million on debt write-downs
  • a total of nearly $93 million on community support services
  • a total of over $69 million for departmental capital expenditure
  • a total of over $60 million on specialised services, including services for students, seniors and management of service cards
  • a total of nearly $50 million on services for investigation of overpayments, fraudulent payments and collection of overpayments
  • a total of over $24 million on social policy advice, and data, analytics and evidence services
  • a total of nearly $8 million on historic claims resolution
  • a total of over $4 million on planning, correspondence and monitoring
  • a total of $673,000 on the mental health and employment social bond pilot, and
  • a total of $225,000 on place-based initiatives - Tairawhiti local leadership.

The Minister for Youth is responsible for an appropriation in the Vote for the 2017/18 financial year covering the following:

  • a total of nearly $11 million on partnering for youth development, including increasing youth development opportunities.

The Minister of Revenue is responsible for appropriations in the Vote for the 2017/18 financial year covering the following:

  • a total of nearly $1,632 million on payments for student loans, and
  • a total of over $15 million for management of student loans.

The Minister for Disability Issues is responsible for an appropriation in the Vote for the 2017/18 financial year covering the following:

  • a total of nearly $4 million on promoting positive outcomes for disabled people.

The Minister of Veterans' Affairs is responsible for appropriations in the Vote for the 2017/18 financial year covering the following:

  • a total of over $162 million on payment of Veterans' Pension, and
  • a total of $443,000 for processing of Veterans' Pensions.

The Minister for Seniors is responsible for an appropriation in the Vote for the 2017/18 financial year covering the following:

  • a total of over $1 million on services from the Office for Seniors.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2016/17 2017/18
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses#

     

Corporate Support Services (M63)#

This appropriation is limited to the provision of corporate support services to other agencies.
25,000 25,000 105,500

Data, Analytics and Evidence Services (M63)#

This appropriation is limited to providing data, analytics and evidence services to better inform government decision-making.
12,510 12,510 9,940

Income Support and Assistance to Seniors (M63)#

This appropriation is limited to paying New Zealand Superannuation and social security entitlements to older persons, providing advice to them, administering international social security agreements relating to non-superannuitants, and assessing financial entitlement to Residential Care Subsidies.
43,781 43,781 37,150

Investigation of Overpayments and Fraudulent Payments and Collection of Overpayments (M63)#

This appropriation is limited to services to minimise errors, fraud and abuse of the benefit system and Income Related Rent, and services to manage the collection of overpayments, recoverable assistance loans and other balances owed by former clients.
49,209 49,209 49,808

Management of Service Cards (M63)#

This appropriation is limited to assessing entitlement, issuing cards, and promoting and distributing information about the Community Services, SuperGold and Veteran SuperGold cards, including enlisting business partners to provide discounts to SuperGold cardholders.
4,879 4,879 6,705

Management of Student Loans (M57)#

This appropriation is limited to assessing, paying and reviewing entitlements for student loans and providing guidance to students making financial and study decisions.
15,545 15,545 15,218

Management of Student Support (M63)#

This appropriation is limited to managing non-recoverable financial support to students, involving assessing and paying Student Allowances and other income support to eligible secondary and tertiary students.
17,356 17,356 16,459

Place-based Initiatives - Tairawhiti Local Leadership (M63)#

This appropriation is limited to the provision of operational support for the place-based approach being led by the Tairawhiti Social Impact Collective.
205 205 225

Planning, Correspondence and Monitoring (M63)#

This appropriation is limited to providing planning, reporting, monitoring and statutory appointment advice (other than policy decision-making advice) on Crown entities, and correspondence services to support Ministers to discharge their portfolio responsibilities.
6,344 6,344 4,494

Policy Advice (M63)#

This appropriation is limited to providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government social policy and related matters, including social sector issues.
20,167 20,167 14,393

Processing of Veterans' Pensions (M75)#

This appropriation is limited to the processing and administrative aspects of payment of Veterans' Pensions and related allowances .
588 588 443

Promoting Positive Outcomes for Disabled People (M23)#

This appropriation is limited to providing services to promote and monitor the implementation of the New Zealand Disability Strategy, to monitor and implement the United Nations Convention on the Rights of Persons with Disabilities, and to provide information to Ministers on disability matters.
4,045 4,045 3,716

Promoting Positive Outcomes for Seniors (M61)#

This appropriation is limited to providing information and facilitation to protect the rights and interests of older people, to promote local community involvement in senior issues, and ministerial services.
1,010 1,010 1,022

Adoption Services (M63)#

This appropriation is limited to the management of services, incorporating education, assessment, reporting, counselling, and mediation, to all people who are party to adoption-related matters, past or present.
3,998 3,998 -

Care and Protection Services (M63)#

This appropriation is limited to the provision of social work and support services, both statutory and informal, to promote the wellbeing of children, young people and their families who are or have been in contact with the care system, including care and protection services; services for the development of the potential of such children and young people; and the provision of education and advice to help prevent child abuse and neglect.
316,957 316,957 -

Children's Action Plan (M63)#

This appropriation is limited to activities necessary to implement the Children's Action Plan.
8,780 8,780 -

Designing and Implementing Social Investment (M94)#

This appropriation is limited to expenses incurred in designing and implementing a cross agency social investment system.
9,018 9,018 -

Investing in Communities (M63)#

This appropriation is limited to approving community based social services; managing the relationship with service providers, including funding and monitoring; and the co-ordination of social support services to strengthen families and whanau.
39,163 39,163 -

Place-based initiatives - national support (M63)#

This appropriation is limited to providing support and evaluation across place-based initiatives.
610 610 -

Youth Justice Services (M63)#

This appropriation is limited to social work and other services to manage and resolve offending behaviour by children and young people, by providing assessment, support, programmes, containment and care of young offenders.
95,528 95,528 -

Total Departmental Output Expenses#

674,693 674,693 265,073

Departmental Other Expenses#

     

Transformation Programme: Investing in New Zealand Children and their Families (M63)#

This appropriation is limited to the co-design and implementation of system-wide reform of services provided to New Zealand's vulnerable children, young people and their families.
21,128 21,128 -

Total Departmental Other Expenses#

21,128 21,128 -

Departmental Capital Expenditure#

     

Ministry of Social Development - Capital Expenditure PLA (M63)#

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Social Development, as authorised by section 24(1) of the Public Finance Act 1989.
103,798 103,798 69,225

Total Departmental Capital Expenditure#

103,798 103,798 69,225

Non-Departmental Output Expenses#

     

Children's Commissioner (M63)#

This appropriation is limited to the provision of services from the Children's Commissioner including the discharge of the Commissioner's duties under the Children's Commissioner Act 2003, monitoring and reporting on services delivered under the Children, Young Persons, and Their Families Act, 1989, and the identification of aspects of law, policy and practice that might adversely affect children and the development and proposal of remedies.
2,157 2,157 2,657

Community Participation Services (M63)#

This appropriation is limited to the provision of services, resources, assistance and support to people so they can participate in and contribute to the wider community.
82,631 82,631 81,160

Families Commission (M63)#

This appropriation is limited to the provision of services from the Families Commission to promote the wellbeing of a full range of New Zealand families and whanau through undertaking research and evidence gathering to build a transfer of knowledge to policymakers and purchasers and providers of services.
14,092 14,092 12,639

Student Placement Services (M63)#

This appropriation is limited to placement services for students for holiday and term employment.
3,512 3,512 3,512

Counselling and Rehabilitation Services (M63)#

This appropriation is limited to the purchase of services, including family counselling and other post-crisis interventions that restore the wellbeing of children, young people and families who have suffered harm and abuse or other forms of family breakdown or youth justice issues.
16,879 16,879 -

Education and Prevention Services (M63)#

This appropriation is limited to the purchase of education and prevention programmes and initiatives that aim to provide skills to children, young people and families who are at risk of harm or abuse, which will help them reduce the risk of that abuse or harm.
9,279 9,279 -

Emergency Housing Response (M37)#

This appropriation is limited to activities relating to the provision of emergency housing support for eligible families and individuals in high need areas.
10,445 10,445 -

Family Wellbeing Services (M63)#

This appropriation is limited to the purchase of services that aim to improve the life outcomes for children, young people and families through support and development programmes, and programmes that will prevent any future harm or abuse.
84,913 84,913 -

Strong Families and Connected Communities (M63)#

This appropriation is limited to initiatives and services, with a focus on prevention and early intervention, that support and strengthen community functioning and improve outcomes for families.
109,144 109,144 -

Total Non-Departmental Output Expenses#

333,052 333,052 99,968
     

Childcare Assistance (M63)#

This appropriation is limited to assistance for the costs of childcare that meets specific quality guidelines, where parents meet activity and income criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
205,345 197,345 197,320

Disability Assistance (M63)#

This appropriation is limited to the Disability Allowance for people with disability costs and the Child Disability Allowance to the caregivers of children with a serious disability, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
380,022 377,022 379,491

Family Start/NGO Awards (M63)#

This appropriation is limited to the payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications, in accordance with Cabinet decisions.
705 705 705

Hardship Assistance (M63)#

This appropriation is limited to Civil Defence payments, Funeral Grants, Live Organ Donors Assistance, Special Benefit, Special Needs Grants, Temporary Accommodation Assistance and Temporary Additional Support to provide means-tested temporary financial assistance to persons with emergency or essential costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
356,979 341,979 343,761

Jobseeker Support and Emergency Benefit (M63)#

This appropriation is limited to means-tested income support for people who are eligible for Jobseeker Support or an Emergency Benefit, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,712,139 1,694,839 1,662,932

New Zealand Superannuation (M63)#

This appropriation is limited to an income for people who have reached the qualifying age of 65 years and fulfil the residency requirements, as provided for in the New Zealand Superannuation and Retirement Income Act 2001.
13,069,729 13,043,729 13,670,779

Orphan's/Unsupported Child's Benefit (M63)#

This appropriation is limited to the Orphan's/Unsupported Child's Benefit to provide income support for people charged with the responsibility for a child whose parents are dead or cannot be located, suffer a serious long-term disablement, or where there has been a breakdown in the child's family, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
154,067 152,267 161,730

Sole Parent Support (M63)#

This appropriation is limited to means-tested income support for people who are eligible for Sole Parent Support, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,176,096 1,163,696 1,116,799

Special Circumstance Assistance (M63)#

This appropriation is limited to financial assistance to people in special circumstances and comprises the Clothing Allowance, and providing assistance for community costs, domestic violence and witness protection relocation, home help, social rehabilitation assistance, telephone costs paid in accordance with criteria set out in the Social Security Act 1964, and delegated legislation made under that Act; and Civilian Amputees Assistance, paid in accordance with criteria set out in the Disabled Persons Community Welfare Act 1975.
11,644 11,044 11,269

Student Allowances (M63)#

This appropriation is limited to means-tested allowances for students on an approved study programme, paid in accordance with criteria set out in the Student Allowance Regulations 1998; and payment of Student Allowance Transfer Grants to students with dependants, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
495,091 476,791 504,646

Study Scholarships and Awards (M63)#

This appropriation is limited to scholarships and awards to tertiary students awarded in accordance with Cabinet decisions; and Teach NZ Scholarships awarded in accordance with the Education Act 1989.
19,167 19,167 19,167

Supported Living Payment (M63)#

This appropriation is limited to means-tested income support for people who are eligible for the Supported Living Payment, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,537,220 1,529,520 1,530,887

Transitional Assistance (M63)#

This appropriation is limited to supplementary financial assistance to people who are adversely affected by changes in policy or legislation, so they will not be financially worse off at the point of change, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
65 65 1,313

Veterans' Pension (M75)#

This appropriation is limited to the provision of the Veterans' Pension, and lump sum payments upon the death of a qualifying veteran or a veteran's qualifying spouse or partner, to eligible veterans and their spouses, partners and dependent children, as set out in the Veterans' Support Act 2014 and delegated legislation made under that Act.
176,353 174,853 162,002

Work Assistance (M63)#

This appropriation is limited to payments to beneficiaries, low income earners, students and ex beneficiaries to assist them to obtain and maintain employment, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
2,923 2,323 2,423

Youth Payment and Young Parent Payment (M63)#

This appropriation is limited to income support and incentive payments for people who are eligible for the Youth Payment or Young Parent Payment, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
47,595 46,195 58,360

Accommodation Assistance (M37)#

This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,146,156 1,128,656 -
20,491,296 20,360,196 19,823,584

Non-Departmental Other Expenses#

     

Debt Write-downs (M63)#

This appropriation is limited to the provision for write-downs of Crown debt administered by the Ministry of Social Development due to debt write offs or debt provisions resulting from the need to value debt in accordance with generally accepted accounting practice.
97,891 97,891 96,933

Extraordinary Care Fund (M63)#

This appropriation is limited to providing financial assistance to carers receiving the Orphan's Benefit or Unsupported Child's Benefit to assist with costs for children in their care who are either experiencing difficulties that significantly impact on their development, or who are showing promise.
2,308 2,308 2,308

Out of School Care and Recreation Programmes (M63)#

This appropriation is limited to the provision of assistance to Out of School Care and Recreation programmes approved under the Children, Young Persons, and Their Families Act 1989, to assist with the establishment and/or operating costs of OSCAR programmes.
19,410 19,410 19,473

Hurunui/Kaikoura Earthquake Employment Support (M63)#

This appropriation is limited to the provision of assistance to employers for employees who were in paid work immediately prior to the series of Hurunui/Kaikoura earthquakes on 14 November 2016, and whose paid work has been adversely affected by the earthquakes.
17,540 17,540 -

Total Non-Departmental Other Expenses#

137,149 137,149 118,714

Non-Departmental Capital Expenditure#

     

Recoverable Assistance (M63)#

This appropriation is limited to recoverable assistance payments, as a facility for low-income earners and beneficiaries to access means-tested assistance to help them to meet essential and immediate needs, or costs in specific circumstances, and to meet costs of pre-employment drug tests, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.
196,191 184,191 203,449

Student Loans (M57)#

This appropriation is limited to loans to tertiary students undertaking studies at approved tertiary institutions in accordance with Cabinet decisions.
1,634,026 1,589,026 1,631,735

Total Non-Departmental Capital Expenditure#

1,830,217 1,773,217 1,835,184

Multi-Category Expenses and Capital Expenditure#

     

Community Support Services MCA (M63)#

The overarching purpose of this appropriation is to prevent and reduce vulnerability and harm for individuals, families and communities.
- - 92,802
Departmental Output Expenses
     
Developing and Managing Community Services
This category is limited to approving, monitoring, contracting and managing the relationships with community-based service providers; engaging with communities and developing services.
- - 19,083
Non-Departmental Output Expenses
     
Community Support and Advice
This category is limited to services that build financial capability, develop community and provider capability and provide targeted advice and support for vulnerable individuals and families.
- - 26,156
Participation and Support Services for Seniors
This category is limited to services that address isolation, abuse and neglect of older people, and support participation in communities.
- - 2,990
Supporting Victims and Perpetrators of Family and Sexual Violence
This category is limited to services that support victims of family and sexual violence and address perpetrator behaviour.
- - 44,573

Improved Employment and Social Outcomes Support MCA (M63)#

The single overarching purpose of this appropriation is to operate the benefit system and associated interventions in such a way as to improve client outcomes (employment and social) by moving them closer to independence, with a focus on those at risk of long term benefit receipt.
673,653 673,653 662,372
Departmental Output Expenses
     
Administering Income Support
This category is limited to assessing, paying, reviewing entitlements and collecting balances owed by clients for income support, supplementary assistance, grants and allowances.
289,438 289,438 266,514
Improving Employment Outcomes
This category is limited to providing specified assistance, including services provided in accordance with criteria set out in delegated legislation made under the Social Security Act 1964, to support people who are receiving or likely to receive working age benefits or youth support payments and are work ready to move into sustainable employment.
299,246 299,246 309,519
Improving Work Readiness Outcomes
This category is limited to providing services, including services provided in accordance with criteria set out in delegated legislation made under the Social Security Act 1964, to address barriers to employment (such as literacy, numeracy, health, skills, drug or alcohol use, confidence and motivation) for people who are receiving or likely to receive working age benefits or youth support payments so that they become work ready.
84,969 84,969 86,339

Independent Advice on Government Priority Areas MCA (M63)#

The overarching purpose of this appropriation is to provide independent advice to the Minister for Social Development for discharging decision-making responsibilities.
518 518 518
Non-Departmental Output Expenses
     
Other Advice
This category is limited to the procurement of other advice (including advice on operational matters; advice from expert parties that provide review services not available in-house; advice on matters where a review is necessary but cannot be undertaken due to a conflict of interest; and advice on procurement to ensure value for money) on government priority areas.
364 364 269
Policy Advice
This category is limited to the provision of independent advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government priority areas.
154 154 249

Partnering for Youth Development MCA (M77)#

The single overarching purpose of this appropriation is to improve outcomes for young people through youth development opportunities.
10,515 10,515 10,592
Departmental Output Expenses
     
Administering Youth Development
This category is limited to generating, funding and promoting youth development opportunities.
2,682 2,682 2,339
Non-Departmental Output Expenses
     
Increasing Youth Development Opportunities
This category is limited to purchasing youth development opportunities.
7,833 7,833 8,253

Emergency Housing MCA (M37)#

The single overarching purpose of this appropriation is to fund the delivery of emergency housing places in New Zealand.
23,652 23,652 -
Non-Departmental Output Expenses
     
Emergency Housing Services
This category is limited to payments to emergency housing providers on a per household basis to cover tenancy and property management; and services to support tenants in emergency housing to move into sustainable housing.
14,624 14,624 -
Provision of Emergency Housing Places
This category is limited to supporting emergency housing providers to provide emergency housing places.
9,028 9,028 -

Social Housing Outcomes Support MCA (M37)#

The single overarching purpose of this appropriation is to operate the social housing register and associated interventions in such a way as to support more people with the greatest housing need into housing, and to move those who are capable of housing independence closer towards that.
54,380 54,380 -
Departmental Output Expenses
     
Services to Support People to Access Accommodation
This category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider.
44,830 44,830 -
Non-Departmental Output Expenses
     
Services Related to Supporting Outcomes for those in need of or at risk of needing Social Housing
This category is limited to the provision of support services to those in need of social housing or those at risk of entering social housing.
5,000 5,000 -
Non-Departmental Other Expenses
     
Housing Support Package
This category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions.
4,550 4,550 -

Social Housing Purchasing MCA (M37)#

The single overarching purpose of this appropriation is to secure and purchase social housing tenancies for those who are eligible.
899,924 899,924 -
Non-Departmental Output Expenses
     
Part Payment of Rent to Social Housing Providers
This category is limited to the part purchase of tenancies from social housing providers.
847,994 847,994 -
Services Related to the Provision of Social Housing
This category is limited to the provision of services related to the provision of social housing by a social housing provider.
400 400 -
Non-Departmental Other Expenses
     
Support for the Provision of Social Housing Supply
This category is limited to providing support to secure access to properties for social housing providers to use for social housing tenancies.
51,530 51,530 -

Social Sector Trials MCA (M63)#

The single overarching purpose of this appropriation is to trial new ways of delivering social and community assistance based on particular community needs
2,111 2,111 -
Departmental Output Expenses
     
National Leadership and Administration of Social Sector Trials programme, and Individual-led Social Sector Trials
This category is limited to the administration of the Social Sector Trials by a national programme office, and by government-employed Social Sector Trial Leads in specified locations, leading a cross-agency approach to improve outcomes for target groups.
700 700 -
Non-Departmental Output Expenses
     
Non-Governmental Organisation led Social Sector Teams and Contracted Programmes and Services
This category is limited to the administration of the Social Sector Trials by non-governmental organisations in specified locations, leading a cross-agency approach to improve outcomes for target groups, and the social services purchased by the Social Sector Trials to improve social service delivery and improve outcomes.
1,411 1,411 -

Total Multi-Category Expenses and Capital Expenditure#

1,664,753 1,664,753 766,284

Total Annual and Permanent Appropriations#

25,256,086 25,067,986 22,978,032

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Departmental Output Expenses#

   

Administering Support for the Mental Health and Employment Social Bond Pilot (M63)#

This appropriation is limited to the costs of administering and providing business support to the Mental Health and Employment Social Bond Pilot.

Commences: 01 February 2017

Expires: 30 June 2021
Original Appropriation 340
Adjustments to 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 340
Actual to 2015/16 Year End -
Estimated Actual for 2016/17 40
Estimated Actual for 2017/18 40
Estimated Appropriation Remaining 260

Claims Resolution (M63)#

This appropriation is limited to resolving claims of abuse and neglect for people who were under the supervision or in the care, custody or guardianship of the state or who had come to the notice of the state prior to 2008.

Commences: 01 April 2017

Expires: 30 June 2021
Original Appropriation 25,049
Adjustments to 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 25,049
Actual to 2015/16 Year End -
Estimated Actual for 2016/17 2,000
Estimated Actual for 2017/18 7,683
Estimated Appropriation Remaining 15,366

Non-Departmental Output Expenses#

   

Mental Health and Employment Social Bond Pilot (M63)#

This appropriation is limited to the outcome payments incurred under the Mental Health and Employment Social Bond Pilot.

Commences: 01 February 2017

Expires: 30 June 2021
Original Appropriation 3,800
Adjustments to 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 3,800
Actual to 2015/16 Year End -
Estimated Actual for 2016/17 241
Estimated Actual for 2017/18 633
Estimated Appropriation Remaining 2,926

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

  2016/17 2017/18
  Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual and Permanent Appropriations 25,256,086 25,067,986 22,978,032
Total MYA Departmental Output Expenses Forecasts 2,040 2,040 7,723
Total MYA Non-Departmental Output Expenses Forecasts 241 241 633

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

25,258,367 25,070,267 22,986,388

Capital Injection Authorisations#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Ministry of Social Development - Capital Injection (M63) 9,483 9,483 7,101

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Extending Earthquake Support for the Kaikoura Region Hurunui/Kaikoura Earthquake Employment Support (M63) 5,000 - - - -
 
Non-Departmental Other Expenses
         
Kaikoura Earthquake: Extension of Support Subsidy: Decisions by Ministers with Power to Act Hurunui/Kaikoura Earthquake Employment Support (M63) 5,000 - - - -
 
Non-Departmental Other Expenses
         
BPS Seed Fund: SIU Commissioning Platform Designing and Implementing Social Investment (M94) 878 - - - -
 
Departmental Output Expenses
         
Ministry of Social Development - Maintaining Services Management of Student Support (M63) - 187 169 169 168
  Promoting Positive Outcomes for Disabled People (M23) - 31 28 28 28
  Promoting Positive Outcomes for Seniors (M61) - 12 10 11 10
  Income Support and Assistance to Seniors (M63) - 420 376 377 374
  Management of Student Loans (M57) - 173 156 157 155
  Planning, Correspondence and Monitoring (M63) - 51 46 46 46
  Processing of Veterans' Pensions (M75) - 5 5 5 5
  Data, Analytics and Evidence Services (M63) - 98 89 89 88
  Policy Advice (M63) - 184 164 164 162
  Investigation of Overpayments and Fraudulent Payments and Collection of Overpayments (M63) - 563 504 507 502
  Management of Service Cards (M63) - 76 69 69 68
 
Departmental Output Expenses
         
 

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Administering Income Support
- 3,014 2,672 2,585 2,646
 
  • Improving Employment Outcomes
- 3,414 3,059 3,166 3,133
 
  • Improving Work Readiness Outcomes
- 975 880 853 844
 
Departmental Output Expenses

Partnering for Youth Development MCA (M77)#

         
 
  • Administering Youth Development
- 27 24 24 24
 
Departmental Output Expenses

Community Support Services MCA (M63)#

         
 
  • Developing and Managing Community Services
- 220 199 200 197
 
Departmental Output Expenses
         
Business Support Package after the 14 November 2016 Earthquake: Decisions by Ministers with Power to Act Hurunui/Kaikoura Earthquake Employment Support (M63) 7,540 - - - -
 
Non-Departmental Other Expenses
         
Changes to Levy funding allocations and processes for migrant settlement services from 2017/18

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Administering Income Support
- (782) (782) (782) (782)
 
Departmental Output Expenses
         
Children's Commissioner - Statutory Advice and Increased Monitoring Coverage Children's Commissioner (M63) - 500 - - -
 
Non-Departmental Output Expenses
         
Data and Analytics Contingency: Tranche One Investment Proposals Designing and Implementing Social Investment (M94) 1,140 420 - - -
 
Departmental Output Expenses
         
 

Ministry of Social Development - Capital Injection (M63)#

638 126 - - -
Data and Analytics Contingency: Tranche Two Investment Proposals Data, Analytics and Evidence Services (M63) 326 951 1,477 1,405 -
 
Departmental Output Expenses
         
 

Ministry of Social Development - Capital Injection (M63)#

595 - - - -
Developing an Integrated Social Investment and Purchasing Model for Social Housing Policy Advice (M63) 527 1,240 999 940 910
 
Departmental Output Expenses
         
Draw down of remaining Social Investment Unit funding Designing and Implementing Social Investment (M94) 2,982 - - - -
 
Departmental Output Expenses
         
E Tu Whanau Programme of Action

Community Support Services MCA (M63)#

         
 
  • Developing and Managing Community Services
- 500 500 - -
 
Departmental Output Expenses
         
 
  • Supporting Victims and Perpetrators of Family and Sexual Violence
- 1,500 1,500 - -
 
Non-Departmental Output Expenses
         
Employee Safety and Security Income Support and Assistance to Seniors (M63) - 212 - - -
  Investigation of Overpayments and Fraudulent Payments and Collection of Overpayments (M63) - 284 - - -
 
Departmental Output Expenses
         
 

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Administering Income Support
- 1,521 - - -
 
  • Improving Employment Outcomes
- 1,722 - - -
 
  • Improving Work Readiness Outcomes
- 492 - - -
 
Departmental Output Expenses
         
Family Incomes Package Jobseeker Support and Emergency Benefit (M63) - (824) (3,340) (3,397) (3,397)
  Supported Living Payment (M63) - (3,531) (14,537) (16,163) (16,163)
  Sole Parent Support (M63) - (6,421) (25,908) (27,335) (27,335)
  Youth Payment and Young Parent Payment (M63) - (101) (417) (440) (440)
  New Zealand Superannuation (M63) - 788 (319) (16,801) (40,135)
  Veteran's Pension (M75) - (79) (338) (420) (515)
  Hardship Assistance (M63) - (24,245) (102,451) (108,352) (115,061)
  Transitional Assistance (M63) - 1,063 500 400 250
  Student Allowances (M63) - 6,300 19,500 19,500 19,800
 
Benefits or Related Expenses
         
Funding Additional Meetings of the Youth Advisory Panel

Independent Advice on Government Priority Areas MCA (M63)#

  • Policy Advice
Non-Departmental Output Expense
(20) (20) - - -
Funding for Specialist Sexual Violence Services contingency drawdown

Community Support Services MCA (M63)#

         
 
  • Developing and Managing Community Services
- 72 - - -
 
Departmental Output Expenses
         
 
  • Supporting Victims and Perpetrators of Family and Sexual Violence
- 1,824 6,397 6,159 6,159
 
Non-Departmental Output Expenses
         
Further Extension of Rural Assistance Payments (Drought) and the Water Storage and Irrigation Investment Proposals Hardship Assistance (M63) 232 - - - -
 
Benefits or Related Expenses
         
Gang Action Plan Community-Based Pilots

Community Support Services MCA (M63)#

         
 
  • Developing and Managing Community Services
- 150 - - -
 
Departmental Output Expenses
         
 
  • Supporting Victims and Perpetrators of Family and Sexual Violence
- 1,600 - - -
 
Non-Departmental Output Expenses
         
Individual Placement Support for Clients with Mental Health Conditions

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Improving Employment Outcomes
- 103 1,339 1,332 1,332
 
Departmental Output Expenses
         
Intensive Client Support - Extension

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Improving Employment Outcomes
- 7,200 6,100 6,200 -
 
Departmental Output Expenses
         
Investing in Children: Contingency Drawdown Transformation Programme: Investing in New Zealand Children and their Families (M63) 6,629 7,564 4,000 4,000 4,000
 
Departmental Other Expenses
         
Measures to Support More People in Emergency Housing

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Administering Income Support
2,000 2,600 - - -
 
Departmental Output Expenses
         
North Canterbury Earthquake: Proposal for a Special Primary Sector Assistance Package: Decisions by Ministers with Power to Act; and Emergency Fisheries Measures Hardship Assistance (M63) 200 - - - -
 
Benefits or Related Expenses
         
Place-based Approaches Overview and Proposal for National Support Functions Place-based Initiatives - national support (M63) 610 1,020 - - -
 
Departmental Output Expenses
         
Place-based Social Investment in Tairawhiti - Next Steps Place-based Initiatives - Local Leadership Support for Tairawhiti (M63) 205 225 - - -
 
Departmental Output Expenses
         
Historic and Contemporary Claims Resolution Claims Resolution (MYA) (M63) - 3,683 3,683 3,683 -
 
Departmental Output Expenses
         
Revised contract for the Growing Up in New Zealand study Families Commission (M63) (1,526) (481) (3,813) (5,109) (5,109)
 
Non-Departmental Output Expenses
         
Rural Assistance Payments for Northland farmers affected by drought in 2017 Hardship Assistance (M63) 130 31 - - -
 
Benefits or Related Expenses
         
Severe weather event (Cyclones Debbie and Cook) April 2017 Hardship Assistance (M63) 30 170 - - -
 
Benefits or Related Expenses
         
Social Bond: Mental Health and Employment Administering Support for the Mental Health and Employment Social Bond Pilot (M63) 40 40 40 140 80
 
Departmental Output Expenses
         
  Mental Health and Employment Social Bond Pilot (M63) 241 633 633 633 1,660
 
Non-Departmental Output Expenses
         
Benefits for Recent Migrants - Tightening Access Youth Payment and Young Parent Payment (M63) - - (25) (51) (52)
  Jobseeker Support and Emergency Benefit (M63) - - (3,583) (7,314) (10,339)
  Sole Parent Support (M63) - - (84) (172) (175)
  Supported Living Payment (M63) - - (512) (1,046) (1,321)
 
Benefits or Related Expenses
         
 

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Administering Income Support
- 406 - - -
  Departmental Output Expenses          
Temporary Accommodation Assistance Extension Hardship Assistance (M63) - 233 138 69 -
 
Benefits or Related Expenses
         
 

Improved Employment and Social Outcomes Support MCA (M63)#

         
 
  • Administering Income Support
- 100 194 100 -
 
Departmental Output Expenses
         
Youth Enterprise Initiatives Expansion

Partnering for Youth Development MCA (M77)#

         
 
  • Increasing Youth Development Opportunities
- 1,500 1,500 1,500 1,500
 
Non-Departmental Output Expenses
         
Total Initiatives   33,397 19,739 (99,159) (132,871) (176,683)

Summary of Financial Activity#

  2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations#

                       
Output Expenses 300,827 269,602 242,986 272,652 300,513 300,513 272,796 100,601 373,397 369,077 367,836 359,671
Benefits or Related Expenses 16,784,578 17,170,905 17,718,336 18,384,492 19,345,140 19,231,540 N/A 19,823,584 19,823,584 20,377,373 21,163,948 21,959,594
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 105,751 103,562 78,857 19,005 137,149 137,149 - 118,714 118,714 98,780 98,778 98,773
Capital Expenditure 1,753,506 1,812,057 1,848,880 1,874,904 1,934,015 1,877,015 69,225 1,835,184 1,904,409 1,917,828 1,925,951 1,960,764
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 720,464 739,742 765,568 755,731 769,998 769,998 683,794 82,490 766,284 757,325 750,546 753,736
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations#

19,665,126 20,095,868 20,654,627 21,306,784 22,486,815 22,316,215 1,025,815 21,960,573 22,986,388 23,520,383 24,307,059 25,132,538

Crown Revenue and Capital Receipts#

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 11,722 12,653 13,496 11,665 10,558 10,558 N/A 10,797 10,797 10,694 10,593 10,581
Capital Receipts 581,230 610,562 651,486 702,841 671,203 671,203 N/A 701,253 701,253 720,436 741,066 764,028

Total Crown Revenue and Capital Receipts#

592,952 623,215 664,982 714,506 681,761 681,761 N/A 712,050 712,050 731,130 751,659 774,609

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring#

Establishment of the Ministry for Vulnerable Children, Oranga Tamariki from 1 April 2017.

  2012/13
Adjustments
$000
2013/14
Adjustments
$000
2014/15
Adjustments
$000
2015/16
Adjustments
$000
2016/17
Final Budgeted
Adjustments
$000
2016/17
Estimated
Actual
Adjustments
$000

Appropriations#

           
Output Expenses (756,391) (771,320) (799,526) (806,682) (690,050) (690,050)
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - (21,128) (21,128)
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses 90,786 91,123 88,899 87,651 83,201 83,201
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations#

(665,605)#

(680,197)#

(710,627)#

(719,031)#

(627,977)#

(627,977)#

Crown Revenue and Capital Receipts#

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts#

- - - - - -

Establishment of Vote Social Housing from 1 July 2017.

  2012/13
Adjustments
$000
2013/14
Adjustments
$000
2014/15
Adjustments
$000
2015/16
Adjustments
$000
2016/17
Final Budgeted
Adjustments
$000
2016/17
Estimated
Actual
Adjustments
$000

Appropriations#

           
Output Expenses - - - (2,693) (10,445) (10,445)
Benefits or Related Expenses (1,177,315) (1,145,875) (1,128,850) (1,163,674) (1,146,156) (1,128,656)
Borrowing Expenses - - - - - -
Other Expenses - - - (664) - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses (610,846) (660,012) (723,591) (783,257) (921,876) (921,876)
Other Expenses - - - (1,280) (56,080) (56,080)
Capital Expenditure - - - - - -

Total Appropriations#

(1,788,161)#

(1,805,887)#

(1,852,441)#

(1,951,568)#

(2,134,557)#

(2,117,057)#

Crown Revenue and Capital Receipts#

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts#

- - - - - -

Transfer of the Departmental Output Expense, Designing and Implementing Social Investment from Vote Social Development to Vote State Services from 1 July 2017.

  2012/13
Adjustments
$000
2013/14
Adjustments
$000
2014/15
Adjustments
$000
2015/16
Adjustments
$000
2016/17
Final Budgeted
Adjustments
$000
2016/17
Estimated
Actual
Adjustments
$000

Appropriations#

           
Output Expenses - - - (1,518) (9,018) (9,018)
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations#

-

-#

-#

(1,518)#

(9,018)#

(9,018)#

Crown Revenue and Capital Receipts#

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts#

- - - - - -

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

Total Departmental and Non-Departmental Expenses#

Total Departmental and Non-Departmental Expenses
The Trends in total voted and actual expenses and capital expenditure chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 3 series: Actual covering the 2012 2013 to 2016 2017 Financial Year, Budget covering the 2012 2013 to 2017 2018 Financial Year, and Estimated covering the 2018 2019 to 2020 2021 Financial Year. The values for the Actual series are: 2012 2013 19654.538 million, 2013 2014 20108.528 million, 2014 2015 20654.627 million, 2015 2016 21301.949 million, 2016 2017 22391.142 million. The values for the Budget series are: 2012 2013 19823.960 million, 2013 2014 20353.897 million, 2014 2015 20878.977 million, 2015 2016 21609.833 million, 2016 2017 22561.742 million, 2017 2018 22978.032 million. The values for the Estimated series are: 2018 2019 23512.027 million, 2019 2020 24298.603 million, 2020 2021 25130.798 million.
Source: Ministry of Social Development

The movements in Departmental and Non-departmental appropriations in Vote Social Development, which are detailed above, are largely driven by increases in Benefits or Related Expenses, in particular, New Zealand Superannuation.

Departmental Output Expenses#

Departmental Output Expenses
The Trends in Departmental output expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2012 2013  Actual 806.402 million, 2013 2014  Actual 805.212 million, 2014 2015  Actual 832.844 million, 2015 2016  Actual 846.819 million, 2016 2017  Est. Actual 891.186 million, 2017 2018  Budget 948.867 million, 2018 2019  Estimated 935.584 million, 2019 2020  Estimated 930.935 million, 2020 2021  Estimated 931.676 million.
Source: Ministry of Social Development

Departmental output expenses increases steadily from 2012/13 before reaching a peak in 2017/18. The following are the key impacts on the trend:

  • on-going funding from 2014/15 for a package of core employment services to achieve outcomes for high-liability clients to improve employment outcomes $25 million.
  • on-going funding in 2015/16 for children living in material hardship $8 million
  • on-going funding in 2016/17 for Achieving Better Public Service Result Area 1 $15 million, extending the Youth Service to 18 and 19 year-olds $10 million and Ensuring the safety of our employees $7 million
  • on-going funding in 2017/18 for increased remuneration costs and increasing costs of current services $9 million and intensive client support extension $7 million. One-off funding for ensuring the safety and security of employees $4 million.

The impact of efficiency savings and the realisation of simplification benefits sees the overall trend decreasing from 2018/19 onwards.

Non-Departmental Output Expenses#

Non-Departmental Output Expenses
The Trends in Non-departmental output expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2012 2013  Actual 186.918 million, 2013 2014  Actual 191.336 million, 2014 2015  Actual 175.710 million, 2015 2016  Actual 176.729 million, 2016 2017  Est. Actual 177.044 million, 2017 2018  Budget 182.458 million, 2018 2019  Estimated 182.462 million, 2019 2020  Estimated 178.991 million, 2020 2021  Estimated 179.991 million.
Source: Ministry of Social Development

Non-departmental output expenses has had a steady trend in funding from 2012/13 onwards.

Non-Departmental Other Expenses#

Non-Departmental Other Expenses
The Trends in non-departmental other expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actual and its values are: 2012 2013  Actual 99.571 million, 2013 2014  Actual 84.523 million, 2014 2015  Actual 78.857 million, 2015 2016  Actual 19.005 million, 2016 2017  Est. Actual 193.229 million, 2017 2018  Budget 118.714 million, 2018 2019  Estimated 98.780 million, 2019 2020  Estimated 98.778 million, 2020 2021  Estimated 98.773 million.
Source: Ministry of Social Development

The fluctuating trend for Non-departmental Other Expenses is due to changing levels of debt write-downs from 2012/13 to 2016/17. Debt write-downs is impacted by both changing levels of outstanding social benefit debt and the interest rates used to calculate the debt write-down provision. The trend stabilises from 2018/19 onwards.

Non-Departmental Capital Expenditure#

Non-Departmental Capital Expenditure
The Trends in Non-departmental capital expenditure chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actuals and its values are: 2012 2013  Actual 1709.993 million, 2013 2014  Actual 1745.998 million, 2014 2015  Actual 1757.945 million, 2015 2016  Actual 1762.590 million, 2016 2017  Est. Actual 1773.217 million, 2017 2018  Budget 1835.184 million, 2018 2019  Estimated 1846.166 million, 2019 2020  Estimated 1860.526 million, 2020 2021  Estimated 1885.940 million.
Source: Ministry of Social Development

The majority (about 90%) of Non-departmental capital expenditure is for Student Loans. Most expenditure (about 63%) occurs in the first four months of each calendar year when course fees are paid. Expenditure reduced in 2012/13 as economic conditions improved, thereafter expenditure increased until 2014/15 before easing over the following two years. Expenditure is expected to increase over the next four years; driven by a higher loan amount per borrower as course fees and living costs increase.

The Recoverable Assistance item makes up the remainder of Non-departmental capital expenditure. Recoverable Assistance expenditure reduced between 2012/13 and 2014/15 before rising in the latter part of 2015/16 in line with increased demand of assistance. This trend continued into 2017 and expenditure is expected to grow from $184 million in 2016/17 to $203 million in 2017/18 and then remain near that level until 2020/21.

Non-Departmental Benefits or Related Expenses
The Trends in Non-departmental benefits or related expenses chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actuals and its values are: 2012 2013  Actual 16808.141 million, 2013 2014  Actual 17215.400 million, 2014 2015  Actual 17718.336 million, 2015 2016  Actual 18384.492 million, 2016 2017  Est. Actual 19231.540 million, 2017 2018  Budget 19823.584 million, 2018 2019  Estimated 20377.373 million, 2019 2020  Estimated 21163.948 million, 2020 2021  Estimated 21959.594 million.
Source: Ministry of Social Development

Expenditure on Vote Social Development Benefits or Related Expenses (BoRE) increased by $2,447 million; from $16,785 million in 2012/13 to an estimated $19,232 million in 2016/17. This increase in expenditure was largely caused by rising expenditure on New Zealand Superannuation, which increased by $2,809 million over the period. New Zealand Superannuation accounts for over 60% of total BoRE expenditure, and this proportion has risen from 61% in 2012/13 to 68% in 2016/17. Spending on New Zealand Superannuation as a proportion of total BoRE spending is expected to rise to 73% by 2020/21.

Between 2012/13 and 2016/17 combined expenditure on main benefits (Jobseeker Support and Emergency Benefit, Sole Parent Support and Supported Living Payment) declined as economic conditions improved.

Over the period 2016/17 to 2020/21, spending is expected to increase by $2,881 million for New Zealand Superannuation and to decrease by $172 million for total BoRE excluding New Zealand Superannuation. The main drivers of expected growth in total BoRE spending between 2016/17 and 2020/21 are indexation (cumulative inflation adjustments and adjustments for growth in average wages made each April), the number of recipients and secondary impacts from the Family Incomes Package. Note that the number of recipients impact is dominated by growth in the number of New Zealand Superannuation recipients.

New Zealand Superannuation#

New Zealand Superannuation
The Trends in New Zealand Superannuation chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. The first series is Actuals and its values are: 2012 2013  Actual 10234.977 million, 2013 2014  Actual 10913.103 million, 2014 2015  Actual 11591.026 million, 2015 2016  Actual 12266.832 million, 2016 2017  Est. Actual 13043.729 million, 2017 2018  Budget 13670.779 million, 2018 2019  Estimated 14356.816 million, 2019 2020  Estimated 15163.578 million, 2020 2021  Estimated 15924.464 million.
Source: Ministry of Social Development

Annual expenditure increased by $2,032 million from $10,235 million in 2012/13 to $12,267 million in 2015/16 and it is expected to be $13,044 million in 2016/17. Expenditure will continue rising to reach $15,924 million in 2020/21. Annual inflation adjustments and adjustments for growth in average wages typically account for between 40% and 50% of total annual changes in spending on New Zealand Superannuation, with the remainder being growth in the number of recipients.

The number of New Zealand Superannuation recipients grew by 13% (or about 78,300 recipients) between 2012/13 and 2015/16. Annual growth in eligible recipients accelerated in line with the post-World War II increase in births and peaked in 2012/13. The number of recipients is expected to continue to grow, with the rate of growth increasing until 2018/19, then slowing in 2019/20 and 2020/21, reaching 823,700 in 2020/21.

Over the full nine year period, annual expenditure is expected to increase by nearly $5,689 million (or 56%); this reflects both the number of recipients being expected to increase by 211,300 (or 35%), as well as accumulated inflation and wage adjustments.

Jobseeker Support and Emergency Benefit#

Jobseeker Support and Emergency Benefit
The Trends in Jobseeker Support and emergency Benefit chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 1 series: Actuals covering the 2013 2014  Actual to 2020 2021  Estimated Financial Year. The values for the Actuals series are: 2013 2014  Actual 1691.007 million, 2014 2015  Actual 1683.877 million, 2015 2016  Actual 1671.316 million, 2016 2017  Est. Actual 1694.839 million, 2017 2018  Budget 1662.932 million, 2018 2019  Estimated 1598.756 million, 2019 2020  Estimated 1528.939 million, 2020 2021  Estimated 1520.046 million.
Source: Ministry of Social Development

Expenditure for this appropriation tends to follow economic conditions, and has been trending down in line with unemployment for the past several years, during which time the number of recipients fell from 138,000 in 2013/14 to 130,200 in 2015/16.

Expenditure for this appropriation is expected to fall from $1,695 million in 2016/17 to $1,520 million in 2020/21, mainly reflecting an expected decline in the number of recipients, from an average of 130,500 in 2016/17 to an average of 110,000 by 2020/21 as economic conditions improve.

Sole Parent Support#

Sole Parent Support
The Trends in Sole Parent Support chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 1 series: Actuals covering the 2013 2014  Actual to 2020 2021  Estimated Financial Year. The values for the Actuals series are: 2013 2014  Actual 1221.895 million, 2014 2015  Actual 1186.493 million, 2015 2016  Actual 1152.990 million, 2016 2017  Est. Actual 1163.696 million, 2017 2018  Budget 1116.799 million, 2018 2019  Estimated 1097.918 million, 2019 2020  Estimated 1110.892 million, 2020 2021  Estimated 1119.623 million.
Source: Ministry of Social Development

Sole Parent Support recipient numbers fell by over 10,500 people between 2013/14 and 2015/16 to an average of 67,500. This reduction was not fully reflected in expenditure as sole parent rates increased according to cost of living adjustments each April and by a further $25 per week in April 2016 under the Children Living in Material Hardship Package.

Expenditure for this appropriation is expected to fall from $1,164 million in 2016/17 to $1,120 million in 2020/21, mainly reflecting a decline in the number of recipients from 63,900 in 2016/17 to 59,300 in 2020/21. The two principal causes of the decline in recipient numbers are expected improvements in the labour market, and a decrease in the teenage birth rate. Lower expenditure from the decrease in the number of recipients is partly offset by inflation adjustments.

Supported Living Payment#

Supported Living Payment
The Trends in Supported Living Payment chart is a Bar chart. Sourced from Ministry of Social Development. The X axis shows Financial Year; The Y axis shows millions of dollars. There are 1 series: Actuals covering the 2013 2014  Actual to 2020 2021  Estimated Financial Year. The values for the Actuals series are: 2013 2014  Actual 1421.910 million, 2014 2015  Actual 1514.559 million, 2015 2016  Actual 1523.016 million, 2016 2017  Est. Actual 1529.520 million, 2017 2018  Budget 1530.887 million, 2018 2019  Estimated 1538.191 million, 2019 2020  Estimated 1558.308 million, 2020 2021  Estimated 1571.350 million.
Source: Ministry of Social Development

Supported Living Payment expenditure has increased in line with the number of recipients and cost of living adjustments. Between 2013/14 and 2015/16 the number of recipients increased by nearly 1,200 to 97,600.

Expenditure for this appropriation is expected to increase from $1,530 million in 2016/17 to $1,571 million in 2020/21, mainly reflecting inflation adjustments. This is partly offset by an expected decrease in the number of recipients from 97,200 in 2016/17 to 96,000 in 2020/21, mainly reflecting increased transfers from Supported Living Payment to New Zealand Superannuation.

1.4 - Reconciliation of Changes in Appropriation Structure#

Establishment of the Community Support Services MCA from 1 July 2017 to fund community-based services and programmes that remain with the Ministry of Social Development following the establishment of the Ministry for Vulnerable Children, Oranga Tamariki. Most of the amounts of the existing 2016/17 appropriations were transferred to Vote Vulnerable Children, Oranga Tamariki on 1 April 2017.

 

    Old Structure New Structure
2016/17 Appropriations
in the 2016/17 Structure
2016/17
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2016/17 Appropriations
in the 2017/18 Structure
2016/17
(Restated)
$000
2017/18
$000

Vote Social Development#

           

Departmental Output Expenses#

           
Investing in Communities 39,163 Transferred to Community Support Services MCA (15,466)   23,697 -

Non-Departmental Output Expenses#

           
Counselling and Rehabilitation Services 16,879 Transferred to Community Support Services MCA (3,588)   13,291 -
Education and Prevention Services 9,279 Transferred to Community Support Services MCA (1,707)   7,572 -
Family Wellbeing Services 84,913 Transferred to Community Support Services MCA (11,248)   73,665 -
Strong Families and Connected Communities 109,144 Transferred to Community Support Services MCA (49,461)   59,683 -
       

Multi-category Expenses and Capital Expenditure#

   
       

Community Support Services MCA#

   
       

Departmental Output Expenses#

   
    Transferred from Investing in Communities 15,466 Developing and Managing Community Services 15,466 19,083
       

Non-Departmental Output Expenses#

   
    Transferred from Counselling and Rehabilitation Services 105 Community Support and Advice 24,720 26,156
    Transferred from Family Wellbeing Services 1,469      
    Transferred from Strong Families and Connected Communities 23,146      
    Transferred from Strong Families and Connected Communities 2,990 Participation and Support Services for Seniors 2,990 2,990
    Transferred from Counselling and Rehabilitation Services 3,483 Supporting Victims and Perpetrators of Family and Sexual Violence 38,294 44,573
    Transferred from Education and Prevention Services 1,707      
    Transferred from Family Wellbeing Services 9,779      
    Transferred from Strong Families and Connected Communities 23,325      
Total changes in appropriations 259,378   -   259,378 92,802

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Administering Support for the Mental Health and Employment Social Bond Pilot (M63)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Administering Support for the Mental Health and Employment Social Bond Pilot (M63)#

This appropriation is limited to the costs of administering and providing business support to the Mental Health and Employment Social Bond Pilot.

Commences: 01 February 2017

Expires: 30 June 2021
Original Appropriation 340
Adjustments to 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 340
Actual to 2015/16 Year End -
Estimated Actual for 2016/17 40
Estimated Actual for 2017/18 40
Estimated Appropriation Remaining 260

Revenue#

  Budget
$000
Revenue from the Crown to end of 2017/18 80
Revenue from Others to end of 2017/18 -
Total Revenue 80

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve efficient and effective administrative support to the Mental Health and Employment Social Bond pilot.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

All payments are administered according to social bond standards/agreements.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Social Bond: Mental Health and Employment 2016/17 40 40 40 140 80

Reasons for Change in Appropriation#

This is a new multi-year appropriation established in 2016/17.

Claims Resolution (M63)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Claims Resolution (M63)#

This appropriation is limited to resolving claims of abuse and neglect for people who were under the supervision or in the care, custody or guardianship of the state or who had come to the notice of the state prior to 2008.

Commences: 01 April 2017

Expires: 30 June 2021
Original Appropriation 25,049
Adjustments to 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 25,049
Actual to 2015/16 Year End -
Estimated Actual for 2016/17 2,000
Estimated Actual for 2017/18 7,683
Estimated Appropriation Remaining 15,366

Revenue#

  Budget
$000
Revenue from the Crown to end of 2017/18 9,683
Revenue from Others to end of 2017/18 -
Total Revenue 9,683

Comparators for Restructured Appropriation#

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Departmental Output Expense: Care and Protection Services 2,000 2,000 -
Departmental Output Expense: Claims Resolution 2,000 2,000 -
Total 4,000 4,000 7,683

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve resolution for victims of abuse and neglect who were in the care, custody or guardianship of the State.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The number of claims assessed by 30 June 2020 will be no less than

1,000 1,000 1,000

The percentage of claims assessed by 30 June 2020 that will have an offer made by 30 June 2021 will be

100% 100% 100%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Historic and Contemporary Claims Resolution 2017/18 - 3,683 3,683 3,683 -
Vote Vulnerable Children, Oranga Tamariki appropriation structure and changes to Vote Social Development 2016/17 2,000 4,000 4,000 4,000 -

Reasons for Change in Appropriation#

This multi-year appropriation has increased compared to the restructured appropriation due to new funding in 2017/18 for Historic and Contemporary Claims Resolution: $3.683 million.

Corporate Support Services (M63)#

Scope of Appropriation#

This appropriation is limited to the provision of corporate support services to other agencies.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 25,000 25,000 105,500
Revenue from the Crown - - -
Revenue from Others 25,000 25,000 105,500

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve quality and efficient corporate support services.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Services meet the standards and timeframes agreed between the Ministry of Social Development and the Ministry for Vulnerable Children, Oranga Tamariki.

Achieved Achieved Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Vote Vulnerable Children, Oranga Tamariki appropriation structure and changes to Vote Social Development 2016/17 30,500 105,500 105,500 105,500 105,500

Reasons for Change in Appropriation#

This is a newly established appropriation in 2016/17 with effect from 1 April 2017.

Data, Analytics and Evidence Services (M63)#

Scope of Appropriation#

This appropriation is limited to providing data, analytics and evidence services to better inform government decision-making.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12,510 12,510 9,940
Revenue from the Crown 12,510 12,510 9,940
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an increase in the use and value of the data and information assets of the Ministry and other government agencies to better target services for New Zealanders.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of data infrastructure and tools, developed and delivered against an agreed work programme in accordance with organisational priorities will be no less than

New measure for 2017/18 New measure for 2017/18 90%

Data analytics strategy and plan developed to increase the use and value of data and information assets of the Ministry to better target services for New Zealanders.

New measure for 2017/18 New measure for 2017/18 Achieved

The percentage of products and services delivered to clients within the agreed timeframes will be no less than

New measure for 2017/18 New measure for 2017/18 90%

iMSD (see Note 1) products and services inform departmental decision making on services to be provided by the Ministry of Social Development as measured by the proportion of internal clients surveyed who rated the products and data information services 'good' or better will be no less than

New measure for 2017/18 New measure for 2017/18 90%

The percentage of products and services produced that consistently reflect the Quality Framework principles (see Note 2) will be no less than

80% 80% 80%

The percentage of publications released on the Ministry of Social Development external website in accordance with the agreed release timetable, updated quarterly, will be

New measure for 2017/18 New measure for 2017/18 100%

Total Aggregate Social Development BORE spend accuracy on current year mid-point estimates will be within the range of

+/-2% +/-2% +/-2%

Note 1 - Insights MSD or iMSD is a business group within the Ministry of Social Development that provides data, analytics, evidence and research services. Its purpose is to maximise the value of the Ministry's investment in data and analytics capability thereby improving decision making from policy to operations which will drive better outcomes for our clients.

Note 2 - The Quality Framework principles are: well commissioned, methodologically sound, client focused, build knowledge and capability, and ethical.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 98 89 89 88
Vote Vulnerable Children, Oranga Tamariki appropriation structure and changes to Vote Social Development 2016/17 (660) (2,855) (2,855) (2,855) (2,855)
Data and Analytics Contingency - Tranche Two Investment Proposals 2016/17 326 951 1,477 1,405 -
Establish Data, Analytics and Evidence Services & Policy Advice 2015/16 11,420 11,420 11,420 11,420 11,420

Reasons for Change in Appropriation#

This appropriation has decreased by $2.570 million to $9.940 million in 2017/18. This is mainly due to:

  • a fiscally neutral transfer in from other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $1.750 million
  • additional funding transfer to Vote Vulnerable Children, Oranga Tamariki in 2017/18: $2.195 million.

The above is offset by:

  • new funding for Analytics to the front line in 2017/18: $326,000
  • drawn down of Data and Analytics Contingency - Tranche Two Investment Proposals in 2017/18: $951,000
  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $98,000.

Income Support and Assistance to Seniors (M63)#

Scope of Appropriation#

This appropriation is limited to paying New Zealand Superannuation and social security entitlements to older persons, providing advice to them, administering international social security agreements relating to non-superannuitants, and assessing financial entitlement to Residential Care Subsidies.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 43,781 43,781 37,150
Revenue from the Crown 43,781 43,781 37,150
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the accurate and timely assessment and payment of entitlements to older people.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of entitlement assessments for payment of entitlements to older people completed accurately will be no less than

90% 94.7% 90%

The percentage of entitlement assessments for payment of entitlements to older people finalised within standard timeframes (see Note 1) will be no less than

90% 90% 90%

Note 1 - This combines timeliness measures for all activities in this output expense. Standard timeframes for each component are as follows:

  • Six working days for New Zealand Superannuation and Emergency Benefit (for people over 65 years of age) entitlement assessments completed for payment in New Zealand.
  • 20 working days for New Zealand Superannuation entitlement assessments completed for payments overseas and other New Zealand entitlements paid overseas.
  • 20 working days for Residential Subsidy entitlement assessments.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 420 376 377 374
Employee Safety and Security 2017/18 - 212 - - -
Ensuring the Safety of Our Employees 2016/17 564 387 70 70 70
Allocation of Baseline Contributions Across Agencies for the Budget 2015 System Package 2015/16 (120) (120) (120) (85) (85)
Portability of New Zealand Superannuation to Niue, Tokelau and the Cook Islands 2014/15 66 66 66 66 66

Reasons for Change in Appropriation#

This appropriation has decreased by $6.631 million to $37.150 million in 2017/18. This is mainly due to:

  • an increased one-off fiscally neutral transfer in 2016/17 from other appropriations in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $7.050 million
  • change in capital charge rate from 8% to 6%: $36,000.

The above is offset by:

  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $420,000
  • additional funding for Employee Safety and Security in 2017/18: $35,000.

Investigation of Overpayments and Fraudulent Payments and Collection of Overpayments (M63)#

Scope of Appropriation#

This appropriation is limited to services to minimise errors, fraud and abuse of the benefit system and Income Related Rent, and services to manage the collection of overpayments, recoverable assistance loans and other balances owed by former clients.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 49,209 49,209 49,808
Revenue from the Crown 49,209 49,209 49,808
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a welfare system that operates with fairness and integrity by ensuring that the right people receive the right entitlements and assistance, and identifies and resolves overpayments.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of investigations that result in an entitlement change (see Note 1) or identification of an overpayment will be no less than

50% 59.5% 50%

The percentage of successful prosecutions concluded will be no less than

95% 96.1% 95%

The percentage of non-current debt paid in full, or under arrangement to pay, within four months will be no less than

70% 71.2% 70%

Note 1 - This includes the increase, reduction or cessation of entitlement to benefit as a direct result of the investigation.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 563 504 507 502
Employee Safety and Security 2017/18 - 284 - - -
Ensuring the Safety of Our Employees 2016/17 637 437 79 79 79
Allocation of Baseline Contributions Across Agencies for the Budget 2015 System Package 2015/16 (160) (160) (160) (113) (113)

Reasons for Change in Appropriation#

This appropriation has increased by $599,000 to $49.808 million in 2017/18. This is mainly due to new funding for Ministry of Social Development - Maintaining Services.

Management of Service Cards (M63)#

Scope of Appropriation#

This appropriation is limited to assessing entitlement, issuing cards, and promoting and distributing information about the Community Services, SuperGold and Veteran SuperGold cards, including enlisting business partners to provide discounts to SuperGold cardholders.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,879 4,879 6,705
Revenue from the Crown 4,879 4,879 6,705
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve financial assistance to low income New Zealanders and older people by the accurate and timely assessment and issuing of discount service cards.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of card entitlement assessments completed accurately will be no less than

90% 96.7% 95%

The percentage of card entitlement assessments completed within five working days will be no less than

90% 93% 90%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 76 69 69 68

Reasons for Change in Appropriation#

This appropriation has increased by $1.826 million to $6.705 million in 2017/18. This is mainly due to:

  • a fiscally neutral transfer to other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $1.750 million
  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $76,000.

Management of Student Loans (M57)#

Scope of Appropriation#

This appropriation is limited to assessing, paying and reviewing entitlements for student loans and providing guidance to students making financial and study decisions.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,545 15,545 15,218
Revenue from the Crown 15,545 15,545 15,218
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve reduced financial barriers to tertiary study by providing accurate and timely assessment and payment of student loans.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of entitlement assessments for a Student Loan completed accurately will be no less than

90% 98.8% 90%

The percentage of initial entitlement assessments for a Student Loan completed within five working days will be no less than

90% 99.7% 95%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 173 156 157 155
International Connections For New Zealanders 2016/17 500 - - - -

Reasons for Change in Appropriation#

This appropriation has decreased by $327,000 to $15.218 million in 2017/18. This is due to:

  • one-off funding for International Connections for New Zealanders in 2016/17: $500,000.

The above is offset by:

  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $173,000.

Management of Student Support (M63)#

Scope of Appropriation#

This appropriation is limited to managing non-recoverable financial support to students, involving assessing and paying Student Allowances and other income support to eligible secondary and tertiary students.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,356 17,356 16,459
Revenue from the Crown 17,356 17,356 16,459
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve reduced financial barriers to tertiary study by providing accurate and timely assessment and payment of non-recoverable financial support for students.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of entitlement assessments for a Student Allowance completed accurately will be no less than

90% 95.5% 90%

The percentage of initial entitlement assessments for a Student Allowance completed within five working days will be no less than

90% 100% 95%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 187 169 169 168
Next Steps to Implement the Sole Parent Tertiary - Welfare Interface Package 2014/15 621 837 826 826 826

Reasons for Change in Appropriation#

This appropriation has decreased by $897,000 to $16.459 million in 2017/18. This is mainly due to a fiscally neutral transfer in from other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $1.300 million.

The above is offset by:

  • increased funding for Next Steps to Implement the Sole Parent Tertiary - Welfare Interface Package: $216,000
  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $187,000.

Place-based Initiatives - Tairawhiti Local Leadership (M63)#

Scope of Appropriation#

This appropriation is limited to the provision of operational support for the place-based approach being led by the Tairawhiti Social Impact Collective.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 205 205 225
Revenue from the Crown 205 205 225
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a new way of working together in Tairawhiti in order to achieve an improvement in the outcomes of at-risk children, young people and their families.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Provide on-going local support arrangements by 30 June 2018

New measure for 2017/18 New measure for 2017/18 Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Place-based Social Investment in Tairawhiti - Next Steps 2016/17 205 225 - - -

Reasons for Change in Appropriation#

This appropriation has increased by $20,000 to $225,000 in 2017/18 due to extra funding for inflation.

Planning, Correspondence and Monitoring (M63)#

Scope of Appropriation#

This appropriation is limited to providing planning, reporting, monitoring and statutory appointment advice (other than policy decision-making advice) on Crown entities, and correspondence services to support Ministers to discharge their portfolio responsibilities.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 6,344 6,344 4,494
Revenue from the Crown 6,344 6,344 4,494
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve effective and efficient ministerial, advisory and administrative services to support Ministers to discharge their portfolio responsibilities.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Crown Entity Monitoring#

     

The percentage of occasions on which advice is given to the Ministers on Crown entity and Statutory Tribunal appointments within agreed timeframes will be between

95-100% 100% 95-100%

The percentage of all reports (see Note 1) provided to the Minister that are factually accurate, meet all legislative requirements, and contain no avoidable errors will be between

95-100% 100% 95-100%

The percentage of occasions on which advice to Ministers on draft accountability documents for Crown entities for the next financial year is provided within agreed timeframes will be no less than

100% 100% 100%

Ministerial and Executive Services#

     

The percentage of ministerial correspondence replies completed within 20 working days of receipt by the Ministry, unless otherwise agreed, will be between

95-100% 95% 95-100%

The percentage of written Parliamentary question replies provided to the Minister's Office so that answers can meet the timeframe set in Parliamentary Standing Orders, will be between

95-100% 99% 95-100%

The percentage of ministerial Official Information Act request replies completed within the statutory timeframe (or unless otherwise agreed), will be between

95-100% 100% 95-100%

Note 1 - Reports include policy advice, aide memoires, briefings and updates to support the Minister's decision-making responsibilities.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 51 46 46 46
Vote Vulnerable Children, Oranga Tamariki appropriation structure and changes to Vote Social Development 2016/17 (470) (1,111) (1,111) (1,111) (1,111)

Reasons for Change in Appropriation#

This appropriation has decreased by $1.850 million to $4.494 million in 2017/18. This is due to:

  • a fiscally neutral transfer in from other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $1.260 million
  • funding transfer to Vote Vulnerable Children, Oranga Tamariki: $1.111 million.

The above is offset by:

  • a reprioritisation of baselines to meet changes in cost drivers in 2017/18: $470,000
  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $51,000.

Policy Advice (M63)#

Scope of Appropriation#

This appropriation is limited to providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government social policy and related matters, including social sector issues.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 20,167 20,167 14,393
Revenue from the Crown 20,167 20,167 14,393
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve high quality policy advice to support decision-making.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction rating (see Note 1) given by Ministers (see Note 2) for the quality and timeliness of policy advice, as per the Common Satisfaction Survey will be at least

8.0 8.0 8.0

The technical quality of policy advice papers assessed by a survey with a methodological robustness of 85% (see Note 3) will be no less than

75% 75% 75%

The total cost (see Note 4) per hour per person of producing outputs will be between

$130-$140 $130-$140 $130-$140

Note 1 - The Common Satisfaction Survey rating measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1-10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 2 - The Ministers who receive services are the Minister for Social Development, the Minister for Social Housing, the Minister for Youth, the Minister for Seniors, the Minister for Disability Issues and the Associate Minister for Social Housing.

Note 3 - This measure is a compulsory policy advice measure for all public sector agencies.

Note 4 - The total cost of an hour of professional staff time devoted to both policy advice and other policy unit outputs. Total cost includes the cost of labour, overheads, support staff, direct costs and outsourced work to support output production.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 184 164 164 162
Social Sector Leadership: Delivering Better Results 2017/18 - (1,808) (1,808) (1,808) (1,808)
Developing an Integrated Social Investment and Purchasing Model for Social Housing 2016/17 527 1,240 999 940 910
Vote Vulnerable Children, Oranga Tamariki appropriation structure and changes to Vote Social Development 2016/17 (955) (4,100) (4,100) (4,100) (4,100)
Social Housing Reform Programme 2015/16 1,387 869 869 869 869

Reasons for Change in Appropriation#

This appropriation has decreased by $5.774 million to $14.393 million in 2017/18. This is mainly due to:

  • increased funding transferred to Vote Vulnerable Children, Oranga Tamariki in 2017/18: $3.145 million
  • a fiscally neutral transfer in from other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $1.200 million
  • the Social Sector Strategy team transferring to the State Services Commission: $1.808 million
  • decreased funding for Social Housing Reform Programme in 2017/18: $518,000.

The above is offset by:

  • increased funding for Developing an Integrated Social Investment and Purchasing Model for Social Housing in 2017/18: $713,000
  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $184,000.

Processing of Veterans' Pensions (M75)#

Scope of Appropriation#

This appropriation is limited to the processing and administrative aspects of payment of Veterans' Pensions and related allowances .

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 588 588 443
Revenue from the Crown 588 588 443
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the accurate and timely assessment and payment of Veterans' Pensions and related allowances.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of Veterans' Pension entitlement assessments completed accurately will be no less than

90% 95.1% 90%

The percentage of Veterans' Pension entitlement assessments completed within timeframes (see Note 1) will be no less than

90% 93.7% 90%

Note 1 - Six working days for Veterans' Pension entitlement assessments for payment in New Zealand, and 20 working days for Veterans' Pension entitlement assessments for payment overseas.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 5 5 5 5

Reasons for Change in Appropriation#

This appropriation has decreased by $145,000 to $443,000 in 2017/18. This is due to a fiscally neutral transfer in from other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $150,000.

The above is offset by:

  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $5,000.

Promoting Positive Outcomes for Disabled People (M23)#

Scope of Appropriation#

This appropriation is limited to providing services to promote and monitor the implementation of the New Zealand Disability Strategy, to monitor and implement the United Nations Convention on the Rights of Persons with Disabilities, and to provide information to Ministers on disability matters.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,045 4,045 3,716
Revenue from the Crown 4,045 4,045 3,716
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the increased participation and contribution of disabled people by providing advice and support to the Minister for Disability Issues and by co-ordinating and monitoring against the Convention on the Rights of Persons with Disabilities, the New Zealand Disability Strategy and the Disability Acton Plan.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The quality rating given to a monitoring report by disabled people on their rights under the United Nations Convention on the Rights of Persons with Disabilities (see Note 1) is of high quality will be no less than

7.0 7.0 7.0

The satisfaction rating (see Note 2) given by the Minister for Disability Issues for the quality of the annual report is no less than

7.0 7.0 7.0

The percentage of stakeholders who report being 'satisfied' or 'very satisfied' with the level of engagement of the Office for Disability Issues

75% 75% 75%

Note 1 - Based on a rating system developed by the Office for Disability Issues that assess the elements of a good quality report, such as sound methodology and being easy to understand. This is measured on a scale from 1-10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 2 - The Satisfaction Survey rating measures the Minister for Disability Issues' satisfaction with the quality of the annual report providing an accurate picture of progress against agreed priorities, where 1 means unsatisfied and 10 means extremely satisfied.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 31 28 28 28
Promotion and Maintenance of New Zealand Sign Language 2014/15 1,500 1,500 1,500 1,500 1,500
Monitoring by Disabled People of Their Rights 2013/14 275 275 275 275 275

Reasons for Change in Appropriation#

This appropriation has decreased by $329,000 to $3.716 million in 2017/18. This is due to:

  • time limited funding transferred from the Ministry of Health ending in 2016/17: $1.360 million.

The above is offset by:

  • new funding for the Be Accessible (Delivering Accessible Tourism) programme of work: $1 million
  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $31,000.

Promoting Positive Outcomes for Seniors (M61)#

Scope of Appropriation#

This appropriation is limited to providing information and facilitation to protect the rights and interests of older people, to promote local community involvement in senior issues, and ministerial services.

Expenses and Revenue#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,010 1,010 1,022
Revenue from the Crown 1,010 1,010 1,022
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve positive outcomes for seniors through supporting their inclusion in a society where older people can age positively, are highly valued and recognised as an integral part of families and communities, and by supporting greater advocacy of their issues by Ministers.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The number of page views on SuperSeniors webpages carrying information on Elder Abuse Response services will be no less than

New measure for 2017/18 New measure for 2017/18 100,000

The number of unique email addresses that are subscribed to the SuperSeniors Newsletter will be no less than

New measure for 2017/18 New measure for 2017/18 300,000

The percentage of stakeholders (see Note 1) who report being 'satisfied' or 'very satisfied' with the level of engagement of the Office for Seniors will be no less than

75% 75% 90%

Note 1 - Stakeholders are selected from the following groups: seniors, sector organisations and central and local government.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Ministry of Social Development - Maintaining Services 2017/18 - 12 10 11 10

Reasons for Change in Appropriation#

This appropriation has increased by $12,000 to $1.022 million in 2017/18. This is due to new funding for Ministry of Social Development - Maintaining Services.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Social Development - Capital Expenditure PLA (M63)#

Scope of Appropriation#

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Social Development, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 37,252 37,252 37,351
Intangibles 66,546 66,546 31,874
Other - - -

Total Appropriation#

103,798 103,798 69,225

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the replacement or upgrade of assets in support of the delivery of the Ministry's services.

How Performance will be Assessed and End of Year Reporting Requirements#

Expenditure is in accordance with the Ministry's long-term investment plan.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Reasons for Change in Appropriation#

This appropriation has decreased by $34.573 million to $69.225 million in 2017/18. This reflects the Ministry's revised capital programme of work due to the establishment of the Ministry for Vulnerable Children, Oranga Tamariki from 1 April 2017.

Capital Injections and Movements in Departmental Net Assets#

Ministry of Social Development#

Details of Net Asset Schedule 2016/17
Estimated Actual
$000
2017/18
Projected
$000
Explanation of Projected Movements in 2017/18
Opening Balance 327,242 177,056  
Capital Injections 9,483 7,101 Additional investment in MSD's capital base including critical core IT upgrades $6 million, Delivering Information to the Front Line from Data Analytics contingency $975,000, Social Sector Data Exchange initiative $126,000.
Capital Withdrawals (124,669) (126) Social Sector Data Exchange initiative to the State Services Commission $126,000.
Surplus to be Retained (Deficit Incurred) - -  
Other Movements (35,000) -  

Closing Balance#

177,056 184,031  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Children's Commissioner (M63)#

Scope of Appropriation#

This appropriation is limited to the provision of services from the Children's Commissioner including the discharge of the Commissioner's duties under the Children's Commissioner Act 2003, monitoring and reporting on services delivered under the Children, Young Persons, and Their Families Act, 1989, and the identification of aspects of law, policy and practice that might adversely affect children and the development and proposal of remedies.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,157 2,157 2,657

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an improvement in the wellbeing of children through the provision of independent advocacy for the interests of children, and independent monitoring and advice to Ministers about the services delivered to children under the Children, Young Persons, and Their Families Act 1989.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of key deliverables agreed with the Minister for Social Development in the Children's Commissioner's Statement of Performance Expectations completed to agreed standards (see Note 1) will be no less than

85% 100% 85%

The percentage of specified stakeholders (see Note 2) that agree that the Office's advocacy activities (see Note 3) contribute to improving the wellbeing of children will be no less than

80% 90% 80%

The percentage of monitoring report recommendations accepted by the Ministry for Vulnerable Children, Oranga Tamariki (see Note 4) as evidenced and in line with Ministry for Vulnerable Children, Oranga Tamariki policies and practices will be no less than (see Note 5)

90% 100% 90%

Note 1 - Agreed Standards are achievement of performance measures as set out in the Statement of Performance Expectations and the Memorandum of Understanding.

Note 2 - Stakeholders will be listed in the Memorandum of Understanding between the Office and the Minister for Social Development for the new financial year.

Note 3 - As evidenced by the results from an annual stakeholder survey of specified stakeholders who will be outlined in the Memorandum of Understanding with the Minister.

Note 4 - This performance measure is the same as that contained in the 2016/17 Estimates. It has been amended to reflect the Ministry for Vulnerable Children, Oranga Tamariki replacing Child, Youth and Family from 1 April 2017.

Note 5 - As evidenced in the minutes of meetings held between the Office of the Children's Commissioner and the Ministry for Vulnerable Children, Oranga Tamariki to confirm which monitoring recommendations are to be accepted.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Office of the Children's Commissioner in its Annual Report.

Service Providers#

The Office of the Children's Commissioner receives this funding with performance information reported in its Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Children's Commissioner - Statutory Advice and Increased Monitoring Coverage 2017/18 - 500 - - -

Reasons for Change in Appropriation#

This appropriation has increased by $500,000 to $2.657 million in 2017/18. This is due to new funding for statutory advice and increased monitoring coverage.

Community Participation Services (M63)#

Scope of Appropriation#

This appropriation is limited to the provision of services, resources, assistance and support to people so they can participate in and contribute to the wider community.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 82,631 82,631 81,160

Components of the Appropriation#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Enabling Good Lives 4,312 4,312 -
Participation of People with Disabilities in Communities 62,521 61,829 64,481
Vocational Services for Very High Needs School Leavers 15,798 16,490 16,679
Total 82,631 82,631 81,160

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an increase in opportunities for people to fully participate in their communities by enhancing the skills, knowledge and services available to them.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The number of disabled people supported to participate in their communities will be no fewer than

16,500 16,500 16,500

The number of disabled people placed or supported to remain in open paid employment will be no fewer than

5,800 5,800 5,800

Advocacy services provided in the Work and Income regions will be no fewer than

11 12 12

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Social Development in the Vote Social Development Non-Departmental Appropriations Report.

Service Providers#

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment
Idea Services Limited 24,161 24,161 24,089 30/06/2019
CCS Disability Action Inc 2,545 2,545 2,300 30/06/2019
Hohepa Services Limited 1,311 1,311 1,247 30/06/2019
SPAN Charitable Trust 917 917 917 30/06/2019
Spectrum Care Trust Board 842 842 796 30/06/2019
Other providers (approximately 104 providers with funds from $2,000 to $672,000) 52,855 52,855 51,811  
Total 82,631 82,631 81,160  

The table above presents the top five service providers with funding arrangements with Ministry of Social Development under the output as at 15 March 2017.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Enabling Good Lives - Funding transfer from Vote Health 2015/16 4,500 - - - -
Participation and Inclusion for Disabled People 2015/16 3,676 5,428 5,428 5,428 5,428

Reasons for Change in Appropriation#

This appropriation has decreased by $1.471 million to $81.160 million in 2017/18. This is due to:

  • time limited funding for Enabling Good Lives ceasing in 2016/17: $3.223 million.

The above is offset by:

  • increased funding for Participation and Inclusion for Disabled People in 2017/18: $1.752 million.

Families Commission (M63)#

Scope of Appropriation#

This appropriation is limited to the provision of services from the Families Commission to promote the wellbeing of a full range of New Zealand families and whanau through undertaking research and evidence gathering to build a transfer of knowledge to policymakers and purchasers and providers of services.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 14,092 14,092 12,639

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an improvement in the lives of New Zealand families and whanau as a result of the provision of research, evidence and capability enhancement to inform the development and implementation of social policies, programmes and services by government and community organisations.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of key deliverables agreed with the Minister for Social Development in the Families Commission's Statement of Performance Expectations completed to agreed standards (see Note 1) will be no less than

85% 85% 85%

The percentage of key stakeholders who agree that research and evidence provided by the Families Commission has informed their development and implementation of social policies, programmes and services will be no less than

70% 70% 70%

Note 1 - Agreed Standards are achievement of performance measures as set out in the Statement of Performance Expectations and the Memorandum of Understanding.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Families Commission in its Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Draw Down for the Growing Up in New Zealand study contract and related activities 2015/16 7,314 4,816 5,959 5,959 5,959
Revised contract for the Growing Up in New Zealand study 2016/17 (1,526) (481) (3,813) (5,109) (5,109)
Transfer of the responsibility for monitoring, research and evaluation including funding for the Growing Up in New Zealand Longitudinal Studies from Vote Social Development 2013/14 180 180 180 180 180

Reasons for Change in Appropriation#

This appropriation has decreased by $1.453 million to $12.639 million in 2017/18. This is due to:

  • a lower draw down from the contingency fund for managing the Growing Up in New Zealand study contract: $2.498 million.

The above is offset by:

  • an increase of $1.045 million in 2017/18 relating to the revised scope of the contract for the Growing Up in New Zealand study.

Mental Health and Employment Social Bond Pilot (M63)#

Scope of Appropriation and Expenses#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Mental Health and Employment Social Bond Pilot (M63)#

This appropriation is limited to the outcome payments incurred under the Mental Health and Employment Social Bond Pilot.

Commences: 01 February 2017

Expires: 30 June 2021
Original Appropriation 3,800
Adjustments to 2015/16 -
Adjustments for 2016/17 -
Adjusted Appropriation 3,800
Actual to 2015/16 Year End -
Estimated Actual for 2016/17 241
Estimated Actual for 2017/18 633
Estimated Appropriation Remaining 2,926

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve reduced welfare dependence and improved mental health outcomes.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The number of clients who receive services under the social bond pilot will be no less than (see Note 1)

100 100 1,700

Note 1 - The budget standard of 1,700 is the total number of participants for the five year period, being 340 for each fiscal year.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Social Development in the Vote Social Development Non-Departmental Appropriations Report.

Service Providers#

The funding is to be paid to APM Workcare Ltd to supply a range of employment services to people with mental health conditions.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Social Bond: Mental Health and Employment 2016/17 241 633 633 633 1,660

Reasons for Change in Appropriation#

This is a newly established multi-year appropriation in 2016/17.

Student Placement Services (M63)#

Scope of Appropriation#

This appropriation is limited to placement services for students for holiday and term employment.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,512 3,512 3,512

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve reduced financial barriers to tertiary study through the effective operation of the Student Job Search placement service so that more students are earning income through paid employment.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental output expense is less than $5 million.

Service Providers#

The funding is paid to Student Job Search for operation of the Student Job Search placement service.

Childcare Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to assistance for the costs of childcare that meets specific quality guidelines, where parents meet activity and income criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 205,345 197,345 197,320 200,260 204,378 206,882

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing financial support to assist caregivers and parents with childcare costs.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Childcare Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Children Living in Material Hardship 2015/16 31,484 32,088 32,822 32,822 32,822
Enhanced use of Authoritative Data 2015/16 2,793 4,656 4,656 4,656 4,656

Reasons for Change in Appropriation#

Expenditure on Childcare Assistance is expected to rise between 2016/17 and 2020/21 due to inflation adjustments to the payment rates and an expected increase in the number of recipients. Partly offsetting this is an expected decrease in the average payment rate per person (before inflation adjustments).

Conditions on Use of Appropriation#

Reference Conditions
Childcare Assistance includes the Childcare Subsidy and the Out of School Care and Recreation Subsidy (OSCAR subsidy). These are paid under section 61GA of the Social Security Act 1964 and the Social Security (Childcare Assistance) Regulations 2004 pursuant to section 132AC of the Social Security Act 1964 The Childcare Subsidy assists with pre-school costs for caregivers. The Subsidy covers children aged 0 to 4 years old, or 0 to 5 if a Child Disability Allowance is also payable. Childcare Subsidy is payable for up to 50 hours per week of attendance at an approved early childhood programme where a caregiver is engaged in an approved activity such as employment or training, has serious illness or disability or whose dependent child or children have a serious illness or disability, or up to 9 hours per week in most other cases. The Childcare Subsidy may be used in combination with Free Early Childhood Education for 3 and 4 year olds where hours exceed six per day or 20 per week. The Subsidy is a non-taxable income tested payment. The OSCAR subsidy assists with out-of-school care costs for caregivers to take up or remain in paid employment. OSCAR covers 5 to 13 year olds, and 5 to 17 if a Child Disability Allowance is also payable. OSCAR subsidy is available for approved before and after school care for up to 20 hours per week and up to 50 hours per week in approved school holiday programmes. The caregiver must be participating in an approved activity such as employment or training. The OSCAR subsidy is a non-taxable income-tested payment. There are three standard levels of Childcare and OSCAR subsidy, with the level depending on household income.
Early Learning Programme Assistance is paid under the Family Start and Early Start (Childcare Assistance) Programme pursuant to section 124(1)(d) of the Social Security Act 1964 Early Learning Programme Assistance is provided to families who are enrolled in selected Family Start or Early Start programmes. The rate provided is 20 hours per week for an eligible child under 30 months of age or 15 hours per week for an eligible child between 30 and 36 months of age. The Assistance is a non-taxable payment.
Guaranteed Childcare Assistance Payment is paid under the Guaranteed Childcare Assistance Payment Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Guaranteed Childcare Assistance Payment provides financial assistance towards the costs of early childhood education to help young parents who are receiving young parent payments, or who are spouses or partners of specified beneficiaries, to comply with their youth activity obligations, and young parents who are not beneficiaries to return to, or remain in, courses of secondary instruction.

Disability Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to the Disability Allowance for people with disability costs and the Child Disability Allowance to the caregivers of children with a serious disability, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 380,022 377,022 379,491 380,510 382,466 383,624

Components of the Appropriation#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Child Disability Allowance 88,260 88,260 90,805 93,496 96,516 99,359
Disability Allowance 288,762 288,762 288,686 287,014 285,950 284,265
Supplementary Estimates Add-on 3,000 - - - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve social outcomes by providing financial support to help people meet disability-related living costs.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Disability Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Annual General Adjustment: Removing the Need for Additional Annual Decision Making 2015/16 661 605 606 606 606
Impact of the 2015 Annual General Adjustment on the Income Thresholds for Disability Allowance and the Community Services Card 2014/15 906 906 906 906 906
Impact of the Annual General Adjustment on the 2014 Income Thresholds for the Disability Allowance and the Community Services Card 2013/14 96 96 96 96 96

Reasons for Change in Appropriation#

Expenditure on Disability Assistance is expected to rise between 2016/17 and 2020/21 because of inflation adjustments to the payment rates and an expected increase in the number of recipients of Child Disability Allowance. Partly offsetting this is an expected decrease in the number of recipients of Disability Allowance.

Conditions on Use of Appropriation#

Reference Conditions
Child Disability Allowance is paid under sections 39A to 39E of the Social Security Act 1964 Child Disability Allowance is a non-taxable allowance that is available to the principal caregiver of a dependent child who has a serious disability. The child must have a physical or mental disability, need constant care and attention because of that disability and be likely to need that care for more than 12 months.
Disability Allowance is paid under section 69C of the Social Security Act 1964 and the Ministerial Direction - Disability Allowance pursuant to section 5 of the Social Security Act 1964 This Allowance reimburses additional costs arising from a disability that is likely to continue for a minimum of six months. Disability Allowance only covers additional costs that are not funded or provided by other agencies. Disability Allowance may be paid to persons receiving main benefits and, on an income-tested basis, to New Zealand Superannuation and Veterans' Pension recipients and to low-income earners.

Family Start/NGO Awards (M63)#

Scope of Appropriation#

This appropriation is limited to the payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications, in accordance with Cabinet decisions.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 705 705 705 705 705 705

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an increase in the number of NGO staff who have formal social work qualifications by assisting with course fees.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications.

Conditions on Use of Appropriation#

Reference Conditions
Family Start family/whanau Awards are paid under Cabinet decisions The Family Start Awards pay for course fees that enable Family Start employees to study for diploma or degree level qualifications in social work, early childhood education or health. This item has not been offered to new students since 2011. Existing students continue to receive these payments until their study ends.

Hardship Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to Civil Defence payments, Funeral Grants, Live Organ Donors Assistance, Special Benefit, Special Needs Grants, Temporary Accommodation Assistance and Temporary Additional Support to provide means-tested temporary financial assistance to persons with emergency or essential costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 356,979 341,979 343,761 272,010 277,746 286,746

Components of the Appropriation#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Special Needs Grant 100,230 100,230 100,510 88,692 81,433 77,579
Temporary Accommodation Assistance 2,340 2,340 770 138 69 -
Temporary Additional Support 223,030 223,030 227,707 171,965 185,893 199,677
Special Benefit 16,379 16,379 14,774 11,215 10,351 9,490
Supplementary Estimates Add-on 15,000 - - - - -

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve social outcomes by providing financial support to meet essential or emergency costs for people living in financial hardship.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Hardship Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Severe weather event (Cyclones Debbie and Cook) April 2017 2017/18 - 170 - - -
Family Incomes Package 2017/18 - (24,245) (102,451) (108,352) (115,061)
Temporary Accommodation Assistance Extension 2017/18 - 233 138 69 -
Further Extension of Rural Assistance Payments (Drought) and the Water Storage and Irrigation 2016/17 232 - - - -
North Canterbury Earthquake: Proposal for a Special Primary Sector Assistance Package: Decisions by Ministers with Power to Act; and Emergency Fisheries Measures 2016/17 200 - - - -
Rural Assistance Payments for Northland farmers affected by drought in 2017 2016/17 130 31 - - -
Severe weather event (Cyclones Debbie and Cook) April 2017 2016/17 30 170 - - -
Social Housing - Emergency Housing 2016/17 2,000 2,000 2,000 2,000 2,000
Children Living in Material Hardship 2015/16 (1,923) (1,769) (1,508) (1,508) (1,508)
Enhanced Use of Authoritative Data 2015/16 912 1,520 1,520 1,520 1,520
Extension of Temporary Accommodation Assistance 2015/16 2,767 527 - - -
Response to the Syrian Refugee Crisis: Implementation 2015/16 117 117 - - -

Reasons for Change in Appropriation#

Expenditure on Hardship Assistance is expected to continue to increase until April 2018, thereafter the impact of the Family Incomes Package reduces expenditure. The Family Incomes Package has the most impact on Temporary Additional Support. Special Needs Grants is expected to trend downwards as demand for emergency grants declines.

Conditions on Use of Appropriation#

Reference Conditions
Funeral Grants are paid under sections 61D to 61DE of the Social Security Act 1964 Funeral Grants are discretionary payments designed to help people with actual and reasonable funeral costs up to a set maximum. The Grant depends on the accessible estate of the deceased person, and on the assets and income of the surviving spouse or partner (if any) or, if the deceased is a child, on the assets and income of the parents and other persons liable in law to maintain the child. The Grant is a non-taxable payment.
Special Benefit is paid under section 23 of the Social Security (working for Families) Amendment Act 20014 and the Direction in Relation to Special Benefit pursuant to section 5 of the Social Security Act 1964 Special Benefit provides assistance to clients whose particular financial circumstances and commitments are causing them financial hardship. Special Benefit is available to beneficiaries and low-income earners who were receiving it immediately before 1 April 2006 and for whom Special Benefit has not been cancelled (except temporarily). Special Benefit is not intended as a long-term solution to a client's financial shortfall. It is instead paid to help clients meet essential costs while they make efforts to reduce their commitments and live within their usual income. This Benefit is a non-taxable payment.
Special Needs Grants are paid under the Special Needs Grants Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Special Needs Grant Programme assists people who have an immediate and essential or emergency need and have no other means of paying for it. Grants include the Rural Sector Assistance Programme, which assists farmers who are unable to meet living expenses because of adverse events (such as flooding). Special Need Grants are income and cash asset-tested. The Grants are generally one-off recoverable or non-recoverable, non-taxable financial assistance, although grants can be made on a continuing basis for living expenses to some persons (for example, under the rural assistance provisions).
Live Organ Donor Assistance is paid under the 'Assistance to Live Organ Donors Programme and Ministerial Direction' pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964 Live Organ Donor Assistance is financial assistance for people who donate a kidney or liver tissue for transplant purposes. It is not subject to income or asset tests. The Grant is a non-taxable payment.
Temporary Additional Support is paid under section 61G of the Social Security Act 1964 and the Social Security (Temporary Additional Support) Regulations 2005 made pursuant to section 132AB of the Social Security Act 1964 Temporary Additional Support provides financial assistance as a last resort to alleviate financial hardship for people whose essential costs cannot be met from their chargeable income and other resources. This support became available from 1 April 2006. This non-taxable payment is made to help meet essential living costs while clients reduce their commitments and live within their usual income. The standard period for this financial assistance is 13 weeks.
Civil Defence payments are made under the Civil Defence Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The payments are made to evacuees in areas where a Civil Defence emergency has been declared who do not have insurance to cover their costs or have access to other available aid (eg, public donations or other government or charitable relief funds). These payments are non-taxable.
Temporary Accommodation Assistance is paid under the Temporary Accommodation Assistance (Canterbury Earthquake) Programme pursuant to section 124 (1)(d) and Section 5 of the Social Security Act 1964 Temporary Accommodation Assistance is a subsidy to assist homeowners (including beneficiaries of a trust that owns the house in certain situations) affected by the Canterbury earthquake with temporary accommodation costs. This can be paid to homeowners who have had to leave their home as a result of the Canterbury 4 September 2010 Earthquake and resulting aftershocks and have no available temporary accommodation insurance cover.

Jobseeker Support and Emergency Benefit (M63)#

Scope of Appropriation#

This appropriation is limited to means-tested income support for people who are eligible for Jobseeker Support or an Emergency Benefit, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,712,139 1,694,839 1,662,932 1,598,756 1,528,939 1,520,046

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing means-tested income support to people not in employment but seeking it, temporarily unable to work, or who are in hardship and not eligible for another main benefit.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Jobseeker Support and Emergency Benefit under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Investing to Increase the Number of Engineering Graduates 2018/19 - - 5 5 5
Benefits for Recent Migrants - Tightening Access 2018/19 - - (3,583) (7,314) (10,339)
Family Incomes Package 2017/18 - (824) (3,340) (3,397) (3,397)
Social Security Act 1964 Rewrite 2017/18 (1,692) (1,733) (1,770) (1,798) (1,798)
Children Living in Material Hardship 2015/16 31,544 31,432 32,002 32,002 32,002
Response to the Syrian Refugee Crisis: Implementation 2015/16 1,717 2,662 2,020 1,530 1,530
Maintain the Student Allowance Parental Income Threshold 2015/16 (67) (383) (383) (383) (383)
Next Steps to Implement the Sole Parent Tertiary-Welfare Interface Package 2015/16 (3,435) (4,997) (4,997) (4,997) (4,997)
Enhanced Use of Authoritative Data 2015/16 (15,676) (39,273) (39,273) (39,273) (39,273)
Additional Medical Places 2014/15 24 33 33 33 33
Extending the Student Support Stand-Down Period for Permanent Residents 2014/15 598 598 598 598 598
Additional Flexibility for Highly Performing Private Training Establishments 2013/14 116 116 116 116 116
Continue 99-105% Tolerance Bands 2013/14 71 71 71 71 71
Reducing Student Allowances Eligibility for Students Aged 40 and Over 2013/14 608 608 608 608 608
Removing Student Allowances Eligibility for those Aged 65 and Over 2013/14 134 134 134 134 134
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education 2013/14 47 46 46 46 46
Transfer and Return of 2012/13 Underspends in Vote Tertiary Education 2013/14 53 53 53 53 53
20 Additional Medical Places 2013/14 8 8 8 8 8
Welfare Reform Phase Two - 28 Day Rule 2013/14 223 223 223 223 223
Welfare Reform Phase Two - Abatement Rules 2013/14 567 567 567 567 567
Welfare Reform Phase Two - Widows/ Woman Alone Rate Change 2013/14 (2,876) (2,876) (2,876) (2,876) (2,876)

Reasons for Change in Appropriation#

Expenditure on Jobseeker Support and Emergency Benefit is expected to fall between 2016/17 and 2020/21 because of an expected decline in the number of recipients. Partly offsetting this are inflation adjustments to the payment rates.

Conditions on Use of Appropriation#

Reference Conditions
Sections 88B to 88M of the Social Security Act 1964. Jobseeker Support is paid under sections 88B to 88M of the Social Security Act 1964, and on grounds of hardship, as set out in the Emergency Benefit and Benefits on Ground of Hardship Ministerial Direction pursuant to section 5 of the Social Security Act 1964. Jobseeker Support is available for people who are not in full-time employment but are either:
  • looking for and available for work
  • would be looking for and available for work but for circumstances that would qualify the person for an exemption under section 105, or
  • willing to undertake work but limited in their capacity to work due to sickness, injury or disability.
It is also payable to people who are in employment but losing earnings because, through sickness, injury, or disability, they are not working at all or working only at a reduced level. It is also available from the 27th week of pregnancy (or earlier if there are complications). It is a work-tested benefit, though some are expected to prepare for work if they have a temporary deferral from work obligations. Net weekly rates depend on age and family status. The sole parent rate is the same as for Sole Parent Support. This Benefit is taxable and is after deductions for debt establishments and overseas pension recoveries.
Jobseeker Support on the grounds of hardship may be paid to an applicant who meets the job seeking or sickness criteria for Jobseeker Support, but not the residency requirements and is in hardship, or to full-time students between the end of one academic year and the start of the next.
Emergency Benefit is paid under sections 61, 61AA and 61A of the Social Security Act 1964 and the Emergency Benefit and Benefits on Ground of Hardship Ministerial Direction pursuant to section 5 of the Social Security Act 1964. Emergency Benefit is payable on the grounds of hardship to people who are unable to earn a sufficient livelihood and are not eligible to receive any other main benefit. Emergency Benefit can also be paid instead of, or in substitution for, specified main benefits under the Act the person is otherwise eligible to receive. Rates of payment can vary but cannot exceed the rate of the analogous benefit that would be otherwise payable. This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

New Zealand Superannuation (M63)#

Scope of Appropriation#

This appropriation is limited to an income for people who have reached the qualifying age of 65 years and fulfil the residency requirements, as provided for in the New Zealand Superannuation and Retirement Income Act 2001.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 13,069,729 13,043,729 13,670,779 14,356,816 15,163,578 15,924,464

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve social participation and independence for superannuitants by providing financial support.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of New Zealand Superannuation under the New Zealand Superannuation and Retirement Income Act 2001. Performance information relating to the administration of the payment is provided under the Income Support and Assistance to Seniors appropriation.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Family Incomes Package 2017/18 - 788 (319) (16,801) (40,135)
Review of Surviving Spouse or Partner Weekly Compensation for Superannuitants Provision 2017/18 - 750 770 790 790
Portability of New Zealand Superannuation to Niue, Tokelau and the Cook Islands 2015/16 4,906 4,906 4,906 4,906 4,906

Reasons for Change in Appropriation#

Expenditure on New Zealand Superannuation is expected to rise between 2016/17 and 2020/21 because of an expected increase in the number of recipients. Also contributing to the rise are inflation and wage growth adjustments to the payment rates.

Conditions on Use of Appropriation#

Reference Conditions
New Zealand Superannuation is paid under the New Zealand Superannuation and Retirement Income Act 2001. New Zealand Superannuation provides income for people who have reached the qualifying age of 65 and fulfilled the residency requirements.
It includes different rates for a person who lives alone, shares accommodation or is married or in a civil union or de facto relationship. New Zealand Superannuation at a higher, income-tested rate is also paid on the election of a person with a spouse or partner who does not qualify for New Zealand Superannuation.
With the exception of the higher rate where a non-qualified partner is included, New Zealand Superannuation is not income-tested.
This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Orphan's/Unsupported Child's Benefit (M63)#

Scope of Appropriation#

This appropriation is limited to the Orphan's/Unsupported Child's Benefit to provide income support for people charged with the responsibility for a child whose parents are dead or cannot be located, suffer a serious long-term disablement, or where there has been a breakdown in the child's family, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 154,067 152,267 161,730 172,357 183,726 195,020

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve social outcomes by providing income support to the principal caregivers of orphans and unsupported children.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Orphan's/Unsupported Child's Benefit under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Additional Financial Assistance for Carers Receiving Orphan's Benefit or Unsupported Child's Benefit 2013/14 7,376 7,466 7,466 7,466 7,466

Reasons for Change in Appropriation#

Expenditure on Orphan's/Unsupported Child's Benefit is expected to rise between 2016/17 and 2020/21 because of an expected increase in the number of recipients and inflation adjustments to the payment rates.

Conditions on Use of Appropriation#

Reference Conditions
The Orphan's and Unsupported Child's Benefits are paid under sections 28, 29, 29A and 31 of the Social Security Act 1964 and under the Orphan's and Unsupported Child's Benefit (Additional Assistance Programme) Orphan's Benefit and Unsupported Child's Benefit, and associated grants, are paid to a caregiver of a dependent child whose parent(s) cannot support them or care for them because the parents are dead, cannot be located, suffer a serious long-term disablement or there has been a breakdown in the child's family. The applicant must be likely to be the principal caregiver for at least one year from the date of application for the benefit. Both Benefits are not income-tested on the caregiver's income or assets but are on the child's income excluding the personal earnings of the child. Both Benefits are non-taxable payments.

Sole Parent Support (M63)#

Scope of Appropriation#

This appropriation is limited to means-tested income support for people who are eligible for Sole Parent Support, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,176,096 1,163,696 1,116,799 1,097,918 1,110,892 1,119,623

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing means-tested income support to sole parents while they are caring for dependent children.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Sole Parent Support under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Benefits for Recent Migrants - Tightening Access 2018/19 - - (84) (172) (175)
Family Incomes Package 2017/18 - (6,421) (25,908) (27,335) (27,335)
Children Living in Material Hardship 2015/16 107,253 106,540 106,761 106,761 106,761
Enhanced Use of Authoritative Data 2015/16 (11,138) (27,843) (27,843) (27,843) (27,843)
Next Steps to Implement the Sole Parent Tertiary-Welfare Interface Package 2015/16 (23,201) (33,753) (33,753) (33,753) (33,753)
Response to the Syrian Refugee Crisis: Implementation 2015/16 173 270 215 168 168

Reasons for Change in Appropriation#

Expenditure on Sole Parent Support is expected to fall between 2016/17 and 2020/21 because of an expected decline in the number of recipients, the impact of the Family Incomes Package, and an expected decline in the average payment rate per person (before inflation adjustments). Partly offsetting these impacts, and producing a rise in expenditure in the final two years, are inflation adjustments to the payment rates.

Conditions on Use of Appropriation#

Reference Conditions
Sections 20A to 20H of the Social Security Act 1964 Sole Parent Support provides income support for sole parents with a dependent child younger than 14 years of age. Work preparation obligations usually apply to Sole Parent Support recipients with a child younger than five years of age. Part-time work obligations usually apply to Sole Parent Support recipients whose youngest child is aged five or older.
The weekly amounts quoted are before Family Tax Credit payments. The benefit is income-tested. The appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Special Circumstance Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to financial assistance to people in special circumstances and comprises the Clothing Allowance, and providing assistance for community costs, domestic violence and witness protection relocation, home help, social rehabilitation assistance, telephone costs paid in accordance with criteria set out in the Social Security Act 1964, and delegated legislation made under that Act; and Civilian Amputees Assistance, paid in accordance with criteria set out in the Disabled Persons Community Welfare Act 1975.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 11,644 11,044 11,269 11,497 11,636 11,788

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve social outcomes by providing financial support to people to meet costs arising from special circumstances.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Special Circumstance Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Reasons for Change in Appropriation#

Expenditure on Special Circumstance Assistance is expected to rise between 2016/17 and 2020/21 because of inflation adjustments to the payment rates and an expected increase in the average payment rate per person (before inflation adjustments).

Conditions on Use of Appropriation#

Reference Conditions
Civilian Amputee Assistance is paid under a Ministerial arrangement under section 30 of the Disabled Persons Community Welfare Act 1975 The Civilian Amputees Assistance payment is made to assist people with travel, accommodation and other costs incurred when attending a limb centre.
Clothing Allowance is paid under section 154, and the Social Security (Long-Term Residential Care) Regulations 2005 pursuant to section 155 of the Social Security Act 1964 The Clothing Allowance is available to all recipients of a Residential Care Subsidy or Residential Care Loan. It is payable annually. This assistance is non-taxable.
Community Costs payments are paid under the Community Costs Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Community Costs payment assists people in certain short-term residential treatment programmes to help them to re-integrate into the community at the end of their treatment programme. This assistance helps clients to meet essential costs in the community that they are not able to meet from their personal allowances or other resources. This assistance is non-taxable and income and cash asset-tested.
Relocation Assistance is paid under the Domestic Violence and Witness Protection (Relocation) Programme 2001 pursuant to section 124(1)(d) of the Social Security Act 1964 Relocation Assistance may be paid as income support to victims of domestic violence and witness protection cases relocated overseas on the recommendation of the New Zealand Police. This assistance covers travel, set-up costs and living expenses and is non-taxable
Home Help is paid under the Home Help Programme pursuant to section 124(1)(d) of the Social Security Act 1964 Home Help is available to families who require temporary part-time domestic help (such as housework, laundry and food preparation) because of a domestic emergency, multiple births or other reason (other than for age, ill health or disability-related reasons). This assistance is subject to a means test except in multiple birth cases. This assistance is non-taxable.
Social Rehabilitation Assistance is paid under the Social Rehabilitation Assistance Programme pursuant to section 124(1)(d) of the Social Security Act 1964 Social Rehabilitation Assistance provides financial assistance to help people in approved residential social rehabilitation programmes to pay the cost of their treatment or care in those programmes. Payment is made direct to the social rehabilitation provider. To be eligible a resident must receive an income-tested benefit, New Zealand Superannuation or Veterans' Pension and cannot receive Accommodation Supplement, Disability Allowance, Special Benefit or Temporary Additional Support at the same time. This assistance is non-taxable
Telephone Costs Payment is paid under the Telephone Costs Payment programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Telephone Costs Payment provides assistance with telephone rental costs to those people that received a Disability Allowance for telephone rental costs as at 31 March 1999. The rate of payment is adjusted so the Telephone Costs Payment plus any Disability Allowance payable does not exceed the maximum payment rate for Disability Allowance.
These payments are non-taxable.

Student Allowances (M63)#

Scope of Appropriation#

This appropriation is limited to means-tested allowances for students on an approved study programme, paid in accordance with criteria set out in the Student Allowance Regulations 1998; and payment of Student Allowance Transfer Grants to students with dependants, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 495,091 476,791 504,646 516,530 518,726 525,751

Components of the Appropriation#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Student Allowances 475,912 475,912 503,793 515,662 517,861 524,876
Student Allowance Transfer Grant 879 879 853 868 865 875
Supplementary Estimates Add-on 18,300          

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing financial support to eligible students to undertake tertiary study.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Student Allowances under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Management of Student Support appropriation.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Investing to Increase the Number of Engineering Graduates 2018/19 - - 63 63 63
Family Incomes Package 2017/18 - 6,300 19,500 19,500 19,800
Response to the Syrian Refugee Crisis: Implementation 2016/17 626 913 457 228 228
Children Living in Material Hardship 2015/16 6,759 6,927 6,958 6,958 6,958
Maintain the Student Allowance Parental Income Threshold 2015/16 (1,345) (4,915) (7,632) (7,632) (7,632)
Next Steps to Implement the Sole Parent Tertiary-Welfare Interface Package 2015/16 39,199 55,043 55,043 55,043 55,043
Additional Medical Places 2014/15 198 282 282 282 282
Extending the Student Support Stand-Down Period for Permanent Residents 2014/15 (7,690) (7,690) (7,690) (7,690) (7,690)
Additional Flexibility for Highly Performing Private Training Establishments 2013/14 2,209 2,209 2,209 2,209 2,209
Continue 99-105% Tolerance Bands 2013/14 1,492 1,492 1,492 1,492 1,492
Reducing Student Allowances Eligibility for Students Aged 40 and Over 2013/14 (5,246) (5,246) (5,246) (5,246) (5,246)
Removing Student Allowances Eligibility for those Aged 65 and Over 2013/14 (2,956) (2,956) (2,956) (2,956) (2,956)
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education 2013/14 281 476 476 476 476
Transfer and Return of 2012/13 Underspends in Vote Tertiary Education 2013/14 702 354 354 354 354
20 Additional Medical Places 2013/14 177 177 177 177 177

Reasons for Change in Appropriation#

Expenditure on Student Allowances is expected to increase in 2017/18 in line with higher uptake of allowances. The impact of the Family Incomes Package causes a rise in expenditure from 2017/18. Expenditure is also rising as inflation adjustments to the payment rates offsets expected reductions in the number of recipients from 2018/19.

Conditions on Use of Appropriation#

Reference Conditions
Student Allowances are paid under the Student Allowances Regulations 1998 Student Allowances are paid to assist eligible students with their living expenses while they undertake full-time study. This appropriation also includes accommodation benefit payable to Student Allowance recipients meeting certain criteria. A student is eligible for a Student Allowance if he or she is:
  • a New Zealand citizen or permanent resident of New Zealand for at least two years
  • enrolled in a full time course/programme recognised for Student Allowance purposes by the Tertiary Education Commission, and
  • aged 18 or over if undertaking secondary or tertiary study (under certain circumstances 16-17 year old students may be eligible), and meets certain income tests.
The range of Student Allowance rates that students are paid vary according to living circumstances: eligibility for allowances payable to students aged under 24 years (previously 25 years) without supported children are dependent on the taxable income of both parents and include an "at home" or "away from home" rate depending on the student's living circumstances, Allowances payable to single students aged 24 years or over are not targeted on parental income and do include an "at home" or "away from home" rate depending on the student's living circumstances, and rates to sole parents with children are the same as for the Domestic Purposes Benefit. This Allowance is inclusive of taxation and is after deductions for debt establishments.
Student Allowance Transfer Grant is paid under the Student Allowance Transfer Grant Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Student Allowance Transfer Grant Programme pays a non-taxable amount to students with a dependant (spouse or child) who would otherwise suffer hardship during the stand-down period while transferring from a student allowance to a working-age benefit. The amount payable is equal to one week of the net benefit amount (after abatement) and after deducting any other payment made.

Study Scholarships and Awards (M63)#

Scope of Appropriation#

This appropriation is limited to scholarships and awards to tertiary students awarded in accordance with Cabinet decisions; and Teach NZ Scholarships awarded in accordance with the Education Act 1989.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 19,167 19,167 19,167 19,167 19,167 19,167

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing financial support to eligible students to undertake tertiary study.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Study Scholarships and Awards under the Education Act 1989. Performance information relating to the administration of the payment is provided under the Management of Student Support appropriation.

Reasons for Change in Appropriation#

TeachNZ Scholarships, and Scholarships and NQF/NCEA Awards are capped items. There is no expected change in expenditure due to no adjustment to the caps.

Conditions on Use of Appropriation#

Reference Conditions
Scholarship and NQF/NCEA Awards are paid under Cabinet decisions Scholarship and National Qualifications Framework (NQF)/National Certificate of Educational Achievement (NCEA) Awards provide non-taxable monetary recognition to high performing students for excellence in the New Zealand Scholarship examinations and NQF/NCEA results. To be eligible for the award a student must be enrolled in a course of tertiary study. The value and tenure of the awards depends on the type of award.
TeachNZ Scholarships are awarded under section 139E of the Education Act 1989 TeachNZ Scholarships assist with study to become an early childhood education teacher, a Maori medium teacher or a teacher of specific secondary school subjects. Scholarship recipients have fees paid, and full-time students receive an additional non-taxable allowance for costs. Scholarship recipients are bonded to teach in New Zealand for a period equivalent to the period of assistance, and may have all or part of their scholarship payments recovered as a Student Loan under section 307AC of the Education Act 1989 if the bond is breached.

Supported Living Payment (M63)#

Scope of Appropriation#

This appropriation is limited to means-tested income support for people who are eligible for the Supported Living Payment, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,537,220 1,529,520 1,530,887 1,538,191 1,558,308 1,571,350

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing income support to people who are permanently and severely restricted in their capacity to work, or who are giving full-time care at home to a person who would otherwise require hospital or similar care.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Supported Living Payment under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Benefits for Recent Migrants - Tightening Access 2018/19 - - (512) (1,046) (1,321)
Family Incomes Package 2017/18 - (3,531) (14,537) (16,163) (16,163)
Children Living in Material Hardship 2015/16 16,182 16,499 16,749 16,749 16,749
Enhanced Use of Authoritative Data 2015/16 (12,814) (32,033) (32,033) (32,033) (32,033)
Response to the Syrian Refugee Crisis: Implementation 2015/16 266 415 330 258 258

Reasons for Change in Appropriation#

Expenditure on Supported Living Payment is expected to rise between 2016/17 and 2020/21 because of inflation adjustments to the payment rates. Largely offsetting this is an expected decrease in the average payment rate per person (before inflation adjustments), an expected decrease in the number of recipients, and the impact of the Family Incomes Package.

Conditions on Use of Appropriation#

Reference Conditions
Sections 40B to 40K of the Social Security Act 1964, Section 77 (1) (b) of the Social Security Act 1964 and section 19 of the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 Supported Living Payment is paid to people on medical or caring grounds.
Supported Living Payment is paid on medical grounds to people aged 16 years or older who are medically assessed as having a permanent and severe sickness, injury or disability arising from accident or existing from birth (ie, one that will last for not less than two years, or is expected to be terminal within that period) that prevents them from regularly working 15 hours or more a week in open employment. They also qualify if they are totally blind.
Includes payment of an additional allowance to recipients of Supported Living Payment in respect of their total blindness if they are employed in any occupation provided the person's total income from all sources does not exceed a specified amount.
Supported Living Payment is paid on caring grounds to people who are caring full-time for someone other than their partner who would need hospital or similar care if not in this care. This is paid to people 19 years or older, or 18 if the applicant does not have a dependent child.
The benefit is income-tested and subject to income abatement but all personal earnings of a totally blind person are excluded. Net weekly rates depend on age and family status. The weekly amounts quoted are before Family Tax Credit payments. This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.
This agreement allows New Zealand to make direct payments to recipients of Supported Living Payment for applications made after 1 July 2002. These payments are a function of the amount of time the recipient has lived in New Zealand and Australia.

Transitional Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to supplementary financial assistance to people who are adversely affected by changes in policy or legislation, so they will not be financially worse off at the point of change, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 65 65 1,313 750 650 500

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing supplementary financial assistance to people who are adversely affected by changes in policy or legislation.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Transitional Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Family Incomes Package 2017/18 - 1,063 500 400 250

Reasons for Change in Appropriation#

Expenditure on Transitional Assistance is expected to rise between 2016/17 and 2017/18, and to fall between 2017/18 and 2020/21, because of the impact of the Family Incomes Package.

Conditions on Use of Appropriation#

Reference Conditions
Transitional Assistance is paid through delegated legislation under the Social Security Act 1964 The delegated legislation provides for financial assistance to people who are financially disadvantaged as an unintended consequence of the net effects of the Children Living in Material Hardship Package.

Veterans' Pension (M75)#

Scope of Appropriation#

This appropriation is limited to the provision of the Veterans' Pension, and lump sum payments upon the death of a qualifying veteran or a veteran's qualifying spouse or partner, to eligible veterans and their spouses, partners and dependent children, as set out in the Veterans' Support Act 2014 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 176,353 174,853 162,002 150,901 141,510 131,690

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve social participation and independence for veterans by providing financial support.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Veterans' Pension under the War Pensions Act 1954 and the Veterans' Support Act 2014. Performance information relating to the administration of the payment is provided under the Processing of Veterans' Pensions appropriation.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Family Incomes Package 2017/18 - (79) (338) (420) (515)

Reasons for Change in Appropriation#

Expenditure on Veterans' Pension is expected to fall between 2016/17 and 2020/21 because of an expected decrease in the number of recipients. Partly offsetting this are inflation and wage growth adjustments to the payment rates.

Conditions on Use of Appropriation#

Reference Conditions
Veterans' Pensions paid in accordance with the criteria set out in the Veteran's Support Act 2015. Veterans' Pension is payable in the circumstances set out in the Veterans' Support Act 2015. This includes payment to ex-service personnel who served in the armed forces in a declared war or emergency, and have either: reached the qualifying age for New Zealand Superannuation and qualify Superannuation or who were entitled to receive a veterans' pension under the War Pensions Act 1954. A veteran can also be entitled to a pension if he or she was receiving a veterans' pension under the War Pensions Act 1954 by reason of infirmity and has not reached the New Zealand Superannuation qualification age, or if he or she were receiving a war disablement pension immediately before the commencement of Part 3 of Veterans' Support Act 2015. The rates of payment are the same as for New Zealand Superannuation. The spouses of deceased Veterans' Pension recipients continue to receive it if entitled under the Veterans' Support Act 2015.

Work Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to payments to beneficiaries, low income earners, students and ex beneficiaries to assist them to obtain and maintain employment, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 2,923 2,323 2,423 2,458 2,505 2,545

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing financial support to people who are transitioning or have recently transitioned into employment to sustain their employment.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Work Assistance under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Reasons for Change in Appropriation#

Expenditure on Work Assistance is expected to rise between 2016/17 and 2020/21 because of inflation adjustments to the payment rates.

Conditions on Use of Appropriation#

Reference Conditions
New Employment Transition Grants are paid under the New Employment Transition Grant Programme pursuant to section 124(1)(d) of the Social Security Act 1964 New Employment Transition Grants provide payments to clients with a dependent child or children during the first six months that their benefit is stopped due to gaining employment.
A payment can be made when the client is unable to work because they, their partner or dependent children become sick or because of a breakdown in childcare arrangements.
Payments are non-taxable and non-recoverable.
Employment Transition Assistance is paid under the Employment Transition Programme pursuant to section 124(1)(d) of the Social Security Act 1964 The Employment Transition Assistance pays assistance to former Supported Living Payment - sickness, injury, or disability recipients who have completed an Employment Trial (this is when a person on Supported Living Payment can work 15 hours or more in open employment for an agreed period of up to six months without losing eligibility to Supported Living Payment) and who would otherwise experience a drop in income when they lose eligibility to Supported Living Payment at the end of the trial. The Assistance is non-taxable.
Seasonal Work Assistance Programme is paid under the Seasonal Work Assistance Programme pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964 Seasonal Work Assistance provides assistance to people who left benefit to take up seasonal horticultural work and who cannot work and lose income due to adverse weather conditions. It pays a non-taxable weekly amount up to the net income lost for the week, subject to a maximum that depends on the client's family circumstances. The Assistance is non-taxable.
Work Bonus is paid under the Work Bonus Programme pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964 Work Bonus provides a non-recoverable financial incentive to people who leave benefit for paid employment. It is an entitlement available to qualifying recipients of Sole Parent Support who do not have work-test obligations and Supported Living Payment on grounds of sickness, injury, disability or total blindness, and Emergency Benefit analogous to either of these two benefits. The Work Bonus incentive is non-taxable.

Youth Payment and Young Parent Payment (M63)#

Scope of Appropriation#

This appropriation is limited to income support and incentive payments for people who are eligible for the Youth Payment or Young Parent Payment, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Expenses#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 47,595 46,195 58,360 58,547 59,016 59,693

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing income support and incentive payments to young people and young parents.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Youth Payment and Young Parent Payment under the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Benefits for Recent Migrants - Tightening Access 2018/19 - - (25) (51) (52)
Family Incomes Package 2017/18 - (101) (417) (440) (440)
Children Living in Material Hardship 2015/16 2,241 2,275 2,284 2,284 2,284
Enhanced Use of Authoritative Data 2015/16 (352) (880) (880) (880) (880)

Reasons for Change in Appropriation#

Expenditure on Youth Payment and Young Parent Payment is expected to rise between 2016/17 and 2020/21 because of an expected increase in the number of recipients and an expected increase in the average payment per person (before inflation adjustments).

Conditions on Use of Appropriation#

Reference Conditions
Youth Payment and Young Parent Payment are paid under the applicable sections of the Social Security Act 1964 Youth Payment provides support to unemployed 16-18 year olds who are in or available for full-time education, training or work-based learning, where it is inappropriate for them to obtain financial support from their parents or they are married, in a civil union or a de facto relationship.
Young Parent Payment provides support to unemployed 18 and 19 year old parents who are in or available for full-time education, training or work-based learning, and 16 and 17 year old parents who are in or available for full-time education, training or work-based learning, where it is inappropriate for them to obtain financial support from their parents or they are married, in a civil union or a de facto relationship.
In addition to the obligation to be in or available for full-time education, training or work-based learning, Youth Payment and Young Parent Payment recipients have an obligation to participate in budgeting activities. Young Parent Payment recipients have an additional obligation to participate in a parenting programme, to enrol their children with a Primary Healthcare Organisation, to keep their children under 5 up to date with Well Child checks and to use suitable childcare while they participate in education, training, work-based learning or part-time work.
These Payments are taxable and are after deductions for debt establishments.
The Young Parent and Youth Payments can include the payment of additional $10 weekly incentive payments for meeting education and training, budgeting and parenting obligations. The incentive payments are non-taxable.

3.4 - Non-Departmental Other Expenses#

Debt Write-downs (M63)#

Scope of Appropriation#

This appropriation is limited to the provision for write-downs of Crown debt administered by the Ministry of Social Development due to debt write offs or debt provisions resulting from the need to value debt in accordance with generally accepted accounting practice.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 97,891 97,891 96,933

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve accurate valuations of outstanding debt in accordance with generally accepted accounting practice.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this is a technical accounting appropriation solely to record the amount of debt write-downs and provisions for debt write-down resulting from the need to value the amount of outstanding debt in accordance with generally accepted accounting practice.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Social Housing Reform: Implementing the Transfer of Needs Assessment Functions 2013/14 8,000 8,000 8,000 8,000 8,000
Welfare Reform Phase Two - Pre-Employment Drug Testing Costs 2013/14 161 161 161 161 161

Reasons for Change in Appropriation#

This appropriation has decreased by $958,000 to $96.933 million in 2017/18. This decrease relates to a change in the level of outstanding debt and the rates used to calculate the debt write-down provision.

Extraordinary Care Fund (M63)#

Scope of Appropriation#

This appropriation is limited to providing financial assistance to carers receiving the Orphan's Benefit or Unsupported Child's Benefit to assist with costs for children in their care who are either experiencing difficulties that significantly impact on their development, or who are showing promise.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,308 2,308 2,308

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve more children in care reaching their full potential.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental Output Expense is less than $5 million.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Additional Financial Assistance for Carers Receiving Orphan's Benefit or Unsupported Child's benefit 2014/15 2,475 2,475 2,475 2,475 2,475
Approach and Criteria for the Extraordinary Care Fund 2014/15 (167) (167) (167) (167) (167)

Out of School Care and Recreation Programmes (M63)#

Scope of Appropriation#

This appropriation is limited to the provision of assistance to Out of School Care and Recreation programmes approved under the Children, Young Persons, and Their Families Act 1989, to assist with the establishment and/or operating costs of OSCAR programmes.

Expenses#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 19,410 19,410 19,473

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve increased opportunities for parents and caregivers to gain and sustain employment.

How Performance will be Assessed and End of Year Reporting Requirements#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The number of contracted places for children aged 5-14 years participating in funded OSCAR programmes will be no less than

45,000 52,637 48,000

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister for Social Development in the Vote Social Development Non-Departmental Appropriations Report.

Service Providers#

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment
National Council of YMCAS of New Zealand Incorporated 1,332 1,332 - 30/06/2017
Schools Out Limited 483 483 489 30/06/2019
Auckland Council 310 310 318 30/06/2018
Kidz in Care Limited 242 242 258 30/06/2018
GHB Consultants Limited 221 221 255 30/06/2018
Other providers (approximately 578 providers with funding from $1,850 to $199,000) 16,822 16,822 18,153  
Total 19,410 19,410 19,473  

The table presents the top five service providers who have funding arrangements with the Ministry of Social Development under this output as at 15 March 2017.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Children in Material Hardship 2015/16 400 400 400 400 400
Out of School Care and Recreational (Oscar) Subsidy 2014/15 2,107 2,170 2,236 2,236 2,236

Reasons for Change in Appropriation#

This appropriation has increased by $63,000 to $19.473 million in 2017/18. This is due to an increased funding for the Out of School Care and Recreational Subsidy.

3.5 - Non-Departmental Capital Expenditure#

Recoverable Assistance (M63)#

Scope of Appropriation#

This appropriation is limited to recoverable assistance payments, as a facility for low-income earners and beneficiaries to access means-tested assistance to help them to meet essential and immediate needs, or costs in specific circumstances, and to meet costs of pre-employment drug tests, paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation made under that Act.

Capital Expenditure#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 196,191 184,191 203,449 202,266 202,863 204,319

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing recoverable financial support to, or in respect of, people in financial hardship in specific circumstances.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for recoverable assistance payments as a facility for low-income earners and beneficiaries to access means-tested assistance in accordance with criteria set out in the Social Security Act 1964. Performance information relating to the administration of the payment is provided under the Improved Employment and Social Outcomes Support MCA and the Investigation of Overpayments and Fraudulent Payments and Collection of Overpayments appropriation.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Welfare Reform Phase Two - Pre-Employment Drug Testing Costs 2013/14 402 402 402 402 402

Reasons for Change in Appropriation#

Expenditure on Recoverable Assistance is expected to rise between 2016/17 and 2017/18 because of increases in the average amount paid per grant and in the number of recipients. From 2017/18 to 2020/21 expenditure is expected to remain steady.

Conditions on Use of Appropriation#

Reference Conditions
Payments are made under the Welfare Programme for Recoverable Assistance for Non-Beneficiaries, and relevant parts of the Welfare Programme for Special Needs Grants, both pursuant to section 124(1)d) of the Social Security Act 1964, the Ministerial Direction for Advance Payment of Benefits pursuant to section 5 of the Social Security Act 1964; and the Welfare Programme for DPB Sole Parent Study Assistance pursuant to both sections 5 and 124 (10)(d) of the Social Security Act 1964 The Social Security Act 1964 regulates access to Recoverable Assistance. The types of assistance include:
  • Recoverable Advance Payment of Benefit.
  • Recoverable Special Needs Grants including DPB Sole Parent Study Assistance.
  • Recoverable Assistance Programme.
Sections 88A, 102A-102E and 122A of Social Security Act 1964 The Social Security Act 1964 requires work-tested beneficiaries to pass pre-employment or pre-training drug tests required by a prospective employer or training course. Third parties can be reimbursed for drug-tests.

Student Loans (M57)#

Scope of Appropriation#

This appropriation is limited to loans to tertiary students undertaking studies at approved tertiary institutions in accordance with Cabinet decisions.

Capital Expenditure#

  2016/17 2017/18 2018/19 2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,634,026 1,589,026 1,631,735 1,643,900 1,657,663 1,681,621

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve employment and social outcomes by providing financial support to eligible students to undertake tertiary study.

How Performance will be Assessed and End of Year Reporting Requirements#

An exemption was granted under s.15D(2)(b)(ii) of the PFA, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Student Loans. Performance information relating to the administration of the Loans is provided under the Management of Student Loans appropriation.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Annual Maximum Fee Movement for 2017 and 2018 2016/17 3,130 6,133 6,736 6,978 6,978
Response to the Syrian Refugee Crisis: Implementation 2016/17 96,140 70 35 35 35
Delivering support to graduate-entry students affected by the 7 EFTS Limit 2015/16 898 1,275 1,548 1,002 1,002
Investing to Increase the Number of Engineering Graduates 2015/16 57 187 879 879 879
Maintain the Student Allowance Parental Income Threshold 2015/16 1,023 3,739 5,806 5,806 5,806
Set the Annual Maximum Fee Movement at 3% for 2016 2015/16 (11,235) (11,717) (12,149) (12,149) (12,149)
Additional Medical Places 2014/15 1,464 2,277 2,277 2,277 2,277
Extending the Student Support Stand-Down Period for Permanent Residents 2014/15 (13,176) (13,176) (13,176) (13,176) (13,176)
Fixing a 4% Annual Maximum Fee Movement in 2015 and 2016 2014/15 32,659 32,659 32,659 32,659 32,659
Additional Flexibility for Highly Performing Private Training Establishments 2013/14 12,689 12,689 12,689 12,689 12,689
Continue 99-105% Tolerance Bands 2013/14 5,484 5,484 5,484 5,484 5,484
Reducing Student Allowance Eligibility for Students Aged 40 and Over 2013/14 (627) (627) (627) (627) (627)
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education 2013/14 3,805 4,496 4,496 4,496 4,496
Transfer and Return of 2012/13 Underspends in Vote Tertiary Education 2013/14 2,869 735 735 - -
20 Additional Medical Places 2013/14 1,294 1,294 1,294 1,294 1,294

Reasons for Change in Appropriation#

Expenditure on Student Loans is expected to rise between 2016/17 and 2020/21 because of an expected increase in the average borrowings on Student Loans. Partly offsetting this is an expected decrease in the number of Student Loans.

Conditions on Use of Appropriation#

Reference Conditions
Student Loans Scheme Act 2011 The Student Loan Scheme Act 2011 provides for the collection of Student Loan repayment and Bonded Scholarships.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Community Support Services (M63)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to prevent and reduce vulnerability and harm for individuals, families and communities.

Scope of Appropriation#

Departmental Output Expenses
Developing and Managing Community Services
This category is limited to approving, monitoring, contracting and managing the relationships with community-based service providers; engaging with communities and developing services.
Non-Departmental Output Expenses
Community Support and Advice
This category is limited to services that build financial capability, develop community and provider capability and provide targeted advice and support for vulnerable individuals and families.
Participation and Support Services for Seniors
This category is limited to services that address isolation, abuse and neglect of older people, and support participation in communities.
Supporting Victims and Perpetrators of Family and Sexual Violence
This category is limited to services that support victims of family and sexual violence and address perpetrator behaviour.

Expenses, Revenue and Capital Expenditure#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation#

- - 92,802

Departmental Output Expenses#

     
Developing and Managing Community Services - - 19,083

Non-Departmental Output Expenses#

     
Community Support and Advice - - 26,156
Participation and Support Services for Seniors - - 2,990
Supporting Victims and Perpetrators of Family and Sexual Violence - - 44,573

Funding for Departmental Output Expenses#

     

Revenue from the Crown#

- - 15,408
Developing and Managing Community Services - - 15,408

Revenue from Others#

- - 3,675
Developing and Managing Community Services - - 3,675

Comparators for Restructured Appropriation#

  2016/17 2017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Departmental Output Expense: Investing in Communities 15,466 15,466 -
Non-Departmental Output Expense: Counselling and Rehabilitation Services 3,588 3,588 -
Non-Departmental Output Expense: Family Wellbeing Services 11,248 11,248 -
Non-Departmental Output Expense: Strong Families and Connected Communities 49,461 49,461 -
Non-Departmental Output Expense: Education and Prevention Services 1,707 1,707 -
Total 81,470 81,470 92,802

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve a reduction in the number of families that experience hardship and adverse life outcomes.

How Performance will be Assessed for this Appropriation#

Performance will be assessed by:

  • A decrease in the number of family harm investigations attended by NZ Police (see Note 1).
  • A decrease in the number of working age people on a benefit.

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses#

     

Developing and Managing Community Services#

     

The category is intended to achieve effective and efficient customer and community services that meet community needs and reduce vulnerability.

     
MSD Approvals:
     

The percentage of Level 1 (see Note 2) and Level 2 (see Note 3) Ministry of Social Development contracted providers who will be assessed at least once every two years against Ministry of Social Development approval standards will be no less than

100% 100% 100%

The percentage of Level 3 (see Note 4) Ministry of Social Development contracted providers who will be assessed within the review frequency (see Note 5) against Ministry of Social Development approval standards will be no less than

90-100% 95% 90%

The percentage of assessments on behalf of Social Sector Agencies (see Note 6) who will be assessed by Ministry of Social Development Approvals within the review frequency, against Social Sector Accreditation Standards will be no less than

100% 100% 100%
Result Measurement Framework:
     

The percentage of total services funded with Result Measurement Framework contracts (for contracting work) will be no less than

Establishing baseline 30% 50%

The percentage of all contracted services which achieved or exceeded the target for their primary contracted measure will be no less than

New measure for 2017/18 New measure for 2017/18 75%

Non-Departmental Output Expenses#

     

Community Support and Advice#

     

The category is intended to achieve increased financial capability, inclusion and improved wellbeing of vulnerable individuals and families.

     
Building Financial Capability:
     

The percentage of clients who report having greater financial confidence and capability (comparing pre and post intervention) will be no less than

New measure for 2017/18 New measure for 2017/18 80%

The percentage of clients who completed the service with all of their goals achieved, or evidence (in workers opinion) of ability to achieve their goals without further support will be no less than

New measure for 2017/18 New measure for 2017/18 80%
Sector Umbrella Groups:
     

The number of agencies worked with or supported will be no less than

New measure for 2017/18 New measure for 2017/18 500

The percentage of member agencies who report they have up to date information from the umbrella organisation will be no less than

New measure for 2017/18 New measure for 2017/18 90%

The percentage of member agencies who report that they are better able to deliver their services as a result of the support offered by the umbrella organisation will be no less than

New measure for 2017/18 New measure for 2017/18 90%
Microfinance Partnership:
     

The percentage of loans approved during the reporting period will be no less than

New measure for 2017/18 New measure for 2017/18 25%

Participation and Support Services for Seniors#

     

This category is intended to achieve a reduction in the number of isolated, abused and neglected older people, and increase their participation in their communities.

     
Elder Abuse and Neglect Services (EANS)
     

The percentage of clients who indicate that the service provided met their needs will be no less than

New measure for 2017/18 New measure for 2017/18 80%

The percentage of clients who indicate they have greater control over their lives after receiving the service will be no less than

New measure for 2017/18 New measure for 2017/18 80%

Supporting Victims and Perpetrators of Family and Sexual Violence#

     

This category is intended to achieve a reduction in the number of victims and perpetrators of family and sexual violence.

     

The percentage of clients who have expressed that they were satisfied with the service, content and delivery of the programme will be no less than

90% 90% 90%
Harmful Sexual Behaviour Services (HSB):
     

The percentage decrease in risk factors (excludes non-mandated adults pre-assessed as low risk) for clients who complete the intervention will be no less than

New measure for 2017/18 New measure for 2017/18 80%

The percentage increase in protective factors for clients who complete the intervention will be no less than

New measure for 2017/18 New measure for 2017/18 80%
E Tu Whanau
     

The percentage of those surveyed who report that the use of E Tu Whanau resources has led a change in beliefs and attitudes in their community will be no less than

60% 60% 60%

The number of activities supported by E Tu Whanau will be between

40-50 40 40-50
It's Not OK
     

The percentage of surveyed community groups that say the campaign has increased their ability to address or prevent family violence will be no less than

90% 93% 90%

Note 1 - Data from NZ Police.

Note 2 - These are providers who deliver care-based services.

Note 3 - These are providers delivering services to high risk/vulnerable clients who require intensive support.

Note 4 - These are providers delivering services to low-risk client groups or the general population.

Note 5 - Review frequency means: for Level 3 community service providers - every two years; for Level 3 OSCAR providers - every two to five years depending on risk; for Level 4 providers - every two years via provider self-assessment.

Note 6 - Social Sector Agencies includes Ministry of Justice, Department of Corrections and any other agencies as agreement specifies.

Service Providers for the Multi-Category Appropriation#

Contracts for 2017/18 are under negotiation.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Developing and Managing Community Services#

           
Ministry of Social Development - Maintaining Services 2017/18 - 220 199 200 197
E Tu Whanau Programme of Action 2017/18 - 500 500 - -
Gang Action Plan Community-based Pilots 2017/18 - 150 - - -

Supporting Victims and Perpetrators of Family and Sexual Violence#

           
E Tu Whanau Programme of Action 2017/18 - 1,500 1,500 - -
Gang Action Plan Community-based Pilots 2017/18 - 1,600 - - -

Reasons for Change in Appropriation#

This is a newly established multi-category appropriation in 2017/18 due to most of the amounts of the previous appropriations transferring to Vote Vulnerable Children, Oranga Tamariki.

Improved Employment and Social Outcomes Support (M63)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to operate the benefit system and associated interventions in such a way as to improve client outcomes (employment and social) by moving them closer to independence, with a focus on those at risk of long term benefit receipt.

Scope of Appropriation#

Departmental Output Expenses#

Administering Income Support
This category is limited to assessing, paying, reviewing entitlements and collecting balances owed by clients for income support, supplementary assistance, grants and allowances.
Improving Employment Outcomes
This category is limited to providing specified assistance, including services provided in accordance with criteria set out in delegated legislation made under the Social Security Act 1964, to support people who are receiving or likely to receive working age benefits or youth support payments and are work ready to move into sustainable employment.
Improving Work Readiness Outcomes
This category is limited to providing services, including services provided in accordance with criteria set out in delegated legislation made under the Social Security Act 1964, to address barriers to employment (such as literacy, numeracy, health, skills, drug or alcohol use, confidence and motivation) for people who are receiving or likely to receive working age benefits or youth support payments so that they become work ready.

Expenses, Revenue and Capital Expenditure#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation#

673,653 673,653 662,372

Departmental Output Expenses#

     
Administering Income Support 289,438 289,438 266,514
Improving Employment Outcomes 299,246 299,246 309,519
Improving Work Readiness Outcomes 84,969 84,969 86,339

Funding for Departmental Output Expenses#

     

Revenue from the Crown#

670,614 670,614 658,810
Administering Income Support 286,399 286,399 262,952
Improving Employment Outcomes 299,246 299,246 309,519
Improving Work Readiness Outcomes 84,969 84,969 86,339

Revenue from Others#

3,039 3,039 3,562
Administering Income Support 3,039 3,039 3,562

What is Intended to be Achieved with this Appropriation#

The appropriation is intended to achieve a reduction in long-term welfare dependency.

How Performance will be Assessed for this Appropriation#

Performance will be assessed by:

  • a reduction in the total number of people receiving benefit by 25%, from 295,000 in June 2014 to 220,000 by June 2018, and
  • a reduction in the long-term cost of benefit dependency by $13 billion as measured by an accumulated Actuarial Release (Note 1) by June 2018.

Note 1 - 'Actuarial Release' is defined as the difference between a current and previous estimate of the liability. The measure attempts to isolate the impact of collective government management on beneficiary numbers. Adjustments are made to remove the impact of interest and inflation rate changes on the liability and other factors beyond the control of management.

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses#

     

Administering Income Support#

     

The category is intended to achieve accurate and efficient operation of the benefit system so that the correct amount is paid to the correct people on time.

     

The proportion of benefit entitlement assessments completed accurately will be no less than

90% 90% 90%

The proportion of benefit entitlement assessments completed within five working days will be no less than

90% 91.9% 90%

Improving Employment Outcomes#

     

This category is intended to achieve an increase in the number of people (from those who are currently receiving or are likely to receive working-age benefits and are work ready) moving into sustainable employment.

     

The proportion of clients with full-time work obligations who remain independent of benefit for at least 26 weeks will be no less than

60% 65.5% 60%

The proportion of clients with full-time work obligations who are engaged will be no less than

80% 88.5% 80%

The proportion of clients who are not on a main benefit eight weeks following completion of an employment intervention programme will be no less than

50% 53.7% 50%

Improving Work Readiness Outcomes#

     

This category is intended to achieve a substantial reduction in barriers to employment so that people who are receiving or are likely to receive working-age benefits can become work ready.

     

The proportion of clients with part-time, preparation or deferred obligations who remain independent of benefit for at least 26 weeks will be no less than

60% 64.1% 60%

The proportion of clients with part-time, preparation or deferred work obligations who are engaged will be no less than

70% 81.6% 70%

The proportion of clients who are not on a main benefit 16 weeks after completing a work readiness intervention will be no less than

35% 36.5% 35%

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Departmental Output Expenses#

           
Administering Income Support
           
Ministry of Social Development - Maintaining Services 2017/18 - 3,014 2,672 2,585 2,646
Changes to Levy funding allocations and processes for migrant settlement services from 2017/18 2017/18 - (782) (782) (782) (782)
Employee Safety and Security 2017/18 - 1,521 - - -
Temporary Accommodation Assistance Extension 2017/18 - 100 194 100 -
Benefits for Recent Migrants - Tightening Access 2017/18 - 406 - - -
Additional Investment In MSD's Capital Base 2016/17 648 1,656 2,016 2,016 2,016
Ensuring the Safety of Our Employees 2016/17 3,751 2,574 463 463 463
Extension of Temporary Accommodation Assistance 2016/17 537 233 - - -
Measures to Support More People in Emergency Housing 2016/17 2,000 2,600 - - -
Move Payback of Brought Forward Funding for the Simplification programme of work 2016/17 9,000 - - (9,000) -
Social Sector Trials in the Wairarapa 2016/17 (50) - - - -
Allocation of Baseline Contributions Across Agencies for the Budget 2015 System Package 2015/16 (1,426) (1,426) (1,426) (1,035) (1,035)
Children Living in Material Hardship 2015/16 6,872 3,618 3,618 3,618 3,618
Next Steps to Implement the Sole Parent Tertiary-Welfare Interface Package 2015/16 (329) (481) (481) (481) (481)
Simplification: Implementing Client-centred Transactional Services 2014/15 (9,000) (13,500) (13,600) (13,600) (13,600)
Additional Financial Assistance for Carers Receiving Orphan's Benefit or Unsupported Child's Benefit 2013/14 114 114 114 114 114
Improving Employment Outcomes
           
Ministry of Social Development - Maintaining Services 2017/18 - 3,414 3,059 3,166 3,133
Employee Safety and Security 2017/18 - 1,722 - - -
Individual Placement Support for Clients with Mental Health Conditions 2017/18 - 103 1,339 1,332 1,332
Intensive Client Support - Extension 2017/18 - 7,200 6,100 6,200 -
Achieving Better Public Service Result Area 1 2016/17 11,651 11,566 11,566 6,500 6,500
Ensuring the Safety of Our Employees 2016/17 1,929 1,324 238 238 238
Response to the Syrian Refugee Crisis: Implementation 2015/16 836 836 - - -
Improving Outcomes and Managing the Liability (Investment Approach) 2014/15 25,000 25,000 25,000 25,000 25,000
Improving Work Readiness Outcomes
           
Ministry of Social Development - Maintaining Services 2017/18 - 975 880 853 844
Employee Safety and Security 2017/18 - 492 - - -
Achieving Better Public Service Result Area 1 2016/17 3,000 3,000 3,000 - -
Ensuring the Safety of Our Employees 2016/17 63 43 8 8 8
Extending The Youth Service to 18 and 19 Year-Olds 2016/17 10,326 10,517 10,286 10,286 10,286
Limited Service Volunteer Scheme 2015/16 3,860 3,860 3,860 3,860 3,860

Reasons for Change in Appropriation#

This appropriation has decreased by $11.281 million to $662.372 million in 2017/18. This is mainly due to:

  • one-off funding for the Simplification Programme of Work in 2016/17: $25.876 million
  • one-off funding for Collective employment agreement in 2016/17: $5 million
  • reduced funding for Package for Children Living in Material Hardship in 2017/18: $3.254 million
  • reduced funding for Ensuring the Safety of our Employees in 2017/18: $1.802 million.

The above is offset by:

  • new funding for Ministry of Social Development - Maintaining Services in 2017/18: $7.403 million
  • new funding for Intensive Client Support - Extension in 2017/18: $7.200 million
  • a fiscally neutral transfer to other appropriations in 2016/17 in Vote Social Development, to reflect the redistribution of costs to appropriations resulting from change in cost drivers to better reflect the integrated nature of frontline service delivery: $5.843 million
  • one-off funding for Employee Safety and Security: $3.735 million.

Independent Advice on Government Priority Areas (M63)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to provide independent advice to the Minister for Social Development for discharging decision-making responsibilities.

Scope of Appropriation#

Non-Departmental Output Expenses#

Other Advice
This category is limited to the procurement of other advice (including advice on operational matters; advice from expert parties that provide review services not available in-house; advice on matters where a review is necessary but cannot be undertaken due to a conflict of interest; and advice on procurement to ensure value for money) on government priority areas.
Policy Advice
This category is limited to the provision of independent advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government priority areas.

Expenses, Revenue and Capital Expenditure#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation#

518 518 518

Non-Departmental Output Expenses#

     
Other Advice 364 364 269
Policy Advice 154 154 249

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve effective and efficient independent advice and expertise on policy and operational issues to support the Minister for Social Development's decision-making responsibilities.

How Performance will be Assessed for this Appropriation#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental output expense is less than $5 million

Exempted Exempted Exempted

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses#

     

Other Advice#

     

This category is intended to achieve effective and efficient independent expertise, advice and assurance, other than policy advice, to support the Minister's portfolio and decision-making responsibilities.

     

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental output expense is less than $5 million.

Exempted Exempted Exempted

Policy Advice#

     

The category is intended to achieve effective and efficient independent policy advice and second opinion advice to support the Minister's portfolio and decision-making responsibilities.

     

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental output expense is less than $5 million.

Exempted Exempted Exempted

End of Year Performance Reporting#

An exemption was granted under s.15D(2)(b)(iii) of the PFA as the amount of this annual appropriation for a Non-departmental output expense is less than $5 million.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Policy Advice#

           
Funding additional meetings of the Youth Advisory Panel 2016/17 (20) (20) - - -

Partnering for Youth Development (M77)#

Overarching Purpose Statement#

The single overarching purpose of this appropriation is to improve outcomes for young people through youth development opportunities.

Scope of Appropriation#

Departmental Output Expenses#

Administering Youth Development
This category is limited to generating, funding and promoting youth development opportunities.

Non-Departmental Output Expenses#

Increasing Youth Development Opportunities
This category is limited to purchasing youth development opportunities.

Expenses, Revenue and Capital Expenditure#

  2016/17 2017/18
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation#

10,515 10,515 10,592

Departmental Output Expenses#

     
Administering Youth Development 2,682 2,682 2,339

Non-Departmental Output Expenses#

     
Increasing Youth Development Opportunities 7,833 7,833 8,253

Funding for Departmental Output Expenses#

     

Revenue from the Crown#

2,682 2,682 2,339
Administering Youth Development 2,682 2,682 2,339

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve an improvement in the capability and resilience of young people.

How Performance will be Assessed for this Appropriation#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of participants who report they have improved their capability and resilience through completion of a youth development opportunity will be between

80-85% 80% 80-85%

The percentage of participants who report being satisfied or very satisfied with the youth development opportunity they have participated in will be between

New measure for 2017/18 New measure for 2017/18 85-90%

What is Intended to be Achieved with each Category and How Performance will be Assessed#

  2016/17 2017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses#

     

Administering Youth Development#

     

This category is intended to achieve an increase in youth development opportunities for all young people, particularly those from disadvantaged backgrounds.

     

The number of individual young people accessing funded youth development opportunities will be no less than

60,000 60,000 70,000

The percentage of total funding for youth development opportunities targeted at young people from disadvantaged backgrounds will be no less than

30% 30% 30%

Non-Departmental Output Expenses#

     

Increasing Youth Development Opportunities#

     

This category is intended to achieve an improvement in the personal, social and decision-making skills of young people through completion of youth development opportunities.

     

The percentage of participants who report an improvement in their personal, social and decision-making skills through completion of a youth development opportunity will be between

80-85% 80% 80-85%

The percentage of total youth development opportunities created in partnership with the business and philanthropic sector will be no less than

10% 10% 10%

Service Providers for the Multi-Category Appropriation#

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment
Young Enterprise Trust 460 460 Contract under negotiation Contracts reviewed annually
Graeme Dingle Foundation 418 418 Contract under negotiation Contracts reviewed annually
The Malcam Charitable Trust 364 364 Contract under negotiation Contracts reviewed annually
The Duke of Edinburgh's Hillary Award 252 252 Contract under negotiation Contracts reviewed annually
Spirit of Adventure Trust Board 250 250 Contract under negotiation Contracts reviewed annually
TYLA Trust 217 217 Contract under negotiation Contracts reviewed annually
Inspiring Stories Trust 200 200 Contract under negotiation Contracts reviewed annually
The Salvation Army New Zealand Trust 200 200 Contract under negotiation Contracts reviewed annually
Other Providers (approximately 123 providers with funding levels from $1,000 to $150,000) 5,472 5,472 Contract under negotiation Contracts reviewed annually

Total#

7,833 7,833 8,253  

The table above presents the top eight service providers who have funding arrangements with the Ministry of Social Development under Non-department output expenses: Partnering for Youth Development in year 2016/17 as at 6 March 2017.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Social Development in the Ministry of Social Development Annual Report.

Current and Past Policy Initiatives#

Policy Initiative Year of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000

Departmental Output Expenses#

           
Administering Youth Development
           
Ministry of Social Development - Maintaining Services 2017/18 - 27 24 24 24
Establishing Partnering for Youth Development MCA 2016/17 2,312 2,312 2,312 2,312 2,312

Non-Departmental Output Expenses#

           
Increasing Youth Development Opportunities
           
Youth Enterprise Initiatives Expansion 2017/18 - 1,500 1,500 1,500 1,500
Establishing Partnering for Youth Development MCA 2016/17 7,753 6,753 6,753 6,753 6,753

Reasons for Change in Appropriation#

This appropriation has increased by $77,000 to $10.592 million in 2017/18. This is mainly due to:

  • new funding for Youth Enterprise Initiatives Expansion: $1.500 million
  • new funding for Ministry of Social Development - Maintaining Services: $27,000.

The above is offset by:

  • reduced funding in 2017/18 when the Multi-category appropriation was established in 2016/17: $1 million
  • a one-off increase in 2016/17 as a result of the transfer of the underspend in the Youth Development Partnership Fund appropriation of $450,000 from 2015/16 to 2016/17.