Information supporting the estimates of appropriations

Social Development and Housing Sector - Information Supporting the Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2009

Information Supporting the Estimates is organised on the basis of sectors, with each Vote and its administering department allocated to one sector (with a small number of exceptions). The Information Supporting the Estimates comprises of sector overview information, together with statements of responsibility; performance information for appropriations in Votes covered by the sector; and statements of forecast service performance and forecast financial statements of departments included in the sector. Statements of Intent of departments included in the sector form part of the supporting information.

Formats and related files

Information Supporting the Estimates is organised on the basis of sectors, with each Vote and its administering department allocated to one sector (with a small number of exceptions). The Information Supporting the Estimates comprises of sector overview information, together with statements of responsibility; performance information for appropriations in Votes covered by the sector; and statements of forecast service performance and forecast financial statements of departments included in the sector. Statements of Intent of departments included in the sector form part of the supporting information.

 

Chapters of the Social Development and Housing Sector volume of the Information Supporting the Estimates 2008/09 are available in Adobe PDF and HTML formats.

Using PDF Files

Cover, Contents#

Introduction#

Sector Overview#

  • Ministerial Statements of Responsibility
  • Chief Executive Statements of Responsibility

Performance Information for Appropriations in Each Vote#

  • Vote Social Development
  • Vote Senior Citizens
  • Vote Veterans' Affairs - Social Development
  • Vote Youth Development
  • Vote Housing

Statement of Forecast Service Performance of Departments#

Forecast Financial Statements of Departments#

  • Statement of Common Accounting Policies
  • Ministry of Social Development
  • Department of Building and Housing

Statements of Intent of Departments (separately produced but forming part of this volume)#

Introduction#

Purpose of Information Supporting the Estimates

The Information Supporting the Estimates provides members of Parliament with additional performance information in order to:

  • support their examination of the appropriations and other authorities requested by the Government in the first Appropriation Bill for the forthcoming financial year, and
  • provide a base against which they can later assess the actual performance of the Crown and individual departments and Offices of Parliament over that financial year.

The Information Supporting the Estimates is organised into 10 volumes by sector, each of which covers one or more Votes. The scope of each sector and the allocation of Votes to a sector reflect a balancing of three desired characteristics - namely that each volume should, where possible:

  • reflect natural sectors
  • keep together Votes administered by the same department, and
  • keep together Votes allocated to a particular select committee of the House of Representatives for examination.

The number of sectors and coverage of each sector is set in consultation with the House of Representatives. The 10 sectors are:

  • Economic Development and Infrastructure Sector
  • Education and Science Sector
  • Environment Sector
  • External Sector
  • Finance and Government Administration Sector
  • Health Sector
  • Justice Sector
  • National Identity Sector
  • Primary Sector
  • Social Development and Housing Sector.

Votes and departments included in each sector are listed in the following table.

Votes and Departments in Each Sector#

Votes by Sector Departments by Sector
Economic Development and Infrastructure Sector - B.5A Vol.1  
Vote Economic Development
Vote Commerce
Vote Communications
Vote Consumer Affairs
Vote Energy
Vote Tourism
Ministry of Economic Development
Vote Transport Ministry of Transport
Vote Labour
Vote ACC
Vote Employment
Vote Immigration
Department of Labour
Education and Science Sector - B.5A Vol.2  
Vote Education Ministry of Education
Vote Education Review Office Education Review Office
Vote Research, Science and Technology Ministry of Research, Science and Technology
Vote Crown Research Institutes (this Vote is administered by the Treasury, which is in the Finance and Government Administration Sector)  
Environment Sector - B.5A Vol.3  
Vote Environment
Vote Climate Change
Ministry for the Environment
Vote Conservation Department of Conservation
Vote Local Government (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment
External Sector - B.5A Vol.4  
Vote Foreign Affairs and Trade
Vote Official Development Assistance
Ministry of Foreign Affairs and Trade
Vote Defence Ministry of Defence
Vote Defence Force
Vote Veterans' Affairs - Defence Force
New Zealand Defence Force
Vote Customs New Zealand Customs Service
Finance and Government Administration Sector - B.5A Vol.5  
Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance
Vote State-Owned Enterprises
The Treasury
Vote Revenue Inland Revenue Department
Vote Ministerial Services (this Vote is administered by the Department of Internal Affairs, which is in the National Identity Sector)  
Votes by Sector Departments by Sector
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Parliamentary Service Parliamentary Service
Vote Audit Controller and Auditor-General
Vote Ombudsmen Office of the Ombudsmen
Health Sector - B.5A Vol.6  
Vote Health Ministry of Health
Justice Sector - B.5A Vol.7  
Vote Justice
Vote Courts
Ministry of Justice
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office
National Identity Sector - B.5A Vol.8  
Vote Arts, Culture and Heritage
Vote Sport and Recreation
Ministry for Culture and Heritage
Vote Statistics Statistics New Zealand
Vote National Archives Archives New Zealand
Vote National Library National Library of New Zealand
Vote Māori Affairs Te Puni Kōkiri
Vote Treaty Negotiations (this Vote is administered by the Ministry of Justice, which is in the Justice Sector)  
Vote Pacific Island Affairs Ministry of Pacific Island Affairs
Vote Women's Affairs Ministry of Women's Affairs
Vote Internal Affairs
Vote Community and Voluntary Sector
Vote Emergency Management
Vote Racing
Department of Internal Affairs
Primary Sector - B.5A Vol.9  
Vote Agriculture and Forestry
Vote Biosecurity
Ministry of Agriculture and Forestry
Vote Fisheries Ministry of Fisheries
Vote Food Safety New Zealand Food Safety Authority
Vote Lands Land Information New Zealand
Social Development and Housing Sector - B.5A Vol.10  
Vote Social Development
Vote Senior Citizens
Vote Veterans' Affairs - Social Development
Vote Youth Development
Ministry of Social Development
Vote Housing Department of Building and Housing

Purpose and Nature of Appropriations#

An appropriation is a statutory authority from Parliament allowing the Crown or an Office of Parliament to incur expenses or capital expenditure.

Neither the Crown nor an Office of Parliament can legally incur any expense or capital expenditure - as those terms are defined in the Public Finance Act 1989 (PFA) - unless it is expressly authorised by or under an Act of Parliament.

Limits Created by Appropriations

Each appropriation is allocated to, and managed as, one of six types of appropriation.

Each appropriation also has a defined scope that limits the uses or activities for which the expenses or capital expenditure can be incurred. The scope should be sufficient on its own to establish the nature and extent of the authority to incur expenses or capital expenditure. The wording of the appropriation scope should achieve the balance between being sufficiently precise to act as an effective constraint against non-authorised activities and not so specific that it inadvertently limits activity intended to be authorised.

In most cases an appropriation also limits the amount of expenses or capital expenditure that can be incurred, and the time period within which those expenses or capital expenditure can be incurred.

Aside from the very limited exclusions provided for in the PFA, the amount of expense or capital expenditure authorised by an appropriation is measured in accordance with generally accepted accounting practice.

As generally accepted accounting practice does not normally treat GST as an expense, appropriation amounts usually exclude GST. Prior to 2005/06, however, appropriations included applicable GST. All prior-year appropriation data - such as in the Summary of Trends table in the Estimates and the Summary of Financial Activity table for each Vote in Information Supporting the Estimates - have been adjusted to exclude GST and allow appropriate comparison.

Responsibility for Appropriations

Each appropriation is the responsibility of a designated Minister, who controls the right to use that appropriation within the limits authorised by Parliament. A department is also assigned to administer that appropriation in accordance with the Minister's wishes concerning its use.

A Vote is a group of appropriations (and can be a single appropriation) administered by a single department. Different appropriations within a Vote may be the responsibility of different Ministers.

Types of Appropriation#

The PFA provides for six types of appropriation. Four appropriation types authorise the incurring of expenses; one type authorises the incurring of capital expenditure; the remaining type authorises both.

These appropriation types can be further differentiated by whether the expenses or capital expenditure are departmental or non-departmental transactions.

Appropriation Type Transaction Status Description
Output Expenses Departmental Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).
Non-Departmental Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.
Benefits and Other Unrequited Expenses Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in transferring resources (generally to individuals for their personal benefit) for which the Crown receives nothing directly in return.

Examples include the Unemployment Benefit, student allowances and various scholarships and awards.

Borrowing Expenses Departmental

Authorises the incurring of interest or other financing expenses for loans made to a department or an Office of Parliament, or public securities (undertakings that represent part of the public debt) issued by a department or an Office of Parliament.

In practice, limitations on the rights of departments to borrow or issue securities mean that these are likely to be incurred only by Offices of Parliament.

Non-Departmental

Authorises the incurring of interest or other financing expenses for loans made to the Crown (excluding departments), or public securities (undertakings that represent part of the public debt) issued by the Crown.

Crown debt management is centralised, which means that most debt-servicing expenses appear in Vote Finance.

Other Expenses Departmental

Authorises expenses to be incurred by a department or an Office of Parliament that are not either output expenses or borrowing expenses.

Other expenses should be used only for events that cannot be related back to output production, such as redundancy costs arising from a government decision to cease purchasing certain types of outputs, or a loss on sale of assets made surplus by departmental restructuring.

Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) that are not structured or managed as output expenses, benefits or other unrequited expenses, or borrowing expenses.

Other expenses is the residual expense appropriation type, which should not be used where an appropriation could be better classified or managed as one of the other appropriation types (eg, as output expenses).

Examples include disposal of an asset for less than market value, grants to community organisations, subscriptions for membership of international bodies and remuneration of independent statutory officers.

Capital Expenditure Departmental Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.
Non-Departmental Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.
Expenses or Capital Expenditure Incurred by an Intelligence and Security Department Departmental Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.

Types of Output Expense Appropriations#

A number of variations are possible for output expense appropriations. In particular, the constraint on the amount of expense that can be incurred is not always a fixed sum; and an output expense appropriation can cover more than one class of outputs.

Output Expense Appropriation Type and Authority Description, Constraints on Form and Typical Application

Standard Output Expense Appropriation

(section 7(1)(a), Public Finance Act 1989)

Departmental or non-departmental:  Authorises a department or an Office of Parliament to incur expenses in supplying a specified class of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase a specified class of outputs.

Annual or multi-year:  The authority lapses at the end of the financial year or multi-year period specified.

Single output class only:  The scope is limited to a single class of outputs (defined as a grouping of similar outputs).

Amount limited by Appropriation Act:  The amount of a standard output expense appropriation is limited to a set amount of New Zealand dollars specified in an Appropriation Act.

Typical application:  The normal or default form for an output expense appropriation, used for a wide range of outputs for which the flexibility offered by the other types of output expense appropriation is not required.

Multi-Class Output Expense Appropriation (MCOA)

(section 7(3)(b), Public Finance Act 1989)

Departmental or non-departmental:  Authorises a department or an Office of Parliament to incur expenses in supplying more than one specified class of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase more than one specified class of outputs.

A proposed MCOA must be approved by the Minister of Finance before it is presented in the Estimates.  The information supporting the Estimates must explain why the Minister has allowed those classes of outputs to be grouped in one appropriation.

Annual or multi-year:  The authority lapses at the end of the financial year or multi-year period specified.

Multiple output classes:  The scope of an MCOA is determined by the combined scope of each of the output classes included in that appropriation.

Amount limited by Appropriation Act:  The amount of an MCOA is limited to a set amount of New Zealand dollars specified in an Appropriation Act. The amount of expense that can be incurred in relation to each component output class is flexible within the total amount of the MCOA, although expenses must be separately forecast and reported for each individual class in the Estimates, Information Supporting the Estimates, Supplementary Estimates and the department's annual report.

Typical application:  An MCOA is used where it is appropriate to give the responsible Minister or department ongoing discretion over the output mix across two or more classes of outputs. Such discretion will most commonly be sought where the output classes contribute to a common outcome, or use a common or closely related set of inputs or processes, and the circumstances that determine the appropriate output choice or mix are likely to vary during the appropriation period.

Revenue-Dependent Appropriation (RDA)

(section 21(1), Public Finance Act 1989)

Departmental only:  Authorises a department or an Office of Parliament to incur expenses in supplying a specified class of outputs (goods and services) that are not paid for directly by the Crown.

A proposed RDA must be approved by the Minister of Finance before it is presented in the Estimates.  Each class of outputs for which an RDA is approved is listed in an Appropriation Act for the relevant financial year.

Annual only:  The authority lapses at the end of the financial year specified.

Single output class only:  The scope of an RDA is limited to a single class of outputs (defined as a grouping of similar outputs).

Amount limited by amount of revenue earned:  The amount of an RDA is limited to the amount of revenue earned by a department or an Office of Parliament from other departments or from parties other than the Crown during a financial year.  The Minister of Finance can further direct a department to incur expenses to a level lower than the amount of revenue earned, though such directions have been rare.

Typical application:  An RDA provides flexibility to respond to unanticipated changes in the level of external demand for a class of outputs, where the full cost of the outputs is met by external parties and not the Crown.

Department-to-Department Appropriation (DDA)

(section 20(2), Public Finance Act 1989)

Departmental only:  Authorises a department or an Office of Parliament to incur expenses in supplying specified outputs (goods and services) paid for by another department.

Creation of a DDA requires an agreement between two departments. Implicitly, it also requires the approval of the Minister who will become responsible for the appropriation - namely, the Minister responsible for the supplying department - as the agreement has implications for the scope and risk of that department's operations.

Annual or multi-year:  The period of a DDA will depend on the negotiated terms of the agreement.

Single or multiple output class(es):  The scope of a DDA (and hence whether it covers one or more classes of outputs) will depend on the way in which the agreement defines what is to be delivered. In most cases, an agreement that provides for a range of different outputs is better treated as creating several single-class DDAs.

Amount limited by departmental agreement:  The amount of a DDA is limited to either the amount of revenue earned from the commissioning department, or the cost incurred by the supplying department in providing those outputs (if that cost is less than the amount of revenue earned under the agreement).

Typical application:  DDAs are intended to make collaboration between departments easier by reducing the time and effort otherwise required to obtain or adjust the relevant appropriations, while also allowing a commissioning department to retain full control over the resources it provides.

The use of a DDA is not confined to bilateral agreements. A set of related DDAs could be used to enable one department to co-ordinate and manage the work of several departments that must together contribute to providing an integrated service to third parties, or to pool contributions from several departments to enable another department to provide a specific service to or on behalf of those departments.

Appropriation Period#

The length of the appropriation period affects how appropriations are presented in the Estimates and Supplementary Estimates. Three kinds of appropriation can be distinguished on the basis of period - annual and multi-year (as referred to in the above table on output expense appropriations), and permanent:

  • Annual Appropriations - Most appropriations listed in the Estimates and Supplementary Estimates allow expenses or capital expenditure to be incurred only during a particular financial year. The annual amounts for which parliamentary authority is sought are shown in bold type in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote. The amounts for RDAs and annual DDAs are forecasts only, and so are not shown in bold type.
  • Multi-Year Appropriations (MYAs) - The PFA also permits appropriations that allow expenses or capital expenditure to be incurred during a specified period that spans the whole or parts of more than one financial year, but no more than five financial years. The details of each MYA, including its commencement date and expiry date, are specified in Details of Multi-Year Appropriations in the Estimates and Supplementary Estimates for relevant Votes.
  • Permanent Appropriations (sometimes referred to as permanent legislative authorities or PLAs) -Permanent appropriations are authorised by legislation other than an Appropriation Act and continue in effect until revoked by Parliament. Generally the authorising legislation will impose limits on the scope of the appropriation and not its amount. The usual legislative wording allows for expenses or capital expenditure to be incurred for the purpose specified in the legislation “without further appropriation than this section”. Details of permanent appropriations are included in Details of Annual and Permanent Appropriations in the Estimates and Supplementary Estimates for each Vote for completeness, though the amount specified is a forecast rather than a limit. The amounts of permanent appropriations are therefore not shown in bold type. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

 

Guide to Reading Information Supporting the Estimates#

 

The Information Supporting the Estimates for each of the 10 sectors comprises five components, each of which is briefly described, below.

Sector Overview

The first component of the Information Supporting the Estimates may include a statement, agreed by all Ministers responsible for appropriations in Votes included in the sector, that presents an overview of the sector and a high-level summary of the Government's expectations and priorities. The Overview also includes Ministerial and Chief Executive Statements of Responsibility for the information provided on future operating intentions of departments in the sector.

Performance Information for Appropriations in Each Vote

The second component of the Information Supporting the Estimates presents performance information relating to each appropriation, ordered by Vote and appropriation type.

The title page for each Vote specifies the Minister(s) responsible for existing and proposed appropriations in the Vote, the administering department for the Vote, and the Responsible Minister for that department. The performance information meets the requirements of sections 15 and 41(1)(e) of the PFA and contains up to six parts. If particular information is not applicable to a Vote or a specific appropriation or type, or is otherwise unavailable, the relevant heading is not included.

Part 1 - Summary of the Vote

The Summary of the Vote comprises:

  • Part 1.1 - Overview of the Vote - A plain-language summary of the focus of the appropriations through a brief explanation of the Vote. The Overview also appears at the start of the Vote in the Estimates.
  • Part 1.2 - High-Level Objectives of the Vote - The objectives for the Vote presented through links and relationships between the appropriations and high-level priorities and outcomes to which they contribute. Where applicable, priorities and outcomes are drawn from the Government's themes and sub-themes, and published strategy documents. Links may also be made to specific Government objectives.
  • Part 1.3 - Trends in the Vote - A presentation of actual and estimated trends in the Vote, comprising:
    • Summary of Financial Activity - A table showing financial information over the preceding five years (actual, budgeted or estimated actual), the current (Budget) year and the following three years (estimated) for types of appropriations and Crown revenue and capital receipts.
    • Budget Policy Initiatives - A table showing how new initiatives (and associated expenses or capital expenditure) are allocated to appropriations in the Vote. References are included where appropriations in other Votes are affected by the same initiative.
    • Analysis of Significant Trends - High-level analysis of appropriations and of Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, with graphical presentations and explanations of significant changes.
  • Part 1.4 - Reconciliation of Changes in Appropriation Structure - A table providing a reconciliation and explanation of changes in the structure or classification of appropriations made in the Budget year. These changes are restated for the previous financial year to facilitate comparison.

 

Part 2 - Details and Expected Performance for Output Expenses

This Part provides further detail about appropriations and expected performance for output expenses.

  • Part 2.1 - Departmental Output Expenses - Intended impacts, outcomes or objectives are presented for departmental output expense appropriations in the Vote. This is followed by information on each appropriation, including its scope, a table showing expenses and revenue (distinguishing between revenue from the Crown and others), a statement of reasons for change in the appropriation (if material), and tables detailing performance measures and standards for significant aspects of expected output performance, any conditions on use of the appropriation, any memorandum accounts (which record accumulated surpluses and deficits incurred in the provision of outputs on a full cost-recovery basis), and any current and past policy initiatives affecting the appropriation.

Information on impacts and outcomes or objectives to which the outputs contribute is provided where the relationships are direct or involve a small number of output expenses. Where the relationships are more complex, this information will be included in high-level objectives of the Vote outlined in Part 1.2. Conditions of use include administrative criteria and processes contained in legislation, regulations and Government decisions, which may be referenced in scope statements or performance measures. The current and past policy initiatives table provides a five-year history of announced initiatives that impact on the Budget year, the preceding year and the following three years.

For MCOAs, an explanation is provided as to why the classes of outputs have been grouped under a single appropriation, and the scope statement, expenses and revenue, and performance information is presented for each output class. Data provided for MYAs enables the original appropriation to be reconciled to the adjusted level if changes have been approved or are proposed, and the balance remaining to be derived taking account of actual or estimated actual expenses incurred to date.

The appropriation scope, expenses and revenue, and output performance measures and standards match information required to be included in a department's Statement of Forecast Service Performance with respect to departmental output expense appropriations used by the department.

  • Part 2.2 - Non-Departmental Output Expenses - This sub-part contains comparable information to that presented in Part 2.1 on departmental output expense appropriations. The main differences are that details of third parties' other revenue is not relevant and a summary of service providers is included.

The service providers table shows Crown entities and non-governmental organisations providing outputs funded through the Vote, and (where applicable) the mechanism for reporting actual performance to Parliament and the expiry of the Government's resource commitment. The reporting mechanisms are typically an entity's annual report or a report by the responsible Minister required by section 32A of the PFA. Where the provider is a Crown entity that is required to produce a Statement of Intent, its annual report may contain more detailed performance information at the output class or output level. ‘Section 32A’ reports include a statement of service performance in relation to the appropriation.

Part 3 - Details for Benefits and Other Unrequited Expenses

Part 3 provides performance information about appropriations for benefits and other unrequited expenses incurred by the Crown. No departmental transactions arise under this appropriation type.

  • Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses - Information on each appropriation includes impacts and outcomes intended to be achieved, a scope statement, expense components, reasons for material changes, any conditions of use, and details of any current and past policy initiatives over the five years up to and including the Budget year.

 

Guide to Reading Information Supporting the Estimates (continued)#

 

Part 4 - Details for Borrowing Expenses

This Part provides detail about appropriations for borrowing expenses. No departmental borrowing expense appropriations exist at present.

  • Part 4.2 - Non-Departmental Borrowing Expenses - The set of performance information for these appropriations is the same as that for non-departmental benefits and other unrequited expenses, except that conditions on use of an appropriation are not specified.

Part 5 - Details and Expected Results for Other Expenses

Part 5 provides detail about appropriations for:

  • Part 5.1 - Departmental Other Expenses - It is uncommon for this category of appropriation to be used. In the few cases where it occurs, the performance information is the same as that for non-departmental other expense appropriations except for a summary of reporting mechanisms.
  • Part 5.2 - Non-Departmental Other Expenses - Information on other expenses incurred by the Crown covers intended impacts and outcomes, appropriation scope, expenses analysed by component, reasons for material changes in the appropriation, expected results and standards, any conditions on use, any current and past policy initiatives, and a summary of mechanisms for reporting actual performance to Parliament.

Part 6 - Details and Expectations of Capital Expenditure

This Part provides details about appropriations for capital expenditure.

  • Part 6.1 - Departmental Capital Expenditure - The purchase or development of assets by a department is made under a permanent appropriation authorised by section 24(1) of the PFA. Capital expenditure is defined in section 2 as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories. The appropriation appears in the Vote that contains appropriations belonging to the department's Responsible Minister.

Information is provided on intended impacts and outcomes of the appropriation, its scope, expenditure analysed by standard asset categories, reasons for material changes in the appropriation, and expected results. The scope statement is in a standard form for all departments. The performance information relates to the department as a whole and is not limited to any specific capital injection.

  • Part 6.2 - Non-Departmental Capital Expenditure - Performance information for capital expenditure incurred by the Crown is the same as that for departmental capital expenditure except for not detailing asset categories and the addition of any conditions on use of the appropriation, any current and past policy initiatives, and a summary of the mechanism for reporting to Parliament.

The scope statement indicates the form of interest or asset acquired by the Crown, such as a capital injection (equity), loan or shares.

Overview of Performance Information

The following table summarises the performance information sought for a ‘standard’ appropriation in each sub-part.

Standard Appropriations Part 2.1 Part 2.2 Part 3.2 Part 4.2 Part 5.1 Part 5.2 Part 6.1 Part 6.2
For each sub-part:                
Intended impacts, outcomes or objectives
For each appropriation:                
Scope of appropriation
Expenses and revenue N/A N/A N/A N/A N/A N/A N/A
Expenses N/A N/A N/A
Capital expenditure N/A N/A N/A N/A N/A N/A
Reasons for change in appropriation
Output performance measures and standards N/A N/A N/A N/A N/A N/A
Expected results N/A N/A N/A N/A
Conditions on use of appropriation N/A N/A
Memorandum account N/A N/A N/A N/A N/A N/A
Current and past policy initiatives N/A
Summary of service providers N/A N/A N/A N/A N/A N/A N/A
Reporting mechanism N/A N/A N/A N/A N/A N/A

Information on reasons for change, conditions of use, current and past policy initiatives, and reporting mechanisms appears where applicable or material. Memorandum accounts are relevant only in Part 2. Some variations exist for non-standard appropriations, including MCOAs in Parts 2.1 and 2.2 and MYAs in Parts 2.2, 5.2 and 6.2. Furthermore, performance information may not be available for some appropriations.

Guide to Reading Information Supporting the Estimates (continued)#

Statement of Forecast Service Performance of Departments

The third component of the Information Supporting the Estimates of Appropriations comprises the Statement of Forecast Service Performance of each department included in the sector, by reference to performance information set out in Part 2.1 of Votes containing appropriations proposed to be used by the department. This Statement is of particular importance for those departments proposing to use appropriations in more than one Vote.

Forecast Financial Statements of Departments

The fourth component of the Information Supporting the Estimates begins with a Statement of Common Accounting Policies applicable to all departments. The forecast financial statements for the forthcoming financial year for each department covered by the sector includes a:

  • Statement of Forecast Financial Performance
  • Statement of Forecast Changes in Taxpayers' Funds
  • Statement of Forecast Financial Position
  • Statement of Forecast Cash Flows
  • Statement of Significant Assumptions.

Each department will include a Statement of Entity-Specific Accounting Policies detailing policies for any matters not addressed by the Statement of Common Accounting Policies (such as a “going concern” statement) or where its policies are more specific than the common policies (such as capitalisation thresholds and estimated useful lives of individual classes of assets). Notes to the Financial Statements provide additional details to assist interpretation of the accounts and to meet disclosure requirements outlined in legislation and accounting standards.

Statements of Intent of Departments

The final component of the Information Supporting the Estimates presents the Statements of Intent of departments included in each sector. These Statements contain information required by section 40 of the PFA. They focus on the medium term and generally cover:

  • Nature and scope of the department's functions - A brief high-level description of the department's functions, addressing its role(s) and purpose and how it intends fulfilling them.
  • Strategic direction - impacts and outcomes - A brief high-level overview of the department's strategic direction covering both the impacts and outcomes the department is seeking to achieve (or contribute to) and the strategic environment in which the department operates through, in particular, its responses to the Government's priorities.
  • Operating intentions - Information that describes how the department intends to achieve (or contribute to) those desired impacts and outcomes through its operations. This section should also include the main measures and standards the department will use to assess and demonstrate what it has achieved, including measures of outcome achievement, impact and cost-effectiveness.
  • Managing in a changeable operating environment - Information on the risks to achievement of the desired outcomes and priorities, and the department's mitigation strategies.
  • Assessing organisational health and capability - The department's intentions for building and strengthening its internal capability, including its responses to the development goals for the State services and its strategic approach to managing its asset base and forecast capital expenditure in the medium term.
  • Additional information and statutory reporting requirements - As required either by the responsible Minister or Minister of Finance, or by specific legislation.

 

Terms and Definitions#

 

The table below contains terms that are used in the Estimates and the Information Supporting the Estimates.

Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Crown revenue and capital receipts Flows accounted for as revenue and capital receipts on behalf of the Crown rather than as departmental revenue.
DDA Department-to-department appropriation -  as authorised by section 20(2) of the PFA.
Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year.  Expenses are an accrual concept measured in accordance with generally accepted accounting practice.
GST Goods and services tax.  Appropriations are stated GST-exclusive.
MCOA Multi-class output expense appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Outcomes States or conditions of society, the economy or the environment, including changes in those states or conditions.
Outputs Goods or services supplied by departments and other entities to external parties.  Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989
PLA Permanent legislative authority - a traditional term for a permanent appropriation, ie, one that is authorised for an indefinite period by legislation other than an Appropriation Act.
Minister The Minister responsible for specific appropriations being sought within a Vote.  As several Ministers may hold appropriations within a single Vote, each appropriation has a tag (M1, M2, etc) identifying the Minister responsible for that line item.
RDA Revenue-dependent appropriation - as authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity.  In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the Responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown.  These flows are accounted for as departmental revenue.  Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties.  Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by one department.

 

The suite of Budget 2008 documents can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2008. Documents providing guidance on the PFA and the public sector financial management system can be accessed in the Public Finance Overviews section of the Treasury's website: www.treasury.govt.nz/publications/guidance/publicfinance.

Sector Overview - Social Development and Housing Sector#

Ministerial Statements of Responsibility

Each of us is satisfied that the information on future operating intentions provided by our respective departments and included in the Information Supporting the Estimates for the Social Development and Housing Sector is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the government.

Hon Shane Jones
Responsible Minister for the Department of
Building and Housing
16 April 2008

Hon Ruth Dyson
Responsible Minister for the Ministry of
Social Development
16 April 2008

 

Chief Executive Statements of Responsibility#

Ministry of Social Development

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Social Development and Housing Sector relating to the Ministry of Social Development and for the Vote/Votes for which the Ministry of Social Development is the administering department. Specifically, this information is contained in the Ministry of Social Development's statement of forecast service performance, forecast financial statements and Statement of Intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2008/09 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

Nick Gale
Chief Financial Officer
Ministry of Social Development
16 April 2008
Counter-signed

Peter Hughes
Chief Executive
Ministry of Social Development
16 April 2008

 

Department of Building and Housing

In signing this statement, I acknowledge that I am responsible for the information contained in the Information Supporting the Estimates for the Social Development and Housing Sector relating to the Department of Building and Housing and for the Vote/Votes for which the Department of Building and Housing is the administering department. Specifically, this information is contained in the Department of Building and Housing's statement of forecast service performance, forecast financial statements and Statement of Intent.

This information has been prepared in accordance with the Public Finance Act 1989. It is also consistent with the proposed appropriations set out in the Appropriation (2008/09 Estimates) Bill, as presented to the House of Representatives in accordance with section 13 of the Public Finance Act 1989, and with existing appropriations and financial authorities.

David Pearson
Chief Advisor Finance, Planning and
 Administration
Department of Building and Housing
16 April 2008
Counter-signed

Katrina Bach
Chief Executive
Department of Building and Housing
16 April 2008

 

Performance Information for Appropriations Vote Social Development#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Associate Minister for Social Development and Employment (CYF) (M10), Minister for Social Development and Employment (M63)

ADMINISTERING DEPARTMENT: Ministry of Social Development

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

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister for Social Development and Employment is responsible for the appropriations in the Vote for the 2008/09 financial year covering the following:

  • a total of over $412 million on Child Youth and Family related services including responding to and preventing child abuse and neglect, managing adoptions and youth justice services
  • a total of nearly $569 million on services to assist people into employment, and to assess and pay the appropriate entitlement of social assistance to beneficiaries, and to protect the integrity of the benefit system, including collection of debt
  • a total of over $83 million on specialised services, including services for students, seniors and administration of community services and SuperGold cards
  • a total of nearly $52 million on social policy advice and crown entity monitoring
  • a total of over $39 million on leadership and coordination services to support and strengthen families, communities and whanau
  • a total of over $273 million on services from other organisations
  • a total of over $15 million purchasing services from the Children's Commissioner, the Retirement Commissioner, and the Families Commission
  • a total of over $773 million on debt write-downs, and a series of assistance programmes
  • a total of $7,739 million on payments of New Zealand Superannuation
  • a total of $3,882 million on payments for the working age benefits - Domestic Purposes Benefit (DPB), Unemployment, Sickness, Invalid's and Widow's
  • a total of $1,486 million on payments for assistance with expenses related to accommodation, disability, hardship and entering or remaining in the workforce
  • a total of $494 million on payments to assist people to obtain a qualification or independent youth to continue education/training or obtain work
  • a total of $320 million on other forms of financial assistance such as childcare, care of unsupported children, payments to Australia and special circumstances
  • a total of $1,296 million on payments for student loans, and
  • a total of $122 million on advances of benefits and other recoverable payments to assist with hardship.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Social Development
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme: Families - Young and Old Strong Families - Working Age People

Departmental Output Expenses

Care and Protection Services, Collection of Balances Owed by Former Clients and Non-beneficiaries, Development and Funding of Community Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Services to Protect the Integrity of the Benefit System, Tailored Sets of Services to Help People Into Work or Achieve Independence, and Vocational Skills Training.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, Life Skills and Employment-Related Training Activities, Retirement Commissioner, Student Placement Services, and Vocational Services for People with Disabilities.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Employment-Related Training Assistance, Hardship Assistance, Invalid's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, Transition to Work, Transitional Supplement, Unemployment Benefit and Emergency Benefit, and Widow's Benefit.

Non-Departmental Other Expenses

Community Labour Market Development Assistance, Employment Assistance, and Out of School Care Programmes.

Non-Departmental Capital Expenditure

Student Loans.
Theme: Families - Young and Old Strong Families - Families and Whanau

Departmental Output Expenses

Family and Community Services, Management of Service Cards (MCOA) - Administration of Community Services Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.

Non-Departmental Output Expenses

Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities, Strong Families, and Student Placement Services.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, and Special Circumstance Assistance.

Non-Departmental Other Expenses

Contingency and Innovation Fund.

Non-Departmental Capital Expenditure

Student Loans.
Theme: Families - Young and Old Healthy Confident Kids - Children and Young People

Departmental Output Expenses

Adoption Services, Care and Protection Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Prevention Services, and Youth Justice Services.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Family Wellbeing Services, Life Skills and Employment-Related Training, Strengthening Providers and Communities, and Student Placement Services.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.

Non-Departmental Other Expenses

Contingency and Innovation Fund, Debt Write-downs, Employment Assistance, Out of School Care Programmes.

Non-Departmental Capital Expenditure

Student Loans.
Theme: Families - Young and Old Safe Communities - Communities, Hapu and Iwi

Departmental Output Expenses

Family and Community Services, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.

Non-Departmental Output Expenses

Connected Communities, and Strengthening Providers and Communities.

Non-Departmental Benefits and Other Unrequited Expenses

Childcare Assistance, Family Start/NGO Awards, Special Annuities, Special Circumstance Assistance, and Study Scholarships and Awards.

Non-Departmental Other Expenses

Community Labour Market Development Assistance, and Out of School Care Programmes.
Theme: Families - Young and Old Positive Ageing - Older People

Departmental Output Expenses

Family and Community Services, Income Support and Assistance to Seniors, Management of Service Cards (MCOA) - Administration of Community Services Card output class and Management of SuperGold Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.

Non-Departmental Output Expenses

Assistance to Disadvantaged Persons, and Retirement Commissioner.

Non-Departmental Benefits and Other Unrequited Expenses

Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, New Zealand Superannuation, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, and Unemployment Benefit and Emergency Benefit.

Objectives of the Vote

Vote Social Development provides, on behalf of the Government, a significant contribution to the theme of Families - Young and Old.

Families - Young and Old focuses on providing all families with the support and choices they need to be secure and to be able to reach their full potential. Vote Social Development contributes to the Families - Young and Old theme in the following ways:

  • It helps children to get the best start in life by developing and implementing early intervention services to support vulnerable children and families from before birth through to the transition to school.
  • It supports strong families by coordinating action to minimise family violence.
  • It supports older New Zealanders age positively by providing New Zealand Superannuation and it provides a safety net for people facing difficulties through the provision of income support.

The impacts that the appropriations in Vote Social Development are intended to have on different groups in society are reflected in the Ministry of Social Development's outcomes:

  • Children and Young People.
  • Working Age People.
  • Older People.
  • Families and Whanau.
  • Communities, Hapu and Iwi.

The table above maps the Ministry of Social Development's outcomes and appropriations to the Government's theme of Families - Young and Old, and the Government's Outcomes and Objectives. Most of the Ministry's appropriations map to more than one Government Outcome.

Summary of Financial Activity

Summary of Financial Activity - Social Development
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 1,029,569 1,144,937 1,255,523 1,302,499 1,390,760 1,390,760 1,155,661 288,666 1,444,327 1,457,678 1,497,099 1,543,132
Benefits and Other Unrequited Expenses 11,988,075 12,068,375 12,401,311 12,837,285 13,403,595 13,365,335 N/A 13,921,179 13,921,179 14,629,966 15,285,968 16,129,934
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 105,527 109,266 451,019 620,740 741,550 741,550 - 773,400 773,400 796,490 829,525 863,409
Capital Expenditure 1,170,833 1,147,341 1,221,079 1,343,077 1,413,277 1,396,617 119,133 1,418,395 1,537,528 1,598,087 1,665,842 1,751,957
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

14,294,004 14,469,919 15,328,932 16,103,601 16,949,182 16,894,262 1,274,794 16,401,640 17,676,434 18,482,221 19,278,434 20,288,432

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 70,099 70,582 50,617 52,872 91,590 91,590 N/A N/A 95,564 99,762 103,420 106,750
Capital Receipts 463,646 463,070 481,740 501,704 498,170 498,160 N/A N/A 519,576 549,105 568,990 589,980

Total Crown Revenue and Receipts

533,745 533,652 532,357 554,576 589,760 589,750 N/A N/A 615,140 648,867 672,410 696,730

Budget Policy Initiatives

Budget Policy initiatives - Social Development
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Alignment of UCB/OB weekly rates with the FCA weekly board rates Orphan's Benefit/Unsupported Child's Benefit (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 1,781 7,314 7,580 7,898
Skills Investment Subsidy Expenditure Reduction Employment Assistance (M63)
Non-Departmental Other Expenses
- (1,781) (7,314) (7,580) (7,898)
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement Adoption Services (M63)
Departmental Output Expenses
258 264 264 264 264
Care and Protection Services (M63)
Departmental Output Expenses
5,245 5,371 5,371 5,371 5,371
Development and Funding of Community Services (M63)
Departmental Output Expenses
125 128 128 128 128
Prevention Services (M63)
Departmental Output Expenses
127 130 130 130 130
Youth Justice Services (M63)
Departmental Output Expenses
1,820 1,864 1,864 1,864 1,864
Expanding the Community Organisation Grant Scheme Vocational Skills Training (M63)
Departmental Output Expenses
- (2,065) (2,192) (2,065) (2,065)
Employment Assistance (M63)
Departmental Output Expenses
- (500) (373) (500) (500)
Historical Claims Policy Advice and Ministerial Servicing (M63)
  • Social Policy Advice output class
Departmental Output Expenses
- 5,283 6,783 - -
KiwiSaver financial education programme Retirement Commissioner (M63)
Non-Departmental Output Expenses
- 1,900 1,900 2,000 2,000
Longitudinal Study of New Zealand Children and Families Policy Advice and Support to Ministers MCOA (M63)
  • Social Policy Advice output class
Departmental Output Expenses
- - 4,750 3,100 -
Operating Funding for Additional Beds at Youth Justice Central Youth Justice Services (M63)
Departmental Output Expenses
- - 1,309 2,617 2,617
Youth Justice Central Residential Facility: Capital and Operating Costs Youth Justice Services (M63)
Departmental Output Expenses
- 1,509 6,754 11,089 11,089
Net Asset Schedule of the Ministry of Social Development (M63)
Capital Expenditure to be Incurred by the Department
- 24,600 13,381 - -
Reduced Departmental outputs to partially fund Community Partnership Fund Services to Minimise the Duration of Unemployment and Move People into Work (M63)
Departmental Output Expenses
(1,100) - - - -
Reinstatement of Care and Protection Baseline Care and Protection Services (M63)
Departmental Output Expenses
- 6,800 - - -
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas Income Support and Assistance for Seniors (M63)
Departmental Output Expenses
- 1,741 233 227 228
New Zealand Superannuation (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 297 1,245 1,303 1,349
Student Loans Redesign Management of Student Support (M63)
Departmental Output Expenses
- 800 - - -
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) Family and Community Services (M63)
Departmental Output Expenses
- 3,972 5,262 6,132 6,902
Strong Families (M63)
Non-Departmental Output Expenses
- 25,016 66,847 119,256 175,206
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) Vocational Skills Training (M63)
Departmental Output Expenses
- (5,581) (5,581) (5,581) (5,581)
Training Incentive Allowance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
(14,502) - - - -
Employment Related Training Assistance (63)
Non-Departmental Benefits and Other Unrequited Expenses
  (17,673) (17,646) (17,454) (17,070)
Employment Assistance (M63)
Non-Departmental Other Expenses
- (5,000) (9,500) (10,000) (10,000)
Working New Zealand Health and Innovation Fund Drawdown Services to Minimise the Duration of Unemployment and Move People into Work (M63)
Departmental Output Expenses
4,586 - - - -
Expansion of Bonded Merit Scholarship Scheme Management of Student Support (M63)
Departmental Output Expenses
- 100 130 170 215
Study Scholarships and Awards (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 1,500 3,000 4,500 5,100
Debt Write-downs (M63)
Non-Departmental Other Expenses
- (164) (328) (493) (558)
Student Loans (M63)
Non-Departmental Capital Expenditure
- (405) (810) (1,215) (1,377)
Increasing the student allowance parental income threshold by 10% Management of Student Support (M63)
Departmental Output Expenses
- 730 690 745 775
Accommodation Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 115 237 249 262
Student Allowances (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 3,785 8,207 8,464 8,727
Unemployment Benefit and Emergency Benefit (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 660 1,367 1,463 1,565
Debt Write-downs (M63)
Non-Departmental Other Expenses
- (414) (899) (927) (956)
Student Loans (M63)
Non-Departmental Capital Expenditure
- (1,022) (2,216) (2,285) (2,356)
Increasing the Student Loan Scheme living cost component to $155 per week Management of Student Support (M63)
Departmental Output Expenses
- 370 - - -
Debt Write-downs (M63)
Non-Departmental Other Expenses
- 2,525 5,724 7,117 7,855
Student Loans (M63)
Non-Departmental Capital Expenditure
- 6,226 14,115 17,550 19,370
Lowering the age limit for student allowance parental income testing by one year Management of Student Support (M63)
Departmental Output Expenses
- 1,285 950 995 1,045
Accommodation Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 159 325 338 352
Student Allowances (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 9,153 19,638 20,833 22,041
Unemployment Benefit and Emergency Benefit (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 911 1,876 1,984 2,097
Debt Write-downs (M63)
Non-Departmental Other Expenses
- (1,002) (2,150) (2,281) (2,413)
Student Loans (M63)
Non-Departmental Capital Expenditure
- (2,471) (5,302) (5,625) (5,951)
Student Achievement Component: Access in priority areas Accommodation Assistance (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 30 56 29 (25)
Student Allowances (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 1,738 3,444 2,073 (921)
Unemployment Benefit and Emergency Benefit (M63)
Non-Departmental Benefits and Other Unrequited Expenses
- 170 324 171 (152)
Debt Write-downs (M63)
Non-Departmental Other Expenses
- 2,766 3,646 2,846 (1,840)
Student Loans (M63)
Non-Departmental Capital Expenditure
- 6,821 8,991 7,019 (4,538)
Total Initiatives   (3,441) 82,422 141,944 181,601 220,249

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Social Development, are discussed briefly below.

From 1 July 2008 Vote Child, Youth and Family Services merges with Vote Social Development. Data in Part 1.3 Trends in the Vote includes the trends in Vote Child, Youth and Family Services for the period 2003/04 to 2007/08 before the Votes were merged. This data is also reflected in the relevant graphs below, but the numbers quoted in the written trend analyses for 2003/04 to 2007/08 refer only to changes in Vote Social Development before the Votes were merged.

Figure 1 - Trends in total voted and actual expenses and capital expenditure

Trends in total voted and actual expenses and capital expenditure
Trends in total voted and actual expenses and capital expenditure
Source: Ministry of Social Development

The movements in departmental and non-departmental appropriations in Vote Social Development, which are detailed in the Summary of Financial Activity table above, are largely driven by movements in Benefits and Other Unrequited Expenses and Capital Expenditure.

Departmental Output Expenses

Figure 2 - Trends in departmental output expenses

Departmental Output Expenses
Departmental Output Expenses
Source: Ministry of Social Development

Departmental outputs increased between 2003/04 and 2004/05 largely as a result of new initiatives. The most significant was the implementation of the Working for Families reforms.

Departmental output expenses increased by $48.577 million between 2004/05 and 2005/06. The most significant increase was $13.098 million transferred from Vote Employment to administer Community Labour Market Development Assistance. The departmental costs of a number of new initiatives - for example Addressing Long Term Unemployed, New Service for Sickness and Invalid's Beneficiaries, and Early Intervention - also contributed to the increase.

Departmental output expenses decreased by $11.174 million between 2005/06 and 2006/07 mainly because after the merger between the Ministry of Social Development and the Department of Child, Youth and Family Services on 1 July 2006. There was no need to appropriate funding for Information Technology Services to the Department of Child, Youth and Family Services in Vote Social Development. Accordingly this departmental output expense is no longer reported.

Departmental output expenses increased by $22.369 million between 2006/07 and 2007/08 mainly because of additional funding for Working New Zealand.

Departmental output expenses increased by $448.701 million between 2007/08 and 2008/09 mainly because Vote Child, Youth and Family Services is being merged with Vote Social Development, with effect from 1 July 2008 (approximately $420 million).

Non-Departmental Output Expenses

Figure 3 - Trends in non-departmental output expenses

Non-Departmental Output Expenses
Non-Departmental Output Expenses
Source: Ministry of Social Development

Non-departmental outputs increased by $16.738 million between 2003/04 and 2004/05 as a result of the establishment of the Families Commission and additional funding for Vocational Services for People with Disabilities.

Non-departmental outputs increased by $39.638 million between 2004/05 and 2005/06. The main reasons for this increase were the transfer of funding from Vote Child, Youth and Family Services for services purchased from Non-Government Organisations (NGOs) that fitted better with the outcomes sought from Vote Social Development ($21.835 million) and an increase in the funding for Vocational Services for People with Disabilities of $13.163 million.

Non-departmental outputs increased by $31.255 million between 2005/06 and 2006/07. The main reasons for this increase were a further transfer of funding from Vote Child, Youth and Family Services for services purchased from NGOs that fitted better with the outcomes sought from Vote Social Development ($10.762 million) and a transfer of funding from Vote Health for services purchased from NGOs ($7.454 million).

Non-departmental outputs increased by $25.840 million between 2006/07 and 2007/08. The main reasons for this were the transfer of contract management for Children's Health Camps from Vote Health ($12.183 million) and new initiatives funding of $9.748 million for the Pathway to Partnership initiative.

Non-departmental output expenses increased by $109.616 million between 2007/08 and 2008/09 mainly because Vote Child, Youth and Family Services is being merged with Vote Social Development, with effect from 1 July 2008 (approximately $67 million). The other main reason is increased funding for the Pathway to Partnership initiative for 2008/09 and outyears. Funding increases from approximately $25 million in 2008/09 to approximately $175 million in 2011/12.

Non-Departmental Other Expenses

Figure 4- Trends in non-departmental other expenses

Non-Departmental Other Expenses
Non-Departmental Other Expenses
Source: Ministry of Social Development

Other Expenses increased by $340.066 million between 2004/05 and 2005/06 to $450.695 million. The main reasons are the early adoption of the New Zealand International Accounting Standard 39 for Debt Write-downs of Student Loans, and the Ministry of Social Development (MSD) accounting for Debt Write-downs from 2005/06 as a result of the change in the transfer treatment of Student Loans between MSD and the Department of Inland Revenue.

The increases in Other Expenses between 2006/07 and 2008/09 is mainly due to increase in Debt Write-downs to reflect the growth in Student Loans over recent years.

Non-Departmental Capital Expenditure

Figure 5 - Trends in non-departmental capital expenditure

Non-Departmental Capital Expenditure
Non-Departmental Capital Expenditure
Source: Ministry of Social Development

Capital Expenditure is dominated by student loans, with the next largest item, recoverable assistance, typically making up 8% to 10% of the total. The $26 million reduction between 2003/04 and 2004/05 reflects lower increases in fees under the fee stabilisation policy of the time, and fewer borrowers. The increase up to 2007/08 reflects greater borrowing since the introduction of no interest on loans policy since April 2006. Ongoing growth is expected in line with continuing cost increases and a rising number of eligible students due to population increases in the 18 to 25 age group.

Non-Departmental Benefits and Other Unrequited Expenses

Figure 6 - Trends in non-departmental benefits and other unrequited expenses

Benefits and Other Unrequited Expenses
Benefits and Other Unrequited Expenses
Source: Ministry of Social Development

The magnitude and trend in total benefit expenditure is mostly driven by New Zealand Superannuation, which accounted for 49% of expenditure in 2003/04 and will rise to 58% by 2011/12. The total increase in expenditure from nearly $12,000 million in 2003/04 to an estimated $16,100 million in 2011/12 is primarily due to accumulated cost of living adjustments, explaining about 80% of the increase. Four of the principal benefits and other unrequited expenses are summarised below. These items collectively account for between 78% and 80% of total expenditure on benefits and other unrequited expenses in each year.

New Zealand Superannuation

Figure 7 - Trends in New Zealand Superannuation

NZ Superannuation
NZ Superannuation
Source: Ministry of Social Development

About 65% of the $3,460 million increase over the 2003/04 to 2011/12 period is explained by accumulated cost of living adjustments. These include wage floor impacts where relevant, for example the 66% floor in April 2007. Over the same nine year period the number of recipients is expected to rise by 108,000 or 63% to reach 568,000. This growth is in line with the projected growth in the NZ population aged 65 years and over.

Invalid's Benefit

Figure 8 - Trends in Invalid's Benefit

Invalid's Benefit
Invalid's Benefit
Source: Ministry of Social Development

There is an estimated increase of 53% in annual expenditure between 2003/04 and 2011/12. Accumulated cost of living adjustments account for $330 million or 64% of the increase. The number of recipients has increased from an average of 70,500 in 2003/04 to an expected 90,400 in 2011/12. Projected increases in the number of Invalid's Benefit recipients is largely due to demographic trends.

Domestic Purpose Benefit

Figure 9 - Trends in Domestic Purpose Benefit

Domestic Purpose Benefit
Domestic Purpose Benefit
Source: Ministry of Social Development

Annual expenditure is expected to rise by over $75 million between 2003/04 and 2011/12. This relatively small increase results from the offsetting impact of accumulated cost of living adjustments adding about $370 million over the nine year period and an expected 15,100 (14%) fewer recipients in 2011/12 compared to 2003/04.

Unemployment Benefit and Emergency Benefit

Figure 10 - Trends in Unemployment Benefit and Emergency Benefit

Unemployment Benefit and Emergency Benefit
Unemployment Benefit and Emergency Benefit
Source: Ministry of Social Development

Annual expenditure is expected to reduce by $637 million or nearly 60% between 2003/04 and 2011/12, with nearly all of the reduction already having occurred. The number of recipients is projected to be stable from 2008/09 as employment creation slows in line with expected slower economic growth. The Emergency Benefit component of the total grew from 8,800 in 2003/04 to a peak of 9,400 in 2006/07 before falling sharply and is expected to continue to steadily fall.

Sickness Benefit

Figure 11 - Trends in Sickness Benefit

Sickness Benefits
Sickness Benefits
Source: Ministry of Social Development

The number of Sickness Benefit recipients is estimated to fall by over 5% (2,600) between 2007/08 and 2008/09. These numbers have been impacted by changes to administration under Working New Zealand and the active case management of this client group.

Other Benefits

Figure 12 - Trends in Other Benefits

Other Benefits
Other Benefits
Source: Ministry of Social Development

This section covers the other 16 benefits and other unrequited expense appropriations not already discussed. The largest item Accommodation Assistance has about 37% of annual expenditure which contributed significantly to growth in 2004/05 and 2005/06 following Working for Families initiatives that increased use of this assistance by non beneficiaries. Accommodation Assistance will contribute about one-quarter of growth over the 2007/08 to 2011/12 period. Student Allowances, at 18% of total annual amounts, fell slightly in earlier years but is expected to contribute about one-quarter of growth from 2007/08. Disability Assistance contributes about 16% to total annual expenditure and a further quarter of growth from 2007/08. Childcare Assistance made up 3% of the total in 2003/04 but has grown from 2004/05 and will reach over 8% of total by 2011/12. Childcare Assistance accounts for a steady 20% of each increment in annual amounts under Other Benefits.

Part 1.4 - Reconciliation of Changes in Appropriation Structure#

Reconciliation of Changes in Appropriation Structure - Social Development
2007/08Structure -
Appropriations that have been
Changed
2007/08
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been
Transferred
Amount
Moved
$000
2008/09Structure -
Appropriations affected by the
Changes in Appropriation
Structure
2007/08
(Restated)
$000
2008/09
$000
Departmental Output Expenses            
Community Services Card 5,764 Transferred to Management of Services Card (MCOA)   Management of Services Card (MCOA)    
   
  • Administration of Community Services Card output class
5,764
  • Administration of Community Services Card output class
5,764 5,764
Services to Seniors 40,815 Transferred to Management of Services Card (MCOA)        
   
  • Management of SuperGold Card output class
1,850
  • Management of SuperGold Card output class
1,850 1,850
    Transferred to Income Support and Assistance to Seniors 38,965 Income Support and Assistance to Seniors 38,965 39,243
Debt Management - Former Beneficiaries 16,776 Transferred to Collection of Balances Owed by Former Clients and Non-beneficiaries 16,776 Collection of Balances Owed by Former Clients and Non-beneficiaries 16,776 19,991
Policy Advice and Ministerial Servicing (Vote Child, Youth and Family Services) 1,573 Transferred to Policy Advice and Support to Ministers (MCOA)   Policy Advice and Support to Ministers (MCOA)    
   
  • Social Policy Advice output class
1,573
  • Social Policy Advice output class
45,395 49,867
       
  • Crown Entity Monitoring output class
1,831 1,900
Policy and Purchase Advice 42,722 Transferred to Policy Advice and Support to Ministers (MCOA)        
   
  • Social Policy Advice output class
40,891      
   
  • Crown Entity Monitoring output class
1,831      
Social Development Leadership 2,931 Transferred to Policy Advice and Support to Ministers        
   
  • Social Policy Advice output class
2,931      
Services to Minimise the Duration of Unemployment and Move People into Work 232,046 Transferred to Vocational Skills Training 93,796 Vocational Skills Training 93,796 85,635
    Transferred to Tailored Sets of Services to Help People into Work or Achieve Independence 138,250 Tailored Sets of Services to Help People into Work or Achieve Independence 399,021 427,363
Services to Provide Benefit Entitlements and Obligations to Working Age Beneficiaries and to Promote Self-Sufficiency 260,771 Transferred to Tailored Sets of Services to Help People into Work or Achieve Independence 260,771      
Services to Students 36,327 Transferred to Management of Student Support 36,327 Management of Student Support 36,327 36,292
Non-Departmental Output Expenses            
Capacity Building Initiatives 1,450 Transferred to Assistance to Disadvantaged Persons 1,450 Assistance to Disadvantaged Persons 1,450 1,450
Services for At-Risk Youth 543 Transferred to Life Skills and Employment-Related Training Activities 543 Life Skills and Employment-Related Training Activities 543 543
Non-Departmental Benefits and Other Unrequited Expenses            
Accommodation Supplement 892,094 Transferred to Accommodation Assistance 892,094 Accommodation Assistance 892,230 911,067
Special Transfer Allowance 136 Transferred to Accommodation Assistance 136      
Child Disability Allowance 88,340 Transferred to Disability Assistance 88,340 Disability Assistance 367,276 387,390
Disability Allowance 278,936 Transferred to Disability Assistance 278,936      
Merit Scholarships 7,500 Transferred to Study Scholarships and Awards 7,500 Study Scholarships and Awards 37,819 42,790
Scholarship and NQF/NCEA Awards 4,639 Transferred to Study Scholarships and Awards 4,639      
Step Up Scholarships 8,064 Transferred to Study Scholarships and Awards 8,064      
TeachNZ Scholarships 17,616 Transferred to Study Scholarships and Awards 17,616      
Ministerial Welfare Programmes Providing Specialist Types of Assistance 14,306 Transferred to Special Circumstance Assistance 14,306 Special Circumstance Assistance 14,306 13,672
Special Benefit 71,055 Transferred to Hardship Assistance 71,055 Hardship Assistance 183,869 170,382
Special Needs Grants 59,568 Transferred to Hardship Assistance 59,568      
Temporary Additional Support 53,246 Transferred to Hardship Assistance 53,246      
Training Incentive Allowance 29,698 Transferred to Employment Related Training Assistance 29,698 Employment Related Training Assistance 29,698 25,747
Unemployment Benefit 456,694 Transferred to Unemployment Benefit and Emergency Benefit 456,694 Unemployment Benefit and Emergency Benefit 456,694 417,408
Non-Departmental Other Expenses             
Suspensory Loan Abatement 10 Transferred to Debt Write-downs 10 Debt Write-downs 631,382 670,098
Debt Write-downs 631,372 Transferred to Debt Write-downs 631,372      
Total Changes in Appropriations 3,254,992   3,254,992   3,254,992 3,308,452

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-6.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Children and Young People Adoption Services, Care and Protection Services, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Prevention Services, and Youth Justice Services.
Objective - Give children the best start in life. Children are New Zealand's future. All children grow up in a safe and happy environment.
Objective - Help young people achieve their potential. Young people are supported to overcome barriers, and develop their understanding and ability to make good decisions about the range of issues and opportunities they may face.
Outcome - Working Age People Collection of Balances Owed by Former Clients and Non-beneficiaries, Management of Student Support, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class, Services to Protect the Integrity of the Benefit System, Tailored Sets of Services to Help People into Work or Achieve Independence, and Vocational Skills Training.
Objective - Enable people to live independent lives. All New Zealanders have access to services and the ability to obtain skills that will allow them to live healthy and productive lives and to achieve independence throughout their working lives.
Outcome - Older People Family and Community Services, Income Support and Assistance to Seniors, Management of Service Cards (MCOA) - Administration of Community Services Card output class and Management of SuperGold Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.
Objective - Enable older people to lead full and secure lives. Older people have access to their full entitlements and are able to live independently.
Outcome - Families and Whanau Care and Protection Services, Development and Funding of Community Services, Family and Community Services, Management of Service Cards (MCOA) - Administration of Community Services Card output class, and Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.
Objective - Supporting families and whanau to be safe and resilient. Families and whanau are able to support their members' wellbeing, identity, participation in society and interdependence.
Outcome - Communities, Hapu and Iwi Family and Community Services, Policy Advice and Support to Ministers (MCOA) - Social Policy Advice output class and Crown Entity Monitoring output class.
Objective - Strengthening communities. Build our relationships with, and the capability of, the community and voluntary sector to ensure that New Zealand families and communities are strong and resilient.

Adoption Services (M63)

Scope of Appropriation

The management of services, incorporating education, assessment, reporting, counselling, and mediation, to all people who are party to adoption-related matters, past or present.

Expenses and Revenue

Expenses and Revenue - Adoption Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 8,690
Revenue from the Crown - - 8,644
Revenue from Others - - 46

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Adoption Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality      
Percentage of prospective adoptive parents evaluating the education programme as achieving its objectives: 95% 95% 95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Adoption Services (M63) - Social Development
Reference Conditions
Adoption Act 1955. The Adoption Act 1955 provides for the management of the adoption process for the placement of New Zealand children in New Zealand.
Adoption (Inter-Country) Act 1997. The Adoption (Inter-Country) Act 1997 sets out processes for managing inter-country adoptions and provides for the Chief Executive to exercise responsibilities and to manage the adoption process where international parties are involved under the Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption.
Adult Adoption Information Act 1985. The Adult Adoption Information Act 1985 provides for adult adopted persons and their birth parents to request and receive information about their adoptions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Adoption Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 258 264 264 264 264
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 145 145 145 145 145
First Principles Baseline Review 2004/05 307 307 307 307 307
Implement Adoptions Law Reform Proposals 2004/05 1,141 1,141 1,141 1,141 1,141
Collective Employment 2003/04 93 93 93 93 93
First Principles Baseline Review 2003/04 373 373 373 373 373

Care and Protection Services (M63)#

Scope of Appropriation

Social work services, both statutory and informal, that protect and assist children and young people who are in need of care and protection.

Expenses and Revenue

Expenses and Revenue - Care and Protection Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 300,632
Revenue from the Crown - - 298,036
Revenue from Others - - 2,596

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Care and Protection Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Intake, Investigation and Assessment

     

Timeliness

     

Response to notifications
Notifications allocated to a social worker for investigation within Timeframes:

     
  • Critical - within 24 hours
95 - 100% 95 - 100% 95 - 100%
  • Very Urgent - within 48 hours
90 - 95% 90 - 95% 90 - 95%
Action taken at sites by a social worker to establish the immediate safety of the child or young person, and to confirm the response time and further action required, within timeframes:      
  • Urgent - within 7 days
50 - 85% 50 - 85% 50 - 85%
  • Low Urgent - within 28 days
50 - 85% 50 - 85% 50 - 85%
Percentage of investigations that will be completed in 90 days is no less than: 70% 70% 70%

Case Management

     

Quality

     
Percentage of children and young people whose care and protection Family Group Conference plans were completed and the objectives were assessed as being met: 80% 80% 80%

Timeliness

     
Percentage of care and protection Family Group Conference plans reviewed on time: 90% 90% 90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Care and Protection Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. The Children, Young Persons, and Their Families Act 1989 serves to protect and assist children and young people in need of care and protection. Care and Protection Services provided by Child, Youth and Family under the Act include:
  • notification, investigation and assessment of reports about children and young people at risk
  • management of casework where Child, Youth and Family intervenes to achieve care and protection outcomes
  • coordination of Family Group Conferences
  • supporting families to improve their capacity to meet their care, control and support responsibilities
  • the provision of care in the nature of foster care and residential services
  • the provision of resolution services to assist achieving care and protection needs.
Care of Children Act 2004. The Care of Children Act 2004 provides for the recognition of certain rights of children and provides for appropriate arrangements to be in place for the guardianship and care of children.
Domestic Violence Act 1995. The Domestic Violence Act 1995 provides legal protection to victims of domestic violence.
Percentage of investigations that will be completed in 90 days is no less than. This performance measure focuses social work activity on the achievement of an outcome to a notification. Reporting captures the length of time to complete an investigation from allocation to assessment decision.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Care and Protection Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Reinstatement of Care and Protection Baseline 2008/09 - 6,800 - - -
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 5,245 5,371 5,371 5,371 5,371
Care and Protection System Service Response to Demand 2006/07 20,444 20,444 20,444 20,444 20,444
Blueprint Investment Strategy 2005/06 330 - - - -
Child, Youth and Family Services Reprioritisation 2005/06 (889) (889) (889) (889) (889)
Implement Adoptions Law Reform Proposals 2005/06 137 137 137 137 137
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 19 19 19 19 19
First Principles Baseline Review 2004/05 8,835 8,835 8,835 8,835 8,835
Reduce Family Violence through the Establishment of Inter-agency Family Safety Teams 2004/05 181 181 181 181 181
Reforms in Social Assistance 2004/05 2,878 2,878 2,878 2,878 2,878
Residential Services Strategy 2004/05 6,375 6,375 6,375 6,375 6,375
Collective Employment 2003/04 1,598 1,598 1,598 1,598 1,598
First Principles Baseline Review 2003/04 25,996 25,996 25,996 25,996 25,996

Collection of Balances Owed by Former Clients and Non-beneficiaries (M63)#

Scope of Appropriation

Services to manage the collection of overpayments and recoverable assistance loans from former clients and other balances owed comprising of Student Allowance overpayments, Liable Parent Contributions, and court ordered Maintenance.

Expenses and Revenue

Expenses and Revenue - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,776 16,776 19,991
Revenue from the Crown 16,596 16,596 19,811
Revenue from Others 180 180 180

Reasons for Change in Appropriation

The increase in this appropriation is due to a fiscally neutral transfer in 2007/08 to Services to Protect the Integrity of the Benefit System, to meet the increased costs associated with the various data match processes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity      
The actual amount of money collected by the Integrity Services Collection Units is expected to be: Revised measure for 2008/09 Revised measure for 2008/09 $77m - $82m
Quality      
The proportion of former clients and students on arrangement to pay, or paid in full, within four months of the balance of overpayments and recoverable assistance loans transferring to the Integrity Services Collection Units will be no less than: 82% 82% 82%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Collection of Balances Owed by Former Clients and Nonbeneficiaries (M63) - Social Development
Reference Conditions
Sections 85A to 86J of the Social Security Act 1964 and the Ministerial Direction for section 86 pursuant to section 5 of the Social Security Act 1964. The Social Security Act 1964 provides for the recovery of payments made in excess of authorised rates and for recoverable assistance loans.
The Ministerial Direction for section 86A is in relation to the Chief Executive's powers to recover monies as debts due to the Crown.

Development and Funding of Community Services (M63)#

Scope of Appropriation

Management of Government funding of community-based social and welfare services.

Expenses and Revenue

Expenses and Revenue - Development and Funding of Community Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 8,057
Revenue from the Crown - - 7,998
Revenue from Others - - 59

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Development and Funding of Community Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality      
All funding agreements will have their provider monitoring reports reviewed and assessed at least once per year for contract compliance: 100% 100% 100%
All providers contracted under the Children, Young Persons and their Families Act 1989 will be assessed at least once every two years against Child, Youth and Family Approval Standards: 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Development and Funding of Community Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Part 8 of the Children, Young Persons, and Their Families Act 1989 comprises provisions relating to iwi social services, cultural social services, child and family support services, and community services.
Child Youth and Family Services develop and fund Community Services through:
  • community services planning
  • working with the community sector and other government agencies to develop service frameworks for community-based social services
  • provider development
  • quality assurance processes to ensure providers meet quality standards
  • the management of service provider funding agreements.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Development and Funding of Community Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 125 128 128 128 128
Multi-Agency Support Services in Secondary Schools (MASSiS) 2007/08 712 - - - -
Services for Children Witnessing Family Violence 2005/06 71 71 71 71 71
Early Intervention for At Risk Families 2004/05 327 327 327 327 327
First Principles Baseline Review 2004/05 439 439 439 439 439
Social Workers in Schools 2004/05 459 459 459 459 459
Collective Employment 2003/04 116 116 116 116 116
First Principles Baseline Review 2003/04 184 184 184 184 184

Family and Community Services (M63)#

Scope of Appropriation

Provision of leadership and co-ordination services to support and strengthen families and whanau; including providing information and advice that assists families, young people and communities and managing preventative social services programmes.

Expenses and Revenue

Expenses and Revenue - Family and Community Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 29,940 29,940 31,517
Revenue from the Crown 29,811 29,811 31,388
Revenue from Others 129 129 129

Reasons for Change in Appropriation

The increase in this appropriation is largely due to additional funding for the Pathway to Partnership initiative in Budget 2008; a transfer of funding from Vote Education for Parent Support and Development programmes; and migrant levy funding.

Output Performance Measures and Standards

Output Performance Measures and Standards - Family and Community Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Leadership Facilitation and Planning Processes

     

Quantity

     
The average number of agencies operating out of Heartland Services Centres on a monthly basis will be no less than: 21 21 21
The average number of clients using Heartland Services Centres on a monthly basis will be no less than: 7,000 7,000 7,000
The number of Heartland Services Centres will be maintained at no less than: 34 34 34

Quality

     
The proportion of contracts meeting standards outlined in the Treasury Guidelines for Contracting with Non-Government Organisations for services sought by the Crown will be no less than: 100% 100% 100%
All funding agreements will have their provider monitoring reports reviewed and assessed at least once per year for contract compliance: Standard met Standard met Standard met

Provision of Information and Advice

     

Timeliness

     
The percentage of community profiles developed through Local Services Mapping that result in an action plan within 12 months of publication will be no less than: 90% 90% 90%
The time taken to action requests received from providers to update their details on the National Directory will be no more than: 5 working days 5 working days 5 working days
The percentage of payments to providers that are made in accordance with their contracts will be no less than: 97% 97% 97%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Family and Community Services (M63) - Social Development
Reference Conditions
Heartland Services Centre quality is measured indirectly. The Ministry of Social Development provides facilities and coordination services to Heartland Services Centres to the satisfaction of agencies and clients.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family and Community Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 - 3,972 5,262 6,132 6,902
Early Years: Giving Children the Best Start in Life 2007/08 88 114 - - -
Family Violence - Whanau Violence Prevention Best Practice Initiatives 2007/08 2,000 - - - -
Pathway to Partnership: Strengthening the Child and Family Services Sector 2007/08 452 452 - - -
Continue Strategies with Kids Information for Parents (SKIP) Programme 2006/07 3,684 3,684 3,684 3,684 3,684
Expansion of Youth Transitions 2006/07 2,500 2,500 2,500 2,500 2,500
Reducing Violence Within Families 2006/07 1,385 1,285 1,046 - -
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 245 245 245 245 245
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 221 221 221 221 221
Early Intervention for Vulnerable Children - Pilot Parenting Support to Complement Well-Child 2005/06 35 31 - - -
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 202 202 202 202 202
Families Programme of Action - Families Innovation Fund 2005/06 444 444 444 444 444
Increase in Funding for Elder Abuse and Neglect Prevention 2005/06 116 116 116 116 116
Increase Strengthening Families Co-ordinators' Paid Hours 2005/06 581 581 581 581 581
NGO Study Awards 2005/06 79 79 79 79 79
Strengthening Families Review 2005/06 646 646 646 646 646
Community Initiatives Fund 2004/05 89 89 89 89 89
Leadership and Coordination of Family Services 2004/05 5,804 5,804 5,804 5,804 5,804

Income Support and Assistance to Seniors (M63)#

Scope of Appropriation

This appropriation is limited to paying New Zealand Superannuation and social security entitlements (including administering related international social security agreements) and providing advice and brokering services to help older people maintain independence and social participation; and administering international social security agreements relating to non-superannuitants.

Expenses and Revenue

Expenses and Revenue - Income Support and Assistance to Seniors (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 40,815 40,815 39,243
Revenue from the Crown 40,403 40,403 38,831
Revenue from Others 412 412 412

Reasons for Change in Appropriation

The changes in this appropriation are due to the transfer of SuperGold Card costs to a new Multi Class Output Appropriation (MCOA) called Management of Service Cards - Management of SuperGold Card output class.

Output Performance Measures and Standards

Output Performance Measures and Standards - Income Support and Assistance to Seniors (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Services to Seniors

     

Satisfaction

     
The percentage of clients satisfied with the level of service provided will be no less than: 90 - 95% 90 - 95% 90 - 95%

Accuracy

     
The percentage of entitlement assessments completed accurately will be no less than: 92% 92% 92%

Timeliness

     
The percentage of entitlement assessments completed within five working days will be no less than: 85% 85% 85%

International Services

     

Satisfaction

     
The percentage of applications for payment overseas finalised within 20 working days will be no less than: 80 - 85% 80 - 85% 80 - 85%

Accuracy

     
The percentage of entitlement assessments completed accurately will be no less than: 92% 92% 92%

Timeliness

     
The percentage of applications for payment overseas finalised within 20 working days will be no less than: 90% 90% 90%
The percentage of review actions, including correspondence, that are completed within five working days will be no less than: 93% 93% 93%
The percentage of all incoming calls that are answered within 20 seconds will be no less than: 90% 90% 90%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Income Support and Assistance to Seniors (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 - 1,741 233 227 228
Working New Zealand: Work-Focused Support: Support and Services 2007/08 327 - - - -
Progressive Removal of Asset Testing for Older People in Long-Term Residential Care 2004/05 1,658 1,658 1,658 1,658 1,658

Management of Service Cards MCOA (M63)#

Scope of Appropriation

Administration of Community Services Card
This output class is limited to assessing entitlement, issuing cards, and promoting and distributing information about the Community Services Card.

Management of SuperGold Card
This output class is limited to management of the SuperGold Card and the Veteran SuperGold Card comprising assessing entitlement for, and issuing cards, distributing information about the Card, enlisting business partners to provide discounts to cardholders, and promoting use of the Card and related discounts.

Explanation for Use of Multi-Class Output Expense Appropriation

The two output classes grouped together under this MCOA are both related to Service Cards and as such involve similar services.

Expenses and Revenue

Expenses and Revenue - Management of Service Cards MCOA (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 7,614
Revenue from the Crown - - 7,578
Revenue from Others - - 36

Reasons for Change in Appropriation

This MCOA is a new appropriation in 2008/09 and includes the departmental appropriation, Community Services Card and a new output class, Management of SuperGold Card.

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Service Cards MCOA (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Administration of Community Services Card Output Class

     

Quality

     
The percentage of Community Services Card entitlement assessments accurately completed as determined by regulation will be no less than: Revised measure in 2008/09 Revised measure in 2008/09 95%

Timeliness

     
The percentage of all calls to the Card Centre answered within 20 seconds will be no less than: 85% 85% 85%
The percentage of initial applications and those requiring validation processed within two working days of receipt will be no less than: 90% 90% 90%

Management of SuperGold Card Output Class

     

Quality

     
The percentage of SuperGold Card entitlement assessments accurately completed as determined by regulation will be no less than: New measure in 2008/09 New measure in 2008/09 95%

Timeliness

     
The percentage of all calls to the SuperGold Card information line answered within 20 seconds will be no less than: New measure in 2008/09 New measure in 2008/09 95%
The percentage of SuperGold Card applications and those requiring validation processed within two working days of receipt will be no less than: New measure in 2008/09 New measure in 2008/09 90%
The percentage of business partner applications processed within 3 working days of receipt will be no less than: New measure in 2008/09 New measure in 2008/09 85%
The percentage of updates to the SuperGold Online Directory completed within 5 working days of advice by the business partner will be no less than: New measure in 2008/09 New measure in 2008/09 90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Service Cards MCOA (M63) - Social Development
Reference Conditions
Administration of Community Services Card  
Health Entitlement Cards Regulations 1993 pursuant to section 52 of the Health and Disability Services Act 1993, section 25(1)(c) of the Health Reforms (Transitional Provisions) Act 1993, and section 132A of the Social Security Act 1964. The Health Entitlement Cards Regulations 1993 provide for the assessment, issue, and administration of Community Services Cards.
Management of SuperGold Card  
Social Security (SuperGold Card) Regulations 2007 pursuant to section 132A of the Social Security Act 1964 and the Health Entitlement Cards Regulations 1993 pursuant to section 52 of the Health and Disability Services Act 1993, section 25(1)(c) of the Health Reforms (Transitional Provisions) Act 1993, and section 132A of the Social Security Act 1964. The Social Security (SuperGold Card) Regulations 2007 and the Health Entitlement Cards Regulations 1993 provide for the assessment, issue and administration of SuperGold Cards.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Service Cards MCOA (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
SuperGold Card 2007/08 1,000 - - - -
Implementing a "Golden Age" Card 2006/07 2,725 1,210 1,210 1,210 1,210

Management of Student Support (M63)#

Scope of Appropriation

This appropriation is limited to managing financial support to students involving assessing and paying student allowances to eligible secondary and tertiary students, student loans to tertiary students, and Government scholarships and awards for tertiary students, and, as part of managing this support, providing related guidance to students making financial and study decisions.

Expenses and Revenue

Expenses and Revenue - Management of Student Support (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 36,327 36,327 36,292
Revenue from the Crown 36,163 36,163 36,128
Revenue from Others 164 164 164

Output Performance Measures and Standards

Output Performance Measures and Standards - Management of Student Support (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Student Allowances and Student Loans

     
The percentage of independently surveyed students satisfied with the level of service received from StudyLink will be no less than: Revised measure for 2008/09 Revised measure for 2008/09 80 - 85%
The percentage of independently surveyed users of the On Course programme who found the programme information valuable will be no less than: 90 - 95% 90 - 95% 90 - 95%
The percentage of New Zealand secondary schools contacted that will participate in one or more components of the On Course programme will be no less than: 93% 93% 93%

Student Allowances

     

Accuracy

     
The percentage of students who receive their correct Student Allowance entitlement on their first payment will be no less than: 95% 95% 95%

Timeliness

     
The initial entitlement assessment for a Student Allowance will be completed within five working days of application receipt: 95% 95% 95%

Student Loans

     

Accuracy

     
The percentage of students who receive their correct entitlement (living cost component) on their first payment will be no less than: 96% 96% 96%

Timeliness

     
The initial entitlement assessment for a Student Loan will be completed within three working days of application receipt: 95% 95% 95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Management of Student Support (M63) - Social Development
Reference Conditions
Education Act 1989. Part 25 of the Education Act 1989 provides for the administration of Student Loans and Student Allowances and scholarships.
Student Loan Scheme Act 1992. The Student Loan Scheme Act 1992 provides for the collection of Student Loan repayments and Bonded Scholarships.
Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of Hardship pursuant to section 5 of the Social Security Act 1964. The Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of Hardship provides that students may be eligible for Unemployment Benefit Student Hardship if they meet certain criteria.
Student Allowance Regulations 1998 pursuant to sections 303, 306, and 307 of the Education Act 1989. Student Allowances are governed by the Student Allowance Regulations 1998 and are paid to assist eligible students with their living expenses whilst they undertake full-time study.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Management of Student Support (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Expansion of Bonded Merit Scholarship Scheme 2008/09 - 100 130 170 215
Increasing the student allowance parental income threshold by 10% 2008/09 - 730 690 745 775
Increasing the Student Loan Scheme Living cost component to $155 per week 2008/09 - 370 - - -
Lowering the age limit for student allowance parental income testing by one year 2008/09 - 1,285 950 995 1,045
Student Loans Redesign 2008/09 - 800 - - -
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 10 - - - -
Expansion and Redesign of Step Up Scholarships 2007/08 718 493 503 527 527
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 122 114 116 119 119
Working New Zealand: Work-Focused Support: Support and Services 2007/08 175 - - - -
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 187 187 187 187 187
Enhance and Extend the Integrated Data Set of Student Loan Scheme Borrowers 2005/06 80 80 80 80 80
Establish a Pilot Student Finance Advisory Service 2005/06 1,460 1,460 1,460 1,460 1,460
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 116 116 116 116 116
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 213 213 213 213 213
Introduce Bonded Merit Scholarships 2005/06 311 311 311 311 311
Access to Student Loans for Part-Time Part Year Students 2004/05 78 78 78 78 78
Focusing on Priorities for Teacher Supply 2004/05 164 164 164 164 164
Increasing Student Allowance Parental Income Thresholds 2004/05 1,888 1,888 1,888 1,888 1,888
Non-Asset Procedure Debtors-Access to Student Loans 2004/05 12 12 12 12 12
Removing the Work History Criterion for the Independent Circumstances Grant 2004/05 (58) (58) (58) (58) (58)
Step Up Scholarships 2004/05 373 373 373 373 373

Policy Advice and Support to Ministers MCOA (M63)#

Scope of Appropriation

Social Policy Advice
This output class is limited to policy advice and servicing support comprising advice on cross-sectoral and long term social policy matters; advice on the design and operation of social development programmes and initiatives; the provision of information to, and discussion fora for, the public and other agencies on social policy issues; and ministerial servicing.

Crown Entity Monitoring
This output class is limited to the purchase, appointment and monitoring advice for social development and employment Crown entities, and appointment advice for social development and employment statutory tribunals.

Explanation for Use of Multi-Class Output Expense Appropriation

The two output classes under the MCOA both relate to the same broad service of providing advisory support to Ministers.

Expenses and Revenue

Expenses and Revenue - Policy Advice and Support to Ministers MCOA (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated
Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation - - 51,767 53,784 44,554 41,422
Revenue from the Crown - - 50,222 52,239 43,009 39,877
Revenue from Others - - 1,545 1,545 1,545 1,545

Reasons for Change in Appropriation

This is a new MCOA appropriation combining three departmental appropriations, Policy and Purchase Advice and Social Development Leadership in Vote Social Development and Policy Advice and Ministerial Servicing previously in Vote Child, Youth and Family Services.

The significant changes in this appropriation are due to: Historical Claims funding which is only for two years, $5.283 million in 2008/09 and $6.783 million in 2009/10; Longitudinal Study of New Zealand Children and Families funding is also only for two years, $4.750 million in 2009/10 and $3.100 million in 2010/11.

Output Performance Measures and Standards

Output Performance Measures and Standards - Policy Advice and Support to Ministers MCOA (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Social Policy Advice Output Class

     

Quantity and Timeliness

     
Policy advice will be delivered in accordance with a work programme that is agreed with their respective Ministers: Standard met Standard met Processes are complied with in at least 90% of cases. Standard met

Quality

     

Process

     
An audit shows that the Ministry of Social Development's policy and research processes as outlined in the Quality Management System have been followed in at least: Processes are complied with in at least 90% of cases Processes are complied with in at least 90% of cases Processes are complied with in at least 90% of cases

Technical Robustness

     
An external independent review of the Ministry of Social Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria Standard met Standard met Standard met

Ministerial Services Output

     

Quality

     
The percentage of ministerial drafts provided for the Minister's signature, containing no avoidable errors will be no less than: 95% 95% 95%
The percentage of parliamentary question drafts provided for the Minister's signature where error could have been avoided will be no less than: 100% 100% 100%

Timeliness

     
The percentage of draft ministerial replies to be completed within 20 working days of receipt by the Ministry, unless otherwise agreed will be no less than: 95% 95% 95%
Information for oral parliamentary questions will be provided to the Minister's Office within the timeframe they specify: 100% 100% 100%
The percentage of written parliamentary questions will be answered within the time specified by the Minister's Office: 100% 100% 100%

Crown Entity Monitoring Output Class

     

Quantity

     
Provide advice on Crown entity statements of intent and output agreements: 5 5 10
Provide monitoring advice on each Crown entity's quarterly performance report against their statements of intent and output agreements: 20 20 20

Quality

     
Advice and reports will meet the quality characteristics described in the Ministry of Social Development's Quality Management System: Quality characteristics met Quality characteristics met Quality characteristics met
Advice on appointments will meet the State Services Commission's guidelines and relevant legislation: New measure in 2008/09 New measure in 2008/09 Standard met

Timeliness

     
Purchase advice will be delivered to Ministers within negotiated deadlines 100% 100% 100%
Advice to Ministers on draft statements of intent for the 5 Crown entities for the next year is provided by no later than 30 April 2009: 100% 100% 100%
Advice to Ministers on draft output agreements for the 5 Crown entities for the next year is provided by no later than 30 June 2009: 100% 100% 100%
Quarterly reports are reviewed no later than 20 working days from receipt of the final Crown entity reports: 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Policy Advice and Support to Ministers MCOA (M63) - Social Development
Reference Conditions
Work Programme. Work programme may include the Ministry's Key Priorities document as agreed between the Chief Executive and the Minister.
Policy Advice - Standard Met. Standard met means that we have received confirmation from the Minister via their Office that advice has been delivered in accordance with a work programme.
Quality. The work in relation to the audit, review or survey for these measures will be conducted during the year and reported on an annual basis.
Quality Management System. The quality characteristics in the Ministry's Quality Management System are based on decision-making (defining, debating and deciding) and communication (capturing issues, convincing and confirming).
Technical Robustness - Standard Met. The standard for this measure is based on a continuum of: standard not met, standard met and standard exceeded.
The Ministers who receive services are:
  • Minister of Social Development and Employment.
  • Minister for Disability Issues.
  • Minister for the Community and Voluntary Sector.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Policy Advice and Support to Ministers MCOA (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2008/09 - 89 - - -
Historical Claims 2008/09 - 5,283 6,783 - -
Longitudinal Study of New Zealand Children and Families 2008/09 - - 4,750 3,100 -
Early Years: Giving Children the Best Start in Life 2007/08 40 - - - -
NGO Study Awards 2007/08 44 - - - -
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 630 535 335 335 355
Working New Zealand: Work-Focused Support: Support and Services 2007/08 1,791 1,244 504 297 297
Reducing Violence Within Families 2006/07 420 420 295 - -
Disabled Persons Nomination Register 2005/06 142 142 142 142 142
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 36 36 - - -
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 78 - - - -
Early Intervention for Vulnerable Children - Pilot Parenting Support to Complement Well-Child 2005/06 156 156 - - -
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 200 - - - -
New Services for Sickness and Invalids' Benefit Recipients 2005/06 178 - - - -
Blueprint Investment Strategy 2004/05 568 461 461 461 461
First Principles Baseline Review 2004/05 259 259 259 259 259
Residential Services Strategy 2004/05 89 89 89 89 89
Evaluation of Working for Families Package 2004/05 1,950 1,550 1,550 222 222
Office for Disability Issues 2004/05 274 274 274 274 274
Te Wero and Community Sector Taskforce 2004/05 421 421 421 421 421
Youth Transition Service 2004/05 139 139 139 139 139
Collective Employment 2003/04 67 67 67 67 67
First Principles Baseline Review 2003/04 1,142 1,142 1,142 1,142 1,142
Jobs Jolt Initiatives 2003/04 2,992 2,992 2,992 2,992 2,992

Prevention Services (M63)#

Scope of Appropriation

Education and advice services for the prevention of child abuse and neglect, and the promotion of the wellbeing of children, young people and their families

Expenses and Revenue

Expenses and Revenue - Prevention Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 5,104
Revenue from the Crown - - 4,490
Revenue from Others - - 614

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Prevention Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quality

     
In those communities in which the Everyday Communities Programme is run, there is increased awareness of child abuse and neglect: Increase in awareness as measured by monitoring at the end of each phase of the programme Increase in awareness as measured by monitoring at the end of each phase of the programme Increase in awareness as measured by monitoring at the end of each phase of the programme

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Prevention Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Part 1 section 7 of the Children, Young Persons, and Their Families Act 1989 sets out the general duties of the Chief Executive which include promoting the provision and establishment of support services, as well as raising awareness, by education and publicity, of child abuse.
Prevention Services include:
  • activities to promote and support stronger communities
  • public education programmes to promote the importance of child and family wellbeing
  • Everyday Communities programme, which focuses on ensuring all New Zealanders act to achieve wellbeing and safety for New Zealand children.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Prevention Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 127 130 130 130 130
First Principles Baseline Review 2004/05 312 312 312 312 312
Collective Employment 2003/04 79 79 79 79 79
First Principles Baseline Review 2003/04 214 214 214 214 214

Services to Protect the Integrity of the Benefit System (M63)#

Scope of Appropriation

Services to minimise errors, fraud and abuse of the benefit system.

Expenses and Revenue

Expenses and Revenue - Services to Protect the Integrity of the Benefit System (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 38,788 38,788 35,959
Revenue from the Crown 38,442 38,442 35,613
Revenue from Others 346 346 346

Reasons for Change in Appropriation

The decrease in this appropriation is largely due to a one-off fiscally neutral transfer in 2007/08, to meet increased operational costs of data match programmes.

Output Performance Measures and Standards

Output Performance Measures and Standards - Services to Protect the Integrity of the Benefit System (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quality

     
The percentage of clients aware of the consequences of committing benefit fraud will exceed: 75% 75% 75%
The change in circumstances notification for clients contacted through the Early Intervention Strategy will exceed: 20% 20% 20%
Of the cases that we prosecute, the proportion of successful prosecutions concluded will exceed: 85% 85% 85%

Timeliness

     
All change of circumstances notifications arising out of Early Interventions will be notified to the appropriate case manager to ensure clients receive correct entitlement within: 3 working days 3 working days 3 working days

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Services to Protect the Integrity of the Benefit System (M63) - Social Development
Reference Conditions
Crimes Act 1961. The Crimes Act 1961 provides for criminal offences including dishonestly using a document.
Education Act 1989 and the Student Allowance Regulations 1998 pursuant to sections 303, 306, and 307 of the Education Act 1989. The Education Act 1989 and the Student Allowances Regulations 1998 provide for the investigation of Student Allowance and Student Loan applications.
Privacy Act 1993. The Privacy Act 1993 establishes principles for the collection, storage, security, and access to personal information about individuals. The Privacy Act 1993 also prescribes rules for establishing and maintaining information matching programmes.
Social Security Act 1964. The Social Security Act 1964 provides for offences and the investigation of claims and grants of benefits, including the power to obtain information and apply financial sanctions.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services to Protect the Integrity of the Benefit System (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Extend Data Matches to Students 2004/05 1,079 1,079 1,079 1,079 1,079
Family Violence Intervention One on One Mentoring 2004/05 4,275 4,275 4,275 4,275 4,275

Tailored Sets of Services to Help People into Work or Achieve Independence (M63)#

Scope of Appropriation

This appropriation is limited to delivering tailored sets of services to individuals to help them into sustainable employment, participate more fully in their community or achieve a greater level of social independence; and the management of related non-departmental output contracts. The composition of each set of services is determined by the individual's needs and selected from a mix of employment readiness training and support, employment placement, social support services, payment of income support and training support benefits, and referrals to other employment or social support providers.

Expenses and Revenue

Expenses and Revenue - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated
Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation - - 427,363 417,977 410,723 404,131
Revenue from the Crown - - 412,914 403,528 396,274 389,682
Revenue from Others - - 14,449 14,449 14,449 14,449

Reasons for Change in Appropriation

This is a new appropriation in 2008/09 combining Services to Provide Benefit Entitlements and Obligations to Working Age Beneficiaries and Services to Promote Self-Sufficiency and Services to Minimise the Duration of Unemployment and Move People into Work to reflect the services provided by Work and Income, a service line within the Ministry of Social Development.

The significant reduction in appropriations are due to decreasing one-off expense transfers from previous years to self fund the replacement of the Ministry's key IT systems; and a decrease in outyear funding of $707,000 for the Working New Zealand Work Focused Support.

Output Performance Measures and Standards

Output Performance Measures and Standards - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Tailored Sets of Services to Help People into Work or Achieve Independence      

Getting Clients into Work

     
The proportion of job-seeking clients in receipt of a main benefit who exit into employment will be: 35% 35% 35%
The proportion of job-seeking clients in receipt of a main benefit with a duration of six months or more, who exit into employment will be: 36% 36% 35%

Clients Remaining in Work Longer

     
The average cumulative time that job-seeking clients, who exit to work, spend in employment over the course of a year will be: 36.5 weeks 36.5 weeks 37 weeks
The proportion of job-seeking clients who exited into employment and achieved six months continuous employment will be: 58% 58% 59%

Quantity

     
The number of Work Support service sets delivered during the year will be: New measure in 2008/09 New measure in 2008/09 115,000 - 127,300
The number of Work Development Support service sets delivered during the year will be: New measure in 2008/09 New measure in 2008/09 211,300 - 233,500
The number of Community Support service sets delivered during the year will be: New measure in 2008/09 New measure in 2008/09 103,500 - 114,400

Quality

     
The percentage of entitlement assessments completed accurately will be no less than: 90% 90% 90%

Timeliness

     
The percentage of entitlement assessments completed within five working days will be no less than: 85% 85% 85%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Tailored Sets of Services to Help People into Work or Achieve Independence (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Reduced Departmental Outputs to Partially Fund Community Partnership Fund 2007/08 (1,100) - - - -
Working New Zealand Health and Innovation Fund Draw Down 2007/08 4,586 - - - -
Expansion of Youth Transitions 2007/08 2,500 2,500 2,500 2,500 2,500
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 210 210 315 315 315
Working New Zealand: Work-Focused Support and Services 2007/08 19,357 15,353 14,652 14,652 14,652
Implementing Free Early Childhood Education 2006/07 1,044 1,044 1,058 1,058 1,058
Accommodation Supplement (Retirement Villages) 2005/06 23 23 23 23 23
Automated Reassessment of Accommodation Supplement Entitlement in Line with the Annual General Adjustment 2005/06 (572) (572) (572) (572) (572)
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 277 280 280 280 280
Enhancing Parents' Work Choices 2005/06 678 680 680 680 680
New Services for Sickness and Invalid's Benefit Recipients 2005/06 1,053 1,053 1,053 1,053 1,053
New Services for Sickness and Invalid's Benefit Recipients 2005/06 2,228 2,228 2,228 2,228 2,228
Accommodation Supplement Automated Reassessment of Entitlement in line with the Annual General Adjustment 2004/05 508 508 508 508 508
Addressing Long-Term Unemployment 2004/05 2,444 2,444 2,444 2,444 2,444
Benefit Stand down - Changes to remove barriers to seasonal work 2004/05 75 75 75 75 75
Disability Allowance for Vocational Services - Streamlining payments to Vocational Services providers and improving service delivery to clients 2004/05 76 76 76 76 76
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 1,392 1,392 1,392 1,392 1,392
Legal Recognition of Relationships 2004/05 26 26 26 26 26
Repositioning of Community Employment Activities 2004/05 13,067 13,067 13,067 13,067 13,067
Working for Families - Delivery 2004/05 14,000 14,000 14,000 14,000 14,000
Working for Families - Future Directions: Family Income Assistance Delivery Enhancements 2004/05 56 56 56 56 56
Youth Transition Service 2004/05 6,155 6,155 6,155 6,155 6,155
Jobs Jolt Initiatives 2003/04 6,602 6,602 6,602 6,602 6,602

Vocational Skills Training (M63)#

Scope of Appropriation

This appropriation is limited to vocationally based skills training for working-age people through the Training Opportunities Programme.

Expenses and Revenue

Expenses and Revenue - Vocational Skills Training (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 85,635
Revenue from the Crown - - 85,635
Revenue from Others - - -

Reasons for Change in Appropriation

This is a new appropriation in 2008/09 with funding transferred from Services to Minimise the Duration of Unemployment and Move People into Work.

Output Performance Measures and Standards

Output Performance Measures and Standards - Vocational Skills Training (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
In depth discussions regarding training needs will be undertaken prior to annual purchasing in the: New measure in 2008/09 New measure in 2008/09 11 Work and Income regions
The proportion of programmes delivered by NZQA registered and accredited training providers will be no less than: New measure in 2008/09 New measure in 2008/09 100%
The percentage of learners who move on to employment or further tertiary training outside of Training Opportunities within two months of leaving the programme will be no less than: New measure in 2008/09 New measure in 2008/09 60%
The proportion of training providers monitored and programme performance evaluated including outcome achievement will be no less than: New measure in 2008/09 New measure in 2008/09 100%
The average number of learners in training at any one time will be: New measure in 2008/09 New measure in 2008/09 7,400

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Vocational Skills Training (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Expanding the Community Organisation Grants Scheme 2008/09 - (2,065) (2,192) (2,065) (2,065)
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 - (5,581) (5,581) (5,581) (5,581)

Youth Justice Services (M63)#

Scope of Appropriation

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.

Expenses and Revenue

Expenses and Revenue - Youth Justice Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 97,797
Revenue from the Crown - - 97,400
Revenue from Others - - 397

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Youth Justice Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Restorative Services

     

Quality

     
Percentage of children and young people whose Youth Justice Family Group Conference plans were completed and the objectives were assessed as being met: 80% 80% 80%

Case Management

     

Timeliness

     
Youth Justice Family Group Conferences are held within statutory timeframes (unless there are special reasons for delay): 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Youth Justice Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Part 4 of the Children, Young Persons, and Their Families Act 1989 provides for social work and other services to manage and resolve offending behaviour by children and young persons. Youth Justice Services include assessment, support, programmes, and containment and care of young offenders.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Youth Justice Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Operating Funding for Additional Beds at Youth Justice Central Residences 2009/10 - - 1,309 2,617 2,617
Youth Justice Central Residential Facility 2008/09 - 1,509 6,754 11,089 11,089
Child, Youth and Family Draw Down of Contingency Funds for Settlement of Collective Agreement 2007/08 1,820 1,864 1,864 1,864 1,864
Programmes for Youth Offenders 2007/08 1,400 - - - -
Supported Bail Programme 2007/08 1,320 - - - -
Increases in Personnel Costs Arising from Amendments to the Holidays Act 2003 2005/06 397 397 397 397 397
First Principles Baseline Review 2004/05 3,070 3,070 3,070 3,070 3,070
Reforms in Social Assistance 2004/05 40 40 40 40 40
Residential Services Strategy 2004/05 6,626 6,626 6,626 6,626 6,626
Collective Employment 2003/04 554 554 554 554 554
First Principles Baseline Review 2003/04 5,437 5,437 5,437 5,437 5,437

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Children and Young People Assistance to Disadvantaged Persons, Children's Commissioner, Counselling and Rehabilitation Services, Education and Prevention Services, Family Wellbeing Services, Life Skills and Employment-Related Training Activities, Strengthening Providers and Communities, and Student Placement Services.
Outcome - Working Age People Assistance to Disadvantaged Persons, Life Skills and Employment-Related Training Activities, Retirement Commissioner, Student Placement Services, and Vocational Services for People with Disabilities.
Outcome - Older People Assistance to Disadvantaged Persons and Retirement Commissioner.
Outcome - Families and Whanau Counselling and Rehabilitation Services, Education and Prevention Services, Families Commission, Family Wellbeing Services, Strengthening Providers and Communities, Strong Families, and Student Placement Services.
Outcome - Communities, Hapu and Iwi Connected Communities and Strengthening Providers and Communities.

Assistance to Disadvantaged Persons (M63)

Scope of Appropriation

This appropriation is limited to the provision of resources and assistance to disadvantaged persons in the community and comprises: distribution of talking books and articles for the blind; support for carers of older persons, disabled or others in the community; and advocacy assistance to people seeking entitlements from government agencies.

Expenses

Expenses - Assistance to Disadvantaged Persons (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,450 1,450 1,450

Output Performance Measures and Standards

Output Performance Measures and Standards - Assistance to Disadvantaged Persons (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Talking Books for the Blind

     
The number of Talking Books delivered and returned will be no less than: 370,000 370,000 370,000

Articles for the Blind

     
The number of articles for the blind delivered will be no less than: 8,000 8,000 8,000

Red Cross

     
A contract is established with the Red Cross that provides support for carers of older persons, disabled or others in the community: New measure in 2008/09 New measure in 2008/09 Contract established

Citizens' Support

     
Provide advocacy services in each of the Work and Income regions: 11 11 11

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Assistance to Disadvantaged Persons (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Funding for the Red Cross 2005/06 500 500 500 500 500
Community Initiatives Fund 2004/05 711 711 711 711 711
Older People as Life and Home Skills Mentors 2004/05 965 965 965 965 965

Children's Commissioner (M63)#

Scope of Appropriation

Provision of services from the Children's Commissioner including the discharge of the Commissioner's duties under the Children, Young Persons and Their Families Act 1989, the Children's Commissioner Act, identification of aspects of law, policy and practice that might adversely affect children and the development and proposal of remedies.

Expenses

Expenses - Children's Commissioner (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,257 2,257 1,757

Reasons for Change in Appropriation

The decrease in this appropriation is due to a one-off transfer of funds from the Families Commission in 2007/08.

Output Performance Measures and Standards

Output Performance Measures and Standards - Children's Commissioner (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of Ministerial meetings and briefings to be held will be: 10 10 10
The number of meetings of the Young People's Reference Group will be: 4 4 4
The number of Commissioner visits to Child, Youth and Family sites and residences will be: 10 10 8
Monitoring of Child, Youth and Family complies with standards established in the Memorandum of Understanding Revised measure in 2008/09 Revised measure in 2008/09 Joint annual review of the effectiveness of the Memorandum of Understanding
Meetings with the Ministry of Social Development's Chief Executive and Deputy Chief Executive - Child, Youth and Family will take place to discuss the monitoring of Child, Youth and Family Revised measure in 2008/09 Revised measure in 2008/09 10 meetings
The number of responses to information and resource requests, including United Nations Convention on the Rights of the Child (UNCROC) resources, will be: 650 650 650
The preparation of the Alternative Report to UNCROC on UNCROC compliance by New Zealand. New measure in 2008/09 New measure in 2008/09 1 report presented to UNCROC

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Children's Commissioner (M63) - Social Development
Reference Conditions
Children's Commissioner Act 2003 The Children's Commissioner Act 2003 provides for the appointment, functions, and powers of Commissioner.
Children, Young Persons, and Their Families Act 1989 The Children, Young Persons, and Their Families Act 1989 provides for the wellbeing of children, young persons, and their families and family groups.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Quality and Timeliness Standards will be agreed with the Minister for Social Development and Employment and are defined in the Output Agreement.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Children's Commissioner (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Children's Commissioner: Operating Pressures 2005/06 71 71 71 71 71
Children's Commissioner 2004/05 133 133 133 133 133

Connected Communities (M63)#

Scope of Appropriation

Funding of services that strengthen and support communities and community functioning, and which assist communities to support families in improving their family circumstances.

Expenses

Expenses - Connected Communities (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,606 2,606 2,577

Output Performance Measures and Standards

Output Performance Measures and Standards - Connected Communities (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Social Service Development for Refugee and Migrant groups:

     
The percentage of projects funded that achieve their contracted outputs within agreed timeframes will be no less than: 90% 90% 90%
The number of refugee and migrant community groups throughout the country that are provided with assistance to develop the skills, knowledge and confidence they need to become fully functioning participants within their communities will be no less than: 30 30 30

Community Initiatives Fund:

     
The percentage of outputs contained in the contracts that are delivered within agreed timeframes will be no less than: 90% 90% 90%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Connected Communities (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Pathway to Partnership: Strengthening the Child and Family Services Sector 2007/08 9,748 9,748 - - -

Counselling and Rehabilitation Services (M63)#

Scope of Appropriation

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.

Expenses

Expenses - Counselling and Rehabilitation Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 10,963

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Counselling and Rehabilitation Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
Number of new clients receiving intervention: 23,000 - 27,000 23,000 - 27,000 23,000 - 27,000

Quality

     
Percentage of clients completing intervention: 80 - 90% 80 - 90% 80 - 90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Counselling and Rehabilitation Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service or Child and Family Support Service (under section 396), or a Community Service (under section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Counselling and Rehabilitation Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Care and Protection System Service Response to Demand 2006/07 988 988 988 988 988
First Principles Baseline Review 2004/05 52 52 - - -

Education and Prevention Services (M63)#

Scope of Appropriation

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.

Expenses

Expenses - Education and Prevention Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 5,771

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Education and Prevention Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
Number of new clients receiving intervention: 26,000 - 32,000 26, 000 - 32,000 26,000 - 32,000

Quality

     
Percentage of clients completing intervention: 75 - 85% 75 - 85% 75 - 85%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Education and Prevention Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. The general duties of the Chief Executive as set out in section 7 of the Children, Young Persons, and Their Families Act 1989 cover the provision of education and advice services for the prevention of child abuse and neglect, and the promotion of the wellbeing of children, young people and their families.
Education and Prevention Services include:
  • community liaison presentations
  • community liaison networking
  • every community programme
  • promotional services.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Education and Prevention Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Care and Protection System Service Response to Demand 2006/07 363 363 363 363 363
First Principles Baseline Review 2004/05 180 180 - - -

Families Commission (M63)#

Scope of Appropriation

Provision of services from the Families Commission to promote the interests of the full range of New Zealand families and promote better understanding of family issues and needs amongst government agencies and in the wider community, and to undertake a research programme.

Expenses

Expenses - Families Commission (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,670 7,670 8,170

Reasons for Change in Appropriation

The increase in this appropriation is due to a one off transfer of funding to the Children's Commissioner in 2007/08.

Output Performance Measures and Standards

Output Performance Measures and Standards - Families Commission (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Work items will be delivered as specified in the work programme agreed with the Minister for Social Development and Employment Work items delivered in accordance with the work programme Work items delivered in accordance with the work programme Work items delivered in accordance with the work programme
Estimated registered members on the Couch website as at 30 June 2009 will be: 4,000 4,000 4,500
The number of research grants awarded will be: 12 12 6
The number of family events or conferences participated in will be: 6 10 8

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Families Commission (M63) - Social Development
Reference Conditions
Families Commission Act 2003 The Families Commission Act 2003 provides for the establishment, functions, and powers of Commission.
Crown Entities Act 2004 The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Timeliness
  • All work items specified in the work programme agreed with the Minister for Social Development and Employment will be delivered within agreed deadlines.
  • 95% of research reports from awarded research fund grants are available for release within two months of completion of final report from grant recipient.
Quality
  • All major projects will be monitored and reviewed by the Commission's Board.
  • Process: All major projects will be delivered in accordance with the Commission's quality management system.
  • Technical robustness: All research projects are in accordance with the Commission's quality management system.
Measurement of meeting work items in accordance with work programme This will be monitored by the Ministry of Social Development in accordance with the process outlined in the Memorandum of Understanding agreed between the Ministry and the Families Commission.

Family Wellbeing Services (M63)#

Scope of Appropriation

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.

Expenses

Expenses - Family Wellbeing Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 45,637

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Family Wellbeing Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
Number of new clients or families receiving intervention will be between: 62,000 - 68,000 62,000 - 68,000 62,000 - 68,000
Number of schools receiving services from the Social Workers in Schools programme will be between: 330 - 350 330 - 350 330 - 350
Number of full time equivalent social workers employed in the Social Workers in Schools programme will be: 125 125 125

Quality

     
Percentage of clients/families completing a planned intervention will be between: 85 - 90% 85 - 90% 85 - 90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Family Wellbeing Services (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service, or Child and Family Support Service (under section 396), or a Community Service (under section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.
Family Wellbeing Services include:
  • funding planning
  • service and provider development
  • funding agreements
  • provider assessment and approval.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family Wellbeing Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Multi-Agency Support Services in Secondary Schools (MASSiS) 2007/08 1,868 - - - -
Care and Protection System Service Response to Demand 2006/07 700 700 700 700 700
Blueprint Investment Strategy 2005/06 498 498 - - -
Services for Children Witnessing Family Violence 2005/06 889 889 - - -
Early Intervention for At Risk Families 2004/05 8,968 8,968 8,968 8,968 8,968
First Principles Baseline Review 2004/05 1,098 1,098 - - -
Reforms in Social Assistance 2004/05 340 - - - -
Social Workers in Schools 2004/05 4,161 4,161 4,161 4,161 4,161

Scope of Appropriation

This appropriation is limited to the provision of life-skills and employment-related training activities for at-risk youth within the Eastern Bay of Plenty.

Expenses

Expenses - Life Skills and EmploymentRelated Training Activities (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 543 543 543

Output Performance Measures and Standards

Output Performance Measures and Standards - Life Skills and EmploymentRelated Training Activities (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The provision of services within the Eastern Bay of Plenty will be delivered annually to no less than: Revised measure in 2008/09 Revised measure in 2008/09 20 young people
The proportion of participants who commence either full-time paid employment or further training within eight weeks of completing training will be no less than: 75% 75% 75%
A review will be completed to evaluate the effectiveness of the services delivered: New measure in 2008/09 New measure in 2008/09 Review completed

Retirement Commissioner (M63)#

Scope of Appropriation

Provision of services from the Retirement Commissioner to develop and promote methods of improving the effectiveness of retirement income policies. This is achieved through the publishing of information and the delivery of a comprehensive public education programme on retirement savings issues.

Expenses

Expenses - Retirement Commissioner (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,747 5,747 5,682

Output Performance Measures and Standards

Output Performance Measures and Standards - Retirement Commissioner (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The average number of monthly visits to www.sorted.org.nz will be between: 80,000 - 120,000 110,000 110,000 - 140,000
The average number of monthly calculations made via www.sorted.org.nz will be between: Revised measure for 2008/09 Revised measure for 2008/09 500,000 - 700,000
The average number of Sorted brochures distributed each month will be between: New measure for 2008/09 New measure for 2008/09 8,000 - 10,000
The number of research and monitoring projects on retirement savings behaviour will be: 4 4 4

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Retirement Commissioner (M63) - Social Development
Reference Conditions
New Zealand Superannuation and Retirement Income Act 2001. Part 4 of the New Zealand Superannuation and Retirement Income Act 2001 provides for the constitution, appointment, functions, powers, and duties of the Commissioner.
Crown Entities Act 2004. The Crown Entities Act 2004:
  • provides for different categories of Crown entities and for each category to have its own framework for governance (including the degree to which the Crown entity is required to give effect to, or be independent of, government policy)
  • clarifies the powers and duties of board members in respect of the governance and operation of Crown entities, including their duty to ensure the financial responsibility of the Crown entity
  • sets out reporting and accountability requirements.
Quality Standard. Sorted users will be regularly surveyed over the views on the effectiveness of their site visits. Independent review panels will assess the appropriateness of the research projects. The effectiveness of education programmes will be measured.
Timeliness Standard. Key dates as specified in the project plans will be met and reflect agreed priorities.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Retirement Commissioner (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
KiwiSaver Financial Education Programme 2008/09 - 1,900 1,900 2,000 2,000
Retirement Village Dispute Panel Functions and Registration Fees 2006/07 (105) (105) (105) (105) (105)
Generic Financial Education Programme in Support of KiwiSaver 2005/06 1,965 - - - -
Retirement Commissioner - Retirement Villages Act 2003 2005/06 204 204 204 204 204
Retirement Commissioner Capability 2005/06 200 200 200 200 200
Retirement Commissioner: Periodic Review Group Report 2004/05 111 111 111 111 111

Strengthening Providers and Communities (M63)#

Scope of Appropriation

Purchase of services that contribute to strengthening the capacity and capability of providers to deliver strong and effective social services.

Expenses

Expenses - Strengthening Providers and Communities (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 4,886

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Output Performance Measures and Standards

Output Performance Measures and Standards - Strengthening Providers and Communities (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
Number of groups/organisations whose infrastructure was supported by a national body will be between: 180 - 210 180 - 210 180 - 210
Number of groups/organisations receiving organisation development funding eg, training business mentoring or other forms of development will be between: 260 - 320 260 - 320 260 - 320

Quality

     
Satisfaction survey results indicate the level of satisfaction with service received from a national body will be between: 80 - 90% 80 - 90% 80 - 90%
Percentage of objectives set out in service provider's development and/or training plans will be between: 80 - 90% 80 - 90% 80 - 90%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Strengthening Providers and Communities (M63) - Social Development
Reference Conditions
Children, Young Persons, and Their Families Act 1989. Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can approve a body or organisation as an Iwi Social Service, Cultural Social Service and Family Support Service (section 396), or a Community Service (section 403). The Chief Executive may also provide financial assistance to Community Services and contract with them for the provision of services.
Strengthening Providers and Communities Services include:
  • funding planning
  • service and provider development
  • funding agreements
  • provider assessment and approval.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strengthening Providers and Communities (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
First Principles Baseline Review 2004/05 31 31 - - -

Strong Families (M63)#

Scope of Appropriation

Purchase of services to improve outcomes for families and their members. These services aim to support vulnerable families with a focus on prevention and early intervention.

Expenses

Expenses - Strong Families (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 69,354 69,354 109,478 142,370 193,246 249,196

Reasons for Change in Appropriation

The increase in this appropriation is largely due to additional funding for the Pathway to Partnership initiative in Budget 2008 to assist in sustaining the broader social services NGO sector.

Output Performance Measures and Standards

Output Performance Measures and Standards - Strong Families (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Prevention Initiatives

     
The number of families and individuals who will receive home and life skills mentoring education will be between: 300 - 500 300 - 500 300 - 500
The number of people who will receive elder abuse and neglect prevention services education will be between: 850 - 950 850 - 950 850 - 950

Early Intervention Initiatives

     
The number of "current active clients" receiving Family and Early Start services will be between: 4,300 - 4,800 4,300 - 4,800 5,500 - 6,000
The number of Family Start sites will be no less than: 26 26 26
The number of advocates acting as a resource for people working with children and young people affected by family violence will be between: 25 - 30 25 - 30 25 - 30
The number of current study awards, Social Work and Family Start combined will be between: 260 - 290 260 - 290 260 - 290
The number of students who have completed their study and graduated since the inception of Study Awards will be between: 67 - 77 67 - 77 105 - 130

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Strong Families (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 - 25,016 66,847 119,256 175,206
Early Years: Giving Children the Best Start in Life 2006/07 755 1,488 - - -
Reducing Violence Within Families 2006/07 1,539 1,839 1,699 199 199
Early Intervention for Vulnerable Children - Expansion of Family Start 2005/06 1,376 1,376 1,376 1,376 1,376
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 693 924 786 786 786
Early Intervention for Vulnerable Children - Pilot Parenting Support to Complement Well-Child 2005/06 444 656 - - -
Early Intervention for Vulnerable Children - Services for Children Witnessing Family Violence 2005/06 2,201 3,088 3,348 3,348 3,348
Increase in Funding for Elder Abuse and Neglect Prevention 2005/06 627 627 627 627 627
NGO Study Awards 2005/06 988 988 988 988 988
Strengthening Families Review 2005/06 2,750 2,750 2,750 2,750 2,750

Student Placement Services (M63)#

Scope of Appropriation

Provision of placement services for students for holiday and term employment.

Expenses

Expenses - Student Placement Services (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 3,512 3,512 3,512

Output Performance Measures and Standards

Output Performance Measures and Standards - Student Placement Services (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of weeks that students are connected to work placements through services provided by Student Job Search will be between: 210,000 weeks of work 196,300 weeks of work 194,000 - 199,000 weeks of work
The estimated earnings by students who are connected to work placements through services provided by Student Job Search will be between: $81m $83.1m $81m - $86m
The percentage of independently surveyed students satisfied with the service they receive from Student Job Search will be between: 80% 80% 80 - 85%

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Student Placement Services (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Student Job Search 2004/05 494 494 494 494 494

Vocational Services for People with Disabilities (M63)#

Scope of Appropriation

Provision of vocational services for people with disabilities including community participation and employment services.

Expenses

Expenses - Vocational Services for People with Disabilities (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 85,911 85,911 88,240

Reasons for Change in Appropriation

The increase in this appropriation is partially due to additional funding for 75 very high needs school leavers.

Output Performance Measures and Standards

Output Performance Measures and Standards - Vocational Services for People with Disabilities (M63) - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard

Quantity

     
The number of individuals placed or supported to remain in paid open employment will be: 9,300 9,300 9,300
The number of individuals receiving a range of Vocational Services will be: 20,000 20,000 20,000

Quality

     
Independent quality reviews completed for 20 service providers. New measure in 2008/09 New measure in 2008/09 20 reviews completed

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Vocational Services for People with Disabilities (M63) - Social Development
Reference Conditions
Cabinet Policy as set out in Pathways to Inclusions: Improving Vocational Services for People with Disabilities. Pathways to Inclusion sets out the government strategy for vocational services. It aims to increase:
  • the participation of people with disabilities in employment
  • the participation of people with disabilities in their communities.
Standard for independent quality reviews. These service evaluations are based on the principles and philosophy promoted by the Standards and Monitoring Services Trust.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Vocational Services for People with Disabilities (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Disability Allowance for Vocational Services - Streamlining payments to Vocational Services providers and improving service delivery to clients 2005/06 15,252 15,252 15,252 15,252 15,252
New Services for Sickness and Invalids' Benefit Recipients 2005/06 2,667 2,667 2,667 2,667 2,667
Vocational Services for Very High Needs School Leavers 2005/06 3,078 4,272 4,272 4,272 4,272
High Needs School Leavers-Additional funding 2003/04 212 212 212 212 212
Jobs Jolt Initiatives 2003/04 1,530 1,530 1,530 1,530 1,530

Summary of Service Providers#

Summary of Service Providers - Summary of Service Providers - Social Development
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment

Crown entities

         
Children's Commissioner          
  • Children's Commissioner
2,257 2,257 1,757 Office of the Children's Commission Annual Report Ongoing
Families Commission          
  • Families Commission
7,670 7,670 8,170 Families Commission Annual Report Ongoing
Retirement Commission          
  • Retirement Commission
5,747 5,747 5,682 Retirement Commission Annual Report Ongoing

Non-government organisations

         
Intellectual Disability Empowerment in Action (IDEA) Services Limited          
  • Vocational Services for People with Disabilities
25,943 25,943 Contract information unavailable for 2008/09. Section 32A report  
Workbridge Incorporated          
  • Vocational Services for People with Disabilities
17,223 17,223 8,768 Section 32A report 30 June 2010
Te Puna Whaiora, Children's Health Camp          
  • Strong Families
12,191 12,191 12,191 Section 32A report 30 June 2010 ($12,183,000)
          30 June 2011 ($8,000)
National Collective Women's Refuge          
  • Counselling and Rehabilitation Services
194 194 Contract information unavailable for 2008/09.    
  • Education and Prevention Services
304 304 Contract information unavailable for 2008/09.    
  • Family Wellbeing Services
3,934 3,934 Contract information unavailable for 2008/09. Section 32A report  
  • Strengthening Providers and Communities
330 330 Contract information unavailable for 2008/09.    
  • Strong Families
313 313 313    
Total National Collective Women's Refuge 5,705 5,705 313    
Family Start Manukau          
  • Strong Families
3,508 3,508 3,508 Section 32A report  
Student Job Search          
  • Student Placement Services
3,500 3,500 3,500 Section 32A report  
Relationship Services          
  • Counselling and Rehabilitation Services
2,317 2,317 2,260    
  • Education and Prevention Services
5 5 5    
  • Family Wellbeing Services
214 214 150 Section 32A report 30 June 2010 ($2,442,797)
  • Strengthening Providers and Communities
42 42 41   30 June 2011 ($4,000)
  • Strong Families
515 515 515    
Total Relationship Services 3,093 3,093 2,971    
Anglican Trust for Women & Children          
  • Counselling and Rehabilitation Services
57 57 Contract information unavailable for 2008/09.    
  • Family Wellbeing Services
1,162 1,162 Contract information unavailable for 2008/09. Section 32A report 30 June 2011 ($43,911)
  • Strong Families
1,850 1,850 1,850    
Total Anglican Trust for Women & Children 3,069 3,069 1,850    
Barnardos New Zealand          
  • Counselling and Rehabilitation Services
90 90 76    
  • Education and Prevention Services
31 31 31 Section 32A report 30 June 2010 ($397,333)
  • Family Wellbeing Services
1,964 1,964 1,588   30 June 2011($4,000)
  • Strong Families
606 606 606    
Total Barnardos New Zealand 2,691 2,691 2,301    
Kirikiriroa Family Services Trust          
  • Strong Families
2,595 2,595 2,595 Section 32A report 30 June 2011 ($13,866)
Family Works          
  • Connected Communities
5 5 5    
  • Education and Prevention Services
62 62 62 Section 32A report  
  • Family Wellbeing Services
2,216 2,216 472    
  • Strong Families
232 232 232    
Total Family Works 2,515 2,515 771    
CCS Disability Action Incorporated          
  • Vocational Services for People with Disabilities
2,024 2,024 2,024 Section 32A report  
Open Home Foundation          
  • Counselling and Rehabilitation Services
53 53 53    
  • Education and Prevention Services
24 24 25 Section 32A report  
  • Family Wellbeing Services
1,733 1,733 1,659    
Total Open Home Foundation 1,810 1,810 1,737    
Anglican Family Care Centre          
  • Counselling and Rehabilitation Services
69 69 Contract information unavailable for 2008/09.    
  • Family Wellbeing Services
618 618 Contract information unavailable for 2008/09. Section 32A report 30 June 2010 ($15,777)
  • Strong Families
1,120 1,120 1,120   30 June 2011 ($9,244)
Total Anglican Family Care Centre 1,807 1,807 1,120    
Waipareira Pasifika          
  • Strong Families
1,388 1,388 1,388 Section 32A report 30 June 2011 ($45,600)
Framework Trust          
  • Vocational Services for People with Disabilities
1,384 1,384 974 Section 32A report  
Workforce Auckland Incorporated          
  • Vocational Services for People with Disabilities
1,374 1,374 928 Section 32A report  
Taiwhenua O Heretaunga          
  • Strong Families
1,144 1,144 1,144 Section 32A report  
Presbyterian Support Southland          
  • Strong Families
1,138 1,138 1,138 Section 32A report 30 June 2010 ($1,063,201)
          30 June 2011 ($44,977)
Turuki Health Care          
  • Strong Families
1,130 1,130 1,130 Section 32A report 30 June 2011 ($9,244)

This table presents the 20 major service providers Vote Social Development has funding arrangements with.

The above table summarises funding to be allocated through Vote Social Development to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Children and Young People Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Hardship Assistance, Independent Youth Benefit, Invalid's Benefit, Orphan's/Unsupported Child's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, and Study Scholarships and Awards.
Outcome - Working Age People Accommodation Assistance, Benefits Paid in Australia, Childcare Assistance, Disability Assistance, Domestic Purposes Benefit, Employment-Related Training Assistance, Hardship Assistance, Invalid's Benefit, Sickness Benefit, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, Transition to Work, Transitional Supplement, Unemployment Benefit and Emergency Benefit, and Widow's Benefit.
Outcome - Older People Accommodation Assistance, Benefits Paid in Australia, Disability Assistance, Hardship Assistance, NZ Superannuation, Special Circumstance Assistance, Student Allowances, Study Scholarships and Awards, and Unemployment Benefit and Emergency Benefit.
Outcome - Families and Whanau Accommodation Assistance and Special Circumstance Assistance.
Outcome - Communities, Hapu and Iwi Childcare Assistance, Family Start/NGO Awards, Special Annuities, Special Circumstance Assistance, and Study Scholarships and Awards.

Appropriations for benefits and other unrequited expenses and for capital expenditure items in this Vote are forecast on a mid-point basis. This means it is to be expected that actual expenditure on some of the forecast items will be more than the mid-point forecast and on other forecast items less than the mid-point forecast. As an appropriation is a legal upper limit on expenditure, using a mid-point forecast to determine the amount of the appropriation inevitably means that there will be unappropriated expenditure for some forecast items, requiring separate ministerial approval and parliamentary confirmation, or parliamentary validation.

To reduce the likelihood of unappropriated expenditure on forecast items in this Vote, the cumulative appropriation for each forecast item in this Vote in the 2007/08 Supplementary Estimates includes for the last three months of 2007/08 not the mid-point forecast but a reasonable upper bound of the forecast range. The estimated actual amounts for 2007/08 and the amounts to be appropriated for 2008/09 shown in the 2008/09 Estimates of Appropriations and here in the Information Supporting the Estimates for forecast items in this Vote continue to be on a mid-point forecast basis. These are the amounts that continue to be used in the fiscal forecasts in the Budget Economic and Fiscal Update.

In cases where the amounts have been split into subset parts below, the 2007/08 Budgeted figures all exclude any such additional amounts and so equal the Estimated Actual amounts.

Accommodation Assistance (M63)

Scope of Appropriation

This appropriation is limited to the Accommodation Supplement, Special Transfer Allowance, and Away From Home Allowance to persons to cover accommodation costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Accommodation Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 892,230 888,561 911,067 935,021 953,179 976,931
Accommodation Supplement (incorporating Away from Home Allowance) 888,435 888,435 910,964 934,933 953,105 976,868
Special Transfer Allowance 126 126 103 88 74 63

Reasons for Change in Appropriation

From 1 July 2008 Accommodation Supplement and Special Transfer Allowance join to create this appropriation. Average rate increases due to higher mortgage interest rates and rental prices are expected to drive the increase between 2007/08 and 2008/09. Thereafter the rate of increase in housing costs is expected to slow, with the number of people taking up Accommodation Assistance accounting for half of the increase in expenditure between 2008/09 and 2011/12.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Accommodation Assistance (M63) - Social Development
Reference Conditions
Accommodation Supplement is paid under sections 61E to 61EC of the Social Security Act 1964. The Accommodation Supplement provides a 70% subsidy for housing costs that exceed 25% of the recipient's income (for renters or boarders) or 30% of the recipient's income (for homeowners), up to a set maximum amount. The level of assistance depends on the recipient's accommodation costs, benefit payment rate, where the recipient lives and on his or her family size. The Supplement is a non-taxable payment that is asset and (for non-beneficiaries) income tested.
Away from Home Allowance is paid under the Away from Home Allowance Welfare Programme pursuant to section 124(1)(d) of the Social Security Act 1964. The Away from Home Allowance provides assistance with accommodation costs for the caregivers of dependent 16-17 year olds who move away from home to undertake tertiary study or an approved employment related training course. The level of Allowance is based on the same formula as for Accommodation Supplement. The Allowance is a non-taxable payment.
Special Transfer Allowance is paid under the Special Transfer Allowance Programme 2000 pursuant to section 124(1)(d) of the Social Security Act 1964. The Special Transfer Allowance provides assistance with accommodation costs to recipients of the Special Transfer Allowance prior to November 2000 and to former Tenure Protection Allowance recipients who have had their present house sold to a private landlord by Housing New Zealand Corporation. Tenure Protection Allowance ceased to exist with the introduction of the Income Related Rental Subsidy in November 2000. This Allowance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Accommodation Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increasing the Student Allowance Parental Income Threshold by 10% 2008/09 - 115 237 249 262
Lowering the Age Limit for Student Allowance Parental Income Testing by One Year 2008/09 - 159 325 338 352
Student Achievement Component: Access in priority areas 2008/09 - 30 56 29 (25)
Accommodation Supplement Effects HNZC Housing Applications 2007/08 (2,607) (8,057) (11,065) (11,065) (11,065)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 1 2 2 2 2
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 48 98 101 103 103
Accommodation Supplement Effects of HNZC Housing Acquisitions 2006/07 561 461 449 449 449
Aligning Student Support with Funded Qualifications 2006/07 (109) (111) (113) (113) (113)
Increasing the Student Allowance Parental Income Thresholds 2006/07 80 82 83 83 83
Accommodation Supplement (Retirement Villages) 2005/06 649 - - - -
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 91 91 91 91 91
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 75 75 75 75 75
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 8 8 8 8 8
Accommodation Supplement Automated Reassessment of Entitlement in line with the Annual General Adjustment 2004/05 (6,414) (6,414) (6,414) (6,414) (6,414)
Benefit Stand down - Changes to remove barriers to seasonal work 2004/05 272 272 272 272 272
Extending the Student Allowance Parental Income Test to Married Students under 25 with no Dependents 2004/05 (13) (13) (13) (13) (13)
HNZC's Housing Response in Auckland 2004/05 - (2,543) (2,543) (2,543) (2,543)
Increasing Student Allowance Parental Income Thresholds 2004/05 678 678 678 678 678
Legal Recognition of Relationships 2004/05 (790) (790) (790) (790) (790)
Removing the Work history Criterion for the Independent Circumstances Grant 2004/05 (180) (180) (180) (180) (180)
Working for Families-Housing 2004/05 142,771 142,771 142,771 142,771 142,771
Jobs Jolt Initiatives 2003/04 (3,401) (3,401) (3,401) (3,401) (3,401)
Residential Social Rehabilitation Programmes 2003/04 (330) (330) (330) (330) (330)

Accommodation Supplement (M63)#

Scope of Appropriation

Provision of financial assistance to people with high accommodation costs relative to income and with limited cash assets. Paid to people who meet the eligibility criteria under sections 61E to 61EC of the Social Security Act 1964.

Expenses

Expenses - Accommodation Supplement (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 892,094 888,435 -

Reasons for Change in Appropriation

This appropriation forms part of Accommodation Assistance from 1 July 2008.

Benefits Paid in Australia (M63)#

Scope of Appropriation

Reimbursement to the Australian Government for income support assistance provided to New Zealanders eligible under the 1994 Reciprocal Agreement, which was terminated for new entrants on 1 July 2002. From 1 July 2002 the Social Welfare (Reciprocity with Australia) Order 2002 came into force, with payments now reflecting pre-agreed amounts in Australian currency before adjusting for annual inflation.

Expenses

Expenses - Benefits Paid in Australia (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 57,903 57,903 51,041 45,482 38,488 33,017

Reasons for Change in Appropriation

Expenditure for this item will reduce in line with the agreed annual amounts payable. It is subject to Australian cost of living adjustments and exchange rate fluctuations.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Benefits Paid in Australia (M63) - Social Development
Reference Conditions
Benefits Paid in Australia are paid under the Social Welfare (Reciprocity with Australia) Order 2002 issued pursuant to section 19 of the Social Welfare (Transitional Provisions) Act 1990. This appropriation is a result of the 1994 Social Security Agreement between the Australian and New Zealand Governments to provide income support to New Zealanders resident in Australia.  The Agreement required the New Zealand Government to reimburse the Australian Government for assistance provided. This agreement was later revised in 2002 to allow New Zealand to make direct payments to recipients of New Zealand Superannuation and Invalid's Benefit for applications made after 1 July 2002. Reimbursement provisions for people who were receiving payment as at June 2002 under the 1994 Agreement were 'grandparented'.

Child Disability Allowance (M63)#

Scope of Appropriation

Provision of non-means tested income support for the principal caregiver of a child with a serious disability. Paid in accordance with the criteria set out in sections 39A to 39E of the Social Security Act 1964.

Expenses

Expenses - Child Disability Allowance (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 88,340 88,092 -

Reasons for Change in Appropriation

This appropriation forms part of Disability Assistance from 1 July 2008.

Childcare Assistance (M63)#

Scope of Appropriation

Provision of 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 issued under that Act.

Expenses

Expenses - Childcare Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 154,932 150,983 167,657 187,126 204,437 216,964

Reasons for Change in Appropriation

Over 70% of the increase between 2007/08 and 2008/09 is due to expected growth in hours per week of care claimed. About one-quarter of the increase is attributable to more children accessing Childcare Assistance and the remainder reflecting the annual cost of living adjustment. The increase is partly reduced by the addition to the 2007/08 appropriation to reduce the likelihood of an overspend. Further growth in the number of children assumes a greater role in the outyears, reaching 52,000 by June 2012 from 46,000 expected in June 2009. Accumulated cost of living adjustments account for nearly 30% of outyear growth.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Childcare Assistance (M63) - Social Development
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: entering work or training; with serious illness and disability; or whose dependent child or children have a serious illness or disability. 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, or up to 9 hours per week in most other cases. There are three standard levels of subsidy depending on household income. The highest rate is currently $3.51 per child per hour. The Childcare Subsidy may be used in combination with Free Early Childhood Education for 3 and 4 year olds where hours exceed 6 per day or 20 per week. The Subsidy is a non-taxable income tested payment.
OSCAR subsidy assists with out-of-school care costs for caregivers to take up or remain in paid employment. OSCAR covers 5 to 13 years olds, or 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. Rates of payment per hour for OSCAR are the same as for the Childcare Subsidy. The OSCAR subsidy is a non-taxable income tested payment.
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 maximum rate is $6.55 per hour. The Assistance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Childcare Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Implementing Free Early Childhood Education 2007/08 (20,508) (21,138) (21,066) (21,066) (21,066)
Early Intervention for Vulnerable Children - Family Start Access to Early Education 2005/06 1,806 1,841 1,841 1,841 1,841
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 4,578 5,338 5,338 5,338 5,338
Enhancing Parents' Work Choices 2005/06 8,808 9,426 9,426 9,426 9,426
Temporary Additional Support: Measures to Prevent Unintended Disadvantage 2005/06 237 243 249 249 249
Working for Families-Childcare 2004/05 34,552 34,552 34,552 34,552 34,552

Disability Assistance (M63)#

Scope of Appropriation

This appropriation is limited to the Disability Allowance to persons 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 issued under that Act.

Expenses

Expenses - Disability Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 367,276 366,512 387,390 410,476 432,510 456,476
Child Disability Allowance 88,092 88,092 97,906 107,408 116,385 125,505
Disability Allowance 278,936 278,420 289,484 303,068 316,125 330,971

Reasons for Change in Appropriation

From 1 July 2008 Disability Allowance and Child Disability Allowance join to create this appropriation.
Upward drift in costs increase the average payment rate and accounts for half of the 2007/08 to 2008/09 increment for Disability Allowance. In the outyears the ongoing growth in the number of older New Zealand Superannuation recipients is expected to drive growth in expenditure. The number of recipients will grow from about 235,000 today to more than 250,000 by 2011/12. The number of Child Disability Allowance recipients continues to grow and will reach 53,000 at the end of 2011/12 from 42,000 in March 2008.

In 2007/08 the Core Estimates Disability Assistance of $278.936 million (Budgeted) and $278.420 million (Estimated Actual) only reflects Disability Allowance. In 2008/09 both Disability Allowance and Child Disability Allowance are included in the Disability Assistance appropriation ($387.390 million). See Part 1.4 - Reconciliation of Changes in Appropriation Structure for a complete reconciliation.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Disability Assistance (M63) - Social Development
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, sensory, psychiatric or intellectual disability, need constant care and attention because of that disability and be likely to need that care for more than 12 months.  The current rate of Child Disability Allowance is $40.73 per week. This Allowance is non-taxable payment.
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, subsidised or provided by other agencies. The maximum rate payable for Disability Allowance is $54.05 per week. Disability Allowance may be paid to persons receiving main benefits and, on an income-tested basis, to New Zealand Superannuation and Veteran's Pension recipients and to low-income earners. The Allowance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Disability Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 78 78 78 78 78
Disability Allowance for People in Residential Care 2005/06 14,413 14,731 15,249 15,249 15,249
Disability Allowance for Vocational Services - Streamlining payments to Vocational Services providers and improving service delivery to clients 2005/06 (13,479) - - - -
Progressive Removal of Asset Testing for older People in Long-Term Residential Care 2005/06 800 800 800 800 800
Legal Recognition of Relationships 2004/05 (117) (117) (117) (117) (117)
Jobs Jolt Initiatives 2003/04 (673) (673) (673) (673) (673)
Residential Social Rehabilitation Programmes 2003/04 (133) (133) (133) (133) (133)

Domestic Purposes Benefit (M63)#

Scope of Appropriation

Provision of income support for sole parents, caregivers of sick or infirm people or women alone, whose domestic circumstances exclude them from fully participating in the labour force. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses

Expenses - Domestic Purposes Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,479,573 1,475,322 1,512,754 1,550,996 1,592,040 1,644,272

Reasons for Change in Appropriation

The number of recipients is expected to fall by about 800 between 2007/08 and 2008/09, with the cost of living adjustment accounting for the increase in expenditure. In the outyears the number of recipients will continue to decrease slowly with accumulated cost of living adjustments causing the increased annual expenditure.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Domestic Purposes Benefit (M63) - Social Development
Reference Conditions
Domestic Purposes Benefit is paid under sections 27A to 27H of the Social Security Act 1964. Domestic Purposes Benefit provides assistance for eligible sole parents, older women alone and caregivers of a sick or infirm person. The net weekly rates paid range from $186.28 per week for a single person aged 16 to 17 years and up to $302.40 per week for a sole parent caring for sick or infirm. The standard sole parent net rate is $263.78. The benefit is income tested. The appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Domestic Purposes Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 455 527 542 545 545
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 (18,966) (22,223) (22,223) (22,223) (22,223)
Benefit Stand down - Changes to remove barriers to seasonal work 2004/05 213 213 213 213 213
Encourage Sole parent beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (4,971) (4,971) (4,971) (4,971) (4,971)
Legal Recognition of Relationships 2004/05 (2,862) (2,862) (2,862) (2,862) (2,862)
Working for Families - Family Income Assistance 2004/05 (123,290) (123,290) (123,290) (123,290) (123,290)
Working for Families - Housing 2004/05 970 970 970 970 970

Scope of Appropriation

Provision of assistance with costs of undertaking approved employment related training, which are paid in accordance with the criteria set out in delegated legislation under the Social Security Act 1964.

Expenses

Expenses - Employment Related Training Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 29,698 29,009 25,747 25,864 26,047 26,431
Training Incentive Allowance 28,415 28,415 25,186 25,303 25,486 25,869
Course Participation Assistance Programme 594 594 561 561 561 562

Reasons for Change in Appropriation

Prior to 1 July 2008 this item was called Training Incentive Allowance. This is a capped item that has tended to underspend in recent years. A significant amount has been transferred to help fund the Pathway to Partnership package to support sustainable NGO services. More has been transferred in the 2008/09 and later years than in the 2007/08 year and accounts for the decrease in forecast expenditure between those two years.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Employment Related Training Assistance (M63) - Social Development
Reference Conditions
Training Incentive Allowance is paid under the Training Incentive Allowance Programme pursuant to section 124(1)(d) of the Social Security Act 1964. To qualify for the Training Incentive Allowance a client must be receiving a qualifying benefit and be enrolled in a course that: is approved employment related training, and attracts Student Component Funding or other Government funding; or is considered to meet government quality and relevance standards but is not student component funded, eg, secondary school courses and university pre-enrolment courses.  This Allowance provides payment for up to $93.40 a week for each week of the course. This Allowance also includes provision for payments made under the Teen Pilot Project where payments can be made to some teenage parents aged under 18 to cover childcare costs to enable those parents to attend secondary education.
Course Participation Assistance is paid under the Course Participation Assistance Programme pursuant to section 124(1)(d) of the Social Security Act 1964. Course Participation Assistance helps with costs incurred through participating in short-term employment related training courses or programmes. The payment is available to assist with childcare and transport costs and some short course fees, for example, to obtain a heavy traffic licence. This Assistance is not available where a Training Incentive Allowance is already paid for the same course. Up to $1,000 is available over a 52 week period. It is subject to income and asset tests. The Assistance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Employment Related Training Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 - (17,673) (17,646) (17,454) (17,070)
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2007/08 (14,502) - - - -
Pilot Training Incentive Allowance Eligibility Extension to Teenage Parents 2004/05 150 150 150 150 150

Family Start/NGO Awards (M63)#

Scope of Appropriation

Payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications.

Expenses

Expenses - Family Start/NGO Awards (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 539 539 660
Family Start family/whanau Awards 227 227 300
Non-Government Organisation (NGO) Awards 312 312 360

Reasons for Change in Appropriation

Maximum amounts per annum and per award (typically up to three years) apply to these items.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Family Start/NGO Awards (M63) - Social Development
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.
Non-Government Organisation (NGO) Awards are paid under Cabinet decisions. The NGO Awards pay for course fees that enable NGO staff to study for social work qualifications that meet the prerequisite educational qualifications for social worker registration.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Family Start/NGO Awards (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Early Intervention for Vulnerable Children - Family Start Training and Qualifications 2005/06 259 300 255 255 255
NGO Study Awards 2005/06 525 525 525 525 525

Hardship Assistance (M63)#

Scope of Appropriation

This appropriation is limited to the Funeral Grants, Live Organ Donors Assistance, Special Benefit, Special Needs Grants 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 issued under that Act.

Expenses

Expenses - Hardship Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 183,869 181,833 170,382 169,701 169,687 170,127
Funeral Grants 7,930 7,930 8,362 8,621 8,867 9,124
Special Benefit 70,738 70,738 53,077 45,898 43,317 42,638
Special Needs Grants (incorporating Live Organ Donors Assistance) 50,281 50,281 43,741 44,596 45,101 45,125
Temporary Additional Support 52,884 52,884 65,202 70,586 72,402 73,240

Reasons for Change in Appropriation

From 1 July 2008 Special Benefit, Temporary Additional Support and Special Needs Grants (incorporating Funeral Grants) are combined to create this appropriation.

The number of people in receipt of a Special Benefit will continue to fall, at a slowing pace. This payment was closed to new applicants from April 2006. Temporary Additional Support replaced Special Benefit for new applicants and is expected to continue to increase in line with growing applications from people in financial hardship. The drop in Special Needs Grants between 2007/08 and 2008/09 reflects the one off $7.400 million transitional payment made in July 2007 to 24,500 beneficiaries switched from a fortnightly payment cycle to a weekly payment cycle.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Hardship Assistance (M63) - Social Development
Reference Conditions
Funeral Grants are paid under sections 61D to 61DE of the Social Security Act 1964. Funeral Grants are designed to help people with actual and reasonable funeral costs only and is not to cover the entire cost of funeral expenses. The Grant depends on the assessable 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 2004 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 whose Special Benefit's have not been cancelled.  
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 assists people who have an immediate and essential need or emergency and have no other means of paying for it. The Grant includes 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 financial assistance is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Hardship Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2007/08 6,995 - - - -
Hardship Assistance: Implementation of Temporary Additional Support 2005/06 30 (2,597) (2,597) (2,597) (2,597)
Temporary Additional Support: Measures to Prevent Unintended Disadvantage 2005/06 204 228 243 243 243
Temporary Additional Support: Ministerial Welfare Programme for Short-Term Residential Treatment Programmes 2005/06 (358) (382) (409) (409) (409)
Income Support for Live Organ Donors 2004/05 230 230 230 230 230
Working for Families-Hardship 2004/05 (91,177) (91,177) (91,177) (91,177) (91,177)
Residential Social Rehabilitation Programmes 2003/04 (920) (920) (920) (920) (920)

Independent Youth Benefit (M63)#

Scope of Appropriation

Provision of income support for people aged 16 or 17 years who are currently unemployed but actively seeking work, training for work, at school, or sick, injured or disabled, where it is inappropriate for them to obtain financial support from their parents. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses

Expenses - Independent Youth Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 13,325 13,239 13,557 13,856 14,133 14,490

Reasons for Change in Appropriation

The increase between 2007/08 and 2008/09 mainly reflects cost of living adjustments. The number of recipients is expected to decrease slowly over the forecast horizon with the accumulated cost of living adjustments accounting for increases to expenditure.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Independent Youth Benefit (M63) - Social Development
Reference Conditions
Independent Youth Benefit is paid under sections 60F to 60GAC of the Social Security Act 1964. Independent Youth Benefit is for 16 to 17 year olds who are looking for work, training for work, in school or cannot work due to sickness, injury, disability or pregnancy, and it is inappropriate for them to obtain financial support from their parents. Those attending secondary school can receive this Benefit until the end of the year in which they turn 18 years old. The net weekly rate is currently $153.46 per week. This appropriation is inclusive of tax and is after deductions for debt establishments.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Independent Youth Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2007/08 (133) (136) (137) (137) (137)
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 36 36 36 36 36
Working for Families-Housing 2004/05 32 32 32 32 32

Invalid's Benefit (M63)#

Scope of Appropriation

Provision of means-tested income support for people who are totally blind, or permanently and severely restricted in their capacity for work due to sickness, injury or disability. Paid in accordance with the criteria set out in the Social Security Act 1964.

Expenses

Expenses - Invalid's Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,216,701 1,214,440 1,314,903 1,378,089 1,436,631 1,496,083

Reasons for Change in Appropriation

Invalid's benefit recipients are influenced by demographic trends and, in the short term, by the changes in administration under Working New Zealand. Ongoing growth in expenditure is dominated by accumulated cost of living adjustments, accounting for over 70% of growth between 2008/09 and 2011/12.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Invalid's Benefit (M63) - Social Development
Reference Conditions
Invalid's Benefit is paid under sections 39F to 44A of the Social Security Act 1964. The Invalid's Benefit is paid to people who are medically assessed as having a permanent and severe disability or illness (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. Invalid's Benefit is paid at a higher rate than other benefits, ranging from a net rate of $186.28 per week for a single person aged 16 to 17 years to $383.66 per week in total for a married, civil union or defacto couple (with or without children). A sole parent will receive $302.40 net per week. This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries. Totally blind people in employment receive an additional subsidy of 25% of their average earnings if they do not exceed $301.83 a week or $340.19 a week for a single person. This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Invalid's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 13,097 13,221 13,496 13,762 13,762
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 26 26 26 26 26
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (67) (67) (67) (67) (67)
Legal Recognition of Relationships 2004/05 (1,065) (1,065) (1,065) (1,065) (1,065)
Working for Families-Family Income Assistance 2004/05 (2,673) (2,673) (2,673) (2,673) (2,673)
Working for Families-Housing 2004/05 280 280 280 280 280
Jobs Jolt Initiatives 2003/04 9,348 9,348 9,348 9,348 9,348

Merit Scholarships (M63)#

Scope of Appropriation

Provision of bonded scholarships that reward New Zealand's most academically capable students by providing financial support.

Expenses

Expenses - Merit Scholarships (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,500 7,500 -

Reasons for Change in Appropriation

This appropriation forms part of Study Scholarships and Awards from 1 July 2008.

New Zealand Superannuation (M63)#

Scope of Appropriation

Provision of 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

Expenses - New Zealand Superannuation (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 7,360,454 7,347,474 7,739,321 8,199,550 8,690,753 9,346,582

Reasons for Change in Appropriation

In both the short term and the longer term, growth in New Zealand Superannuation expenditure is about 40% due to rising number of eligible people aged 65 and over and about 60% due to accumulated indexation adjustments (including wage floor impacts).

Conditions on Use of Appropriation

Conditions on Use of Appropriation - New Zealand Superannuation (M63) - Social Development
Reference Conditions
New Zealand Superannuation is paid under the New Zealand Superannuation and Retirement Income Act 2001. Living Alone Payment is paid in accordance with the criteria set out in the New Zealand Superannuation and Retirement Income Act 2001 and in the Ministerial Direction - Living Alone Payments pursuant to section 5 of the Social Security Act 1964. New Zealand Superannuation provides income for people who have reached the qualifying age of 65 and fulfil the residency requirements. New Zealand Superannuation is paid at a net rate of $263.88 per week for a single person not granted a Living Alone Payment and on the standard (M) taxation rate, $285.87 per week for a single person granted a Living Alone Payment and $439.80 per week for a married, civil union or de facto couple where each separately qualifies. The Living Alone Payment is an additional rate of New Zealand Superannuation which recognises the extra costs for clients maintaining a household on their own. 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. This appropriation is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - New Zealand Superannuation (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 - 297 1,245 1,303 1,349
New Zealand Superannuation and Veteran's Pension: Extension of Payment Overseas to Recognised Aid Agency Volunteers 2006/07 336 354 354 354 354
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 93,791 90,098 56,667 4,157 4,157
Single Rates of New Zealand Superannuation for Some Married People 2006/07 7,939 8,341 8,341 8,341 8,341
Removal of Sharing Expenses Rule for Eligibility to the Living Alone Payment 2005/06 176 186 186 186 186
Legal Recognition of Relationships 2004/05 (1,037) (1,037) (1,037) (1,037) (1,037)
Working for Families-Housing 2004/05 20 20 20 20 20

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

Scope of Appropriation

Provision of income support for people charged with the responsibility for the care of a child whose parents are dead or cannot be located, or suffer a serious long-term disablement which renders them unable to care for the child, 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. It also provides for payments to former foster parents receiving Orphan's Benefit or Unsupported Child's Benefit for a child previously in the care of Child, Youth and Family in accordance with criteria set out in delegated legislation under the Act.

Expenses

Expenses - Orphan's/Unsupported Child's Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 80,616 80,298 87,566 100,072 105,090 110,758

Reasons for Change in Appropriation

The effects of indexation, rising number of children for whom this is payable and an increase in rates to match the Foster Care Allowance (Board Payment) from April 2009 each contribute to the 2007/08 to 2008/09 increment. In the outyears ongoing indexation is the largest driver of expenditure. About 8,300 recipients, or 9% more than current and representing about 11,500 children, are expected to be in receipt of this payment during 2011/12.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Orphan's/Unsupported Child's Benefit (M63) - Social Development
Reference Conditions
The Orphan's and Unsupported Child's Benefits are paid under sections 28, 29A and 31 of the Social Security Act 1964. Orphan's Benefit and Unsupported Child's Benefit is paid to a caregiver of a child whose parent cannot support them.  The weekly rates of payment range from $121.50 for a child under 5 years old to $157.92 for a child aged 14 years old and over. Both Benefits are not income tested on the caregiver's income or assets but are on the child's income.  Both Benefits are non-taxable payments.
The Care Supplement is paid under the Care Supplement Programme pursuant to section 124(1)(d) of the Social Security Act 1964. Care Supplement payments are payable under this appropriation. It is payable to former foster parents under the Children Young Persons and Their Families Act 1989 who continue to care for a child who has been discharged from foster care and for whom an Orphan's or Unsupported Child's Benefit is paid. Care Supplement payments reflect the difference between Orphan's or Unsupported Child's Benefit payments and Foster Care Allowance (Board Payments). Payments range from $6.49 (under 5 year olds) to $21.27 (14 years old and over) per week. The Supplement is a non-taxable payment.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Orphan's/Unsupported Child's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Alignment of UCB/OB weekly rates with the FCA weekly board rates 2008/09 - 1,781 7,314 7,580 7,898
Increasing Financial Support for Caregivers Receiving Unsupported Child's Benefit/Orphan's Benefit 2006/07 6,505 6,851 7,157 7,157 7,157
Working for Families-Family Income Assistance 2004/05 7,516 7,516 7,516 7,516 7,516

Scholarship and NQF/NCEA Awards (M63)#

Scope of Appropriation

Provision of awards in recognition of achievement in New Zealand Scholarship and the National Qualifications Framework/National Certificate of Education Achievement Level 3.

Expenses

Expenses - Scholarship and NQF/NCEA Awards (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,639 4,639 -

Reasons for Change in Appropriation

This appropriation forms part of Study Scholarships and Awards from 1 July 2008.

Sickness Benefit (M63)#

Scope of Appropriation

Provision of means-tested income support for people who are not in full-time employment and are limited in their capacity for work, or who are in employment but working at a reduced level, because of sickness, injury, disability or pregnancy. Paid in accordance with the criteria set out in the Social Security Act 1964.

Expenses

Expenses - Sickness Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 581,357 579,668 567,655 568,650 569,130 574,289

Reasons for Change in Appropriation

The number of Sickness Benefit recipients is expected to fall by over 5% (2,600) between 2007/08 and 2008/09. These numbers have been impacted by changes to administration under Working New Zealand and the active case management of this client group.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Sickness Benefit (M63) - Social Development
Reference Conditions
The Sickness Benefit is paid under sections 54 to 54F of the Social Security Act 1964. It includes Sickness Benefit 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. Sickness Benefit provides assistance to those who are willing to undertake work but are limited in their capacity to work due to sickness, injury or disability. Sickness Benefit is also available from the 27th week of pregnancy (earlier if there are complications). It is not a work-tested benefit except for the spouse or partner of clients in receipt of Sickness Benefit. Net weekly rates of payment range from $122.77 for an 18 or 19 year-old living at home to $306.92 for a married, civil union or defacto couple (with and without children). The sole parent rate is the same as for the Domestic Purposes Benefit. This Benefit is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Sickness Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 (426) (485) (549) (549) (549)
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 239 239 239 239 239
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (41) (41) (41) (41) (41)
Legal Recognition of Relationships 2004/05 (1,092) (1,092) (1,092) (1,092) (1,092)
Working for Families-Family Income Assistance 2004/05 (6,839) (6,839) (6,839) (6,839) (6,839)
Working for Families-Housing 2004/05 617 617 617 617 617
Jobs Jolt Initiatives 2003/04 (14,981) (14,981) (14,981) (14,981) (14,981)

Special Annuities (M63)#

Scope of Appropriation

Provision to pay annuities authorised by Cabinet to recognise a special contribution by the recipient to New Zealand society.

Expenses

Expenses - Special Annuities (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 51 41 43

Reasons for Change in Appropriation

The reduction between 2007/08 and 2008/09 reflects the increase to the 2007/08 appropriation to reduce the likelihood of an overspend. Outyear changes reflect cost of living adjustments.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Special Annuities (M63) - Social Development
Reference Conditions
Special Annuities payments are made under the authority of Cabinet. Special Annuities are awards made by government and are not covered by legislation. Annual government approval is needed for their continued payment.  Special Annuities are non-taxable.

Special Benefit (M63)#

Scope of Appropriation

Provision of means-tested discretionary assistance to clients whose particular circumstances are causing ongoing hardship, in accordance with criteria set out in section 61G of the Social Security Act 1964 and in the Special Benefit Ministerial Direction made pursuant to section 5 of the Social Security Act 1964. This non-taxable payment is not intended as a long-term solution to a client's shortfall. It is paid to help meet essential costs while the client makes efforts to reduce their living costs or increase their income.

Expenses

Expenses - Special Benefit (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 71,055 70,738 -

Reasons for Change in Appropriation

This appropriation forms part of Hardship Assistance from 1 July 2008.

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, and civil defence payments paid in accordance with criteria set out in the Social Security Act 1964, and delegated legislation under that Act; and Civilian Amputees Assistance, paid in accordance with criteria set out in the Disabled Persons Community Welfare Act 1975.

Expenses

Expenses - Special Circumstance Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 14,306 14,103 13,672 13,240 12,888 12,644
Civilian Amputee Assistance 443 443 428 432 437 441
Clothing Allowance 4,493 4,493 4,661 4,873 5,017 5,149
Community Costs 297 297 346 378 416 451
Relocation Assistance 209 209 215 222 228 235
Home Help 1,892 1,892 1,906 1,830 1,820 1,810
Social Rehabilitation Assistance 1,630 1,630 1,668 1,682 1,720 1,804
Telephone Costs Payment 5,139 5,139 4,448 3,823 3,250 2,754

Reasons for Change in Appropriation

Prior to 1 July 2008 this item was called Ministerial Welfare Programmes Providing Specialist Types of Assistance.

The expenditure on Telephone Costs Payments will reduce in line with the continuing reduction in the number of grand parented recipients. Reducing the pace of decline is the growing number of residential care subsidy recipients that receive a clothing allowance and the indexation of these payments. By April 2012 an estimated 19,600 people will be paid clothing allowance, up about 1,300 from today.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Special Circumstance Assistance (M63) - Social Development
Reference Conditions
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.
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 and accommodation 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 is 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 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 Veteran's Pension and cannot receive Accommodation Supplement, Disability Allowance, Special Benefit or Temporary Additional Support at the same time. This assistance is non-taxable and is income tested.
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.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Special Circumstance Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increased Rates of Pay for Home Helpers 2005/06 205 241 241 241 241
Progressive Removal of Asset Testing for older People in Long-Term Residential Care 2005/06 1,300 1,300 1,300 1,300 1,300
Temporary Additional Support: Ministerial Welfare Programme for Short-Term Residential Treatment Programmes 2005/06 597 636 682 682 682
Residential Social Rehabilitation Programmes 2003/04 1,383 1,383 1,383 1,383 1,383

Special Needs Grants (M63)#

Scope of Appropriation

Provision of means-tested mainly non-recoverable assistance for people who have an immediate need because they face emergency or essential costs, or in specific circumstances. Paid in accordance with criteria set out in the Special Needs Grants Programme made pursuant to section 124(1)(d) of the Social Security Act 1964. Means tested Funeral Grants are payable under sections 61D to 61DE of the Social Security Act 1964.

Expenses

Expenses - Special Needs Grants (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 59,568 58,211 -

Reasons for Change in Appropriation

This appropriation forms part of Hardship Assistance from 1 July 2008.

Special Transfer Allowance (M63)#

Scope of Appropriation

Provision of assistance with accommodation costs to recipients of the Special Transfer Allowance prior to November 2000 and to former Tenure Protection Allowance recipients who ceased to be eligible because HNZC sold their house to a private landlord. Paid in accordance with the criteria set out in the Special Transfer Allowance Programme 2000 pursuant to section 124(1)(d) of the Social Security Act 1964.

Expenses

Expenses - Special Transfer Allowance (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 136 126 -

Reasons for Change in Appropriation

This appropriation forms part of Accommodation Assistance from 1 July 2008.

Step Up Scholarships (M63)#

Scope of Appropriation

Provision of financial support to assist young students from low income backgrounds to participate in high cost tertiary education courses.

Expenses

Expenses - Step Up Scholarships (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,064 8,064 -

Reasons for Change in Appropriation

This appropriation forms part of Study Scholarships and Awards from 1 July 2008.

Student Allowances (M63)#

Scope of Appropriation

This appropriation is limited to means-tested allowances for students on an approved study programme in accordance with the criteria established by the Student Allowance Regulations 1998; and payment of Student Allowance Transfer Grants to students with dependents in accordance with the criteria established by delegated legislation issued under the Social Security Act 1964.

Expenses

Expenses - Student Allowances (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 387,153 384,118 411,378 443,040 458,676 472,481
Student Allowances 383,837 383,837 411,131 442,786 458,414 472,211
Student Allowance Transfer Grant Programme 281 281 247 254 262 270

Reasons for Change in Appropriation

Nearly half of the increase between 2007/08 and 2008/09 is caused by a suite of policy changes. The most significant impacts arise from the reduction by one year in the parental income testing age and the 10% increase in the parental income testing threshold. Most of the remaining increase reflects cost of living adjustments over the two years. In the outyears the accumulated effect of cost of living adjustments account for about two-thirds of the change, with the policy impacts and underlying slow growth in uptake accounting for the remainder.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Student Allowances (M63) - Social Development
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 Allowances purposes by the Tertiary Education Commission; 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.
Students can earn up to $180 gross per week before their Student Allowance rates are affected. Any income over $180 results in the gross Student Allowance being abated dollar for dollar.
The rate of Student Allowances paid to students under 25 years of age without children is affected by their parents' income over a threshold.
The range of Student Allowance rates that students are paid vary according to living circumstances: allowances payable to students aged under 25 years without supported children are targeted on the taxable income of both parents and include an [Invalid character here] at home[Invalid character here] or [Invalid character here] away from home[Invalid character here] rate depending on the student's living circumstances; Allowances payable to single students aged 25 years or over are not targeted on parental income but do include an [Invalid character here] at home[Invalid character here] or [Invalid character here] away from home[Invalid character here] 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 dependent (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.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Student Allowances (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increasing the student allowance parental income threshold by 10% 2008/09 - 3,785 8,207 8,464 8,727
Lowering the age limit for student allowance parental income testing by one year 2008/09 - 9,153 19,638 20,833 22,041
Student Achievement Component: Access in priority areas 2008/09 - 1,738 3,444 2,073 (921)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 136 262 233 231 231
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 2,351 4,921 5,121 5,283 5,283
Aligning Student Support with Funded Qualifications 2006/07 (4,350) (4,908) (5,114) (5,114) (5,114)
Increasing the Student Allowance Parental Income Thresholds 2006/07 4,169 4,341 4,473 4,473 4,473
Student Allowances for Doctoral Students 2006/07 1,301 1,334 1,363 1,363 1,363
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 955 968 968 968 968
Extend Data Matches to Students 2005/06 (3,168) - - - -
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 3,435 3,399 3,399 3,399 3,399
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 1,170 1,157 1,157 1,157 1,157
Extending the Student Allowance Parental Income Test to Married Students under 25 with no Dependents 2004/05 (5,158) (5,158) (5,158) (5,158) (5,158)
Increasing Student Allowance Parental Income Thresholds 2004/05 65,555 65,555 65,555 65,555 65,555
Removing the Work History Criterion for the Independent Circumstances Grant 2004/05 (33,459) (33,459) (33,459) (33,459) (33,459)
Requiring 'Previously Married' Students to Demonstrate Exceptional Circumstances when Applying for the Independent Circumstances Grant 2004/05 (29) (29) (29) (29) (29)
Working for Families-Family Income Assistance 2004/05 (3,796) (3,796) (3,796) (3,796) (3,796)

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

Expenses - Study Scholarships and Awards (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 37,819 37,819 42,790 48,077 52,288 54,288
Merit Scholarships 7,500 7,500 11,100 13,200 14,700 15,300
Scholarship and NQF/NCEA Awards 4,639 4,639 4,639 4,639 4,639 4,639
Step Up Scholarships 8,064 8,064 9,667 11,154 12,165 12,165
TeachNZ Scholarships 17,616 17,616 17,384 19,084 20,784 22,184

Reasons for Change in Appropriation

From 1 July 2008 the four scholarships listed above are combined into a single new appropriation. This is a capped item with changes representing policy decisions. Merit Scholarships contribute the most to the change and have been expanded from January 2009 to allow 50% more scholarships to be issued. These are phased in over the typical three year scholarship cycle.

TeachNZ scholarships increase due to responsibility for the scholarship allowance payments being passed to MSD from Education, in addition to the fees previously payable under vote Social Development. In addition the scholarship has been expanded with greater amounts payable in return for a bonded period. This is being phased in over several years as the old scholarships run out.

Step Up scholarships were redesigned and expanded by 50% from January 2008, with a phase in of the new scholarships.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Study Scholarships and Awards (M63) - Social Development
Reference Conditions
Merit Scholarships are paid under Cabinet decisions. Merit Scholarships recognise New Zealand's most academically capable students. The Scholarship provide a flat rate toward tuition fees for full time study, for each year up to four years, from the second year of a first bachelor degree. Following the completion of their qualification, Scholarship recipients are bonded to remain in New Zealand for a period equivalent to the period of the Scholarship paid. Students who breach the terms and conditions of their Scholarship may have all or part of their Scholarship payments recovered as a Student Loan under section 307AC of the Education Act 1989.
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.
Step Up Scholarships are paid under Cabinet decisions. Step Up Scholarships are for students from low income backgrounds who are studying approved full-time tertiary degree courses in the area of science, technology, human or animal health. The student must make a minimum contribution towards their fees each year, with the balance being paid by the scholarship. Following the completion of their qualification, scholarship recipients are bonded to remain in New Zealand for a period equivalent to the period of the scholarship paid. Students who breach the terms and conditions of their scholarship may have all or part of their scholarship payments recovered as a Student Loan under section 307AC of the Education Act 1989. This Scholarship is non-taxable.
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 of up to $10,000 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.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Study Scholarships and Awards (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Expansion of Bonded Merit Scholarship Scheme 2008/09 - 1,500 3,000 4,500 5,100
Expansion and Redesign of Step Up Scholarships 2007/08 1,434 2,037 4,524 5,535 5,535
Expanding Bonded Merit Scholarships 2006/07 3,000 4,500 5,100 5,100 5,100
Introduce Bonded Merit Scholarships 2005/06 3,750 4,800 4,800 4,800 5,100
New Zealand Scholarship 2005 and Beyond 2005/06 1,592 1,592 1,592 1,592 1,592
Focusing on Priorities for Teacher Supply 2004/05 13,607 13,607 13,607 13,607 13,607
Recognition of Achievement in New Zealand Scholarship and National Certificate of Education Achievement, Level 3: Amendments to Awards 2004/05 547 547 547 547 547
Step Up Scholarships 2004/05 6,630 6,630 6,630 6,630 6,630

TeachNZ Scholarships (M63)#

Scope of Appropriation

Provision of financial support for early childhood, Maori medium and some secondary subject teacher trainees.

Expenses

Expenses - TeachNZ Scholarships (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 17,616 17,616 -

Reasons for Change in Appropriation

This appropriation forms part of Study Scholarships and Awards from 1 July 2008.

Temporary Additional Support (M63)#

Scope of Appropriation

Provision of means tested temporary financial assistance of last resort to alleviate financial hardship for people whose essential costs cannot be met from their chargeable income and other sources, as set out in accordance with criteria in section 61 G and in accordance with any regulations made under section 132AB of the Social Security Act 1964 which comes into force on 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.

Expenses

Expenses - Temporary Additional Support (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 53,246 52,884 -

Reasons for Change in Appropriation

This appropriation forms part of Hardship Assistance from 1 July 2008.

Transition to Work (M63)#

Scope of Appropriation

Provision of payments to beneficiaries, low income earners, students and ex beneficiaries, who meet certain criteria, to assist in the transition from benefit to employment and the continuation of employment. These provisions are paid in accordance with the criteria set out in the Seasonal Work Assistance Programme and the Transition to Work Grant Programme pursuant to the Social Security Act 1964.

Expenses

Expenses - Transition to Work (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 16,287 16,037 16,894 17,416 17,913 18,485
New Employment Transition Grants 233 233 244 253 260 265
Employment Transition Programme 160 160 172 178 183 189
Seasonal Work Assistance 272 272 263 271 279 287
Transition to Work Grant 15,372 15,372 16,215 16,714 17,191 17,744

Reasons for Change in Appropriation

The Transition to Work Grant dominates this item. It results from the April 2007 merger and subsequent expansion of the previous pathways payment and work start grant. Growth in expenditure is due to increases in living costs and prices relating to job search or costs associated with entering employment.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Transition to Work (M63) - Social Development
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 Invalid's Benefit recipients who have completed an Employment Trial (this is when a person on Invalid's Benefit can work 15 hours or more in open employment for an agreed period of up to six months without losing eligibility to Invalid's Benefit) and who would otherwise experience a drop in income when they lose eligibility to Invalid's Benefit 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 worker 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.
Transition to Work Grant is paid under the Transition to Work Grant Programme pursuant to section 124(1)(d) of the Social Security Act 1964. The Transition to Work Grant provides flexible non-recoverable financial assistance to help clients meet the essential costs incurred when transitioning into employment. The Grant is available to beneficiaries, low-income earners returning to the workforce or transferring between jobs, and to students. In some cases payments covering up to two weeks of bridging finance to meet living expenses and temporary suspension of debt repayments are also available. The Grant is non-taxable.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Transition to Work (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 7,125 8,267 8,318 8,322 8,322
Working for Families-Family Income Assistance 2004/05 (108) (108) (108) (108) (108)

Transitional Supplement (M63)#

Scope of Appropriation

Provision of supplementary financial assistance to ensure that beneficiaries and non-beneficiaries who may be otherwise unintentionally financially disadvantaged by changes to legislation will be no worse off financially at the point of change. Paid in accordance with criteria set out in the Social Security (Transitional Protection Supplement) Regulations 2007 made under the Social Security Amendment Act 2007.

Expenses

Expenses - Transitional Supplement (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 12 2 -

Reasons for Change in Appropriation

Expected expenditure is very low in 2007/08 and zero in 2008/09.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Transitional Supplement (M63) - Social Development
Reference Conditions
Transitional Supplement is paid under the Social Security (Transitional Protection Supplement) Regulations 2007 pursuant to section 20 of the Social Security Amendment Act 2007. The Transitional Supplement provides financial assistance so that beneficiaries and non-beneficiaries who may be otherwise unintentionally financially disadvantaged by changes introduced as part of the Working for Families: Work Focused Support package will be no worse off. This supplementary non-taxable payment will cease on 1 July 2009 and incorporates and replaces the former Transitional Working for Families Supplement that ceases on 30 June 2008.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Transitional Supplement (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working for Families-Family Income Assistance 2004/05 500 - - - -

Unemployment Benefit and Emergency Benefit (M63)#

Scope of Appropriation

Provision of means-tested assistance for people who are not in full-time employment and are available for and seeking full time employment, or engaged in approved activities. Also the provision of assistance to people who are in hardship and unable to earn enough income for themselves (and any dependent family) and cannot receive another benefit. Both forms of assistance are paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Expenses

Expenses - Unemployment Benefit and Emergency Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 456,694 454,848 417,408 457,094 449,609 446,976

Reasons for Change in Appropriation

Prior to 1 July 2008 this item was called Unemployment Benefit. The reduction in expenditure between 2007/08 and 2008/09 results from a decrease in the number of recipients during the period.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Unemployment Benefit and Emergency Benefit (M63) - Social Development
Reference Conditions
Unemployment Benefit is paid under sections 88A to 123D of the Social Security Act 1964, and, for Unemployment Benefit 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. The Unemployment Benefit is available for people who are not in full-time employment but are looking for and available for work. It is a work-tested benefit. Net weekly rates paid range from $122.77 for an 18 or 19 year-old living at home to $306.92 for a married, civil union or de facto couple (with or without children). The sole parent rate is the same as for the Domestic Purposes Benefit.  This Benefit is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.
Emergency Benefit is paid under sections 61 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 cannot receive any other benefit. Emergency Benefit can also be paid instead of, or in substitution for, a statutory benefit the person is eligible to receive. Rates of payment can vary but cannot exceed the rate of the analogous income tested benefit that would be otherwise payable. This Benefit is inclusive of tax and is after deductions for debt establishments and overseas pension recoveries.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Unemployment Benefit and Emergency Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Increasing the Student Allowance Parental Income Threshold by 10% 2008/09 - 660 1,367 1,463 1,565
Lowering the age limit for Student Allowance Parental Income Testing by one year 2008/09 - 911 1,876 1,984 2,097
Student Achievement Component: Access in priority areas 2008/09 - 170 324 171 (152)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 5 10 10 10 10
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 270 552 510 530 530
Aligning Student Support with Funded Qualifications 2006/07 (684) (706) (724) (724) (724)
Increasing the Student Allowance Parental Income Thresholds 2006/07 486 506 520 520 520
Working New Zealand: Work-Focused Support: Support and Services 2006/07 (16,766) (17,180) (17,706) (17,979) (17,979)
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 542 549 549 549 549
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 529 534 534 534 534
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 55 58 58 58 58
Addressing Long-Term Unemployment 2004/05 (3,575) (3,575) (3,575) (3,575) (3,575)
Benefit Stand Down - changes to remove barriers to seasonal work 2004/05 1,044 1,044 1,044 1,044 1,044
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (120) (120) (120) (120) (120)
Extending the Student Allowance Parental Income Test to Married Students under 25 with no Dependents 2004/05 (175) (175) (175) (175) (175)
Increasing Student Allowance Parental Income Thresholds 2004/05 8,104 8,104 8,104 8,104 8,104
Legal Recognition of Relationships 2004/05 (3,582) (3,582) (3,582) (3,582) (3,582)
Removing the Work History Criterion for the Independent Circumstances Grant 2004/05 (2,412) (2,412) (2,412) (2,412) (2,412)
Requiring 'Previously Married' Students to Demonstrate Exceptional Circumstances when Applying for the Independent Circumstances Grant 2004/05 (2) (2) (2) (2) (2)
Working for Families - Family Income Assistance 2004/05 (15,597) (15,597) (15,597) (15,597) (15,597)
Working for Families - Housing 2004/05 2,158 2,158 2,158 2,158 2,158
Jobs Jolt Initiatives 2003/04 (15,876) (15,876) (15,876) (15,876) (15,876)

Widow's Benefit (M63)#

Scope of Appropriation

Provision of means-tested income support for women whose partners have died and who do not yet qualify for New Zealand Superannuation, but meet residency and other requirements. Paid in accordance with criteria set out in the Social Security Act 1964.

Expenses

Expenses - Widow's Benefit (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 72,800 72,586 69,294 65,547 61,793 57,963

Reasons for Change in Appropriation

The number of recipients is steadily falling for this benefit. There are about 6,200 in 2007/08 and are expected to be 4,400 in 2011/12. The resulting lower expected expenditure is expected to be offset by about one-third as a result of accumulated cost of living adjustments.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Widow's Benefit (M63) - Social Development
Reference Conditions
Widow's Benefit is paid under sections 21 and 24 of the Social Security Act 1964. Widow's Benefit provides support to women whose spouses or partners have died. If the women is not looking after a child at the time of making an application then certain other criteria such as length of unions(s) and age may apply. Net weekly rates paid range from $191.83 for a woman living alone to $263.78 for a sole parent. 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.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Widow's Benefit (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Working New Zealand: Work-Focused Support: Support and Services 2006/07 42 43 44 44 44
Enhanced Work Focus for Domestic Purposes Benefit Clients 2005/06 (1,121) (1,224) (1,224) (1,224) (1,224)
Encourage Sole Parent Beneficiaries to Establish Paternity and Apply for Child Support 2004/05 (11) (11) (11) (11) (11)
Working for Families-Family Income Assistance 2004/05 (1,523) (1,523) (1,523) (1,523) (1,523)
Working for Families-Housing 2004/05 22 22 22 22 22

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 5.2 NonDepartmental Other Expenses - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Children and Young People Debt Write-downs, Contingency and Innovation Fund, Employment Assistance, and Out of School Care Programme.
Outcome - Working Age People Community Labour Market Development Assistance, Employment Assistance, and Out of School Care Programme.
Outcome - Families and Whanau Contingency and Innovation Fund.
Outcome - Communities, Hapu and Iwi Community Labour Market Development Assistance and Out of School Care Programme.

Community Labour Market Development Assistance (M63)

Scope of Appropriation

Assistance to communities and groups to develop initiatives leading to sustainable opportunities for employment that lead to self sufficiency and contribute to the local economy.

Expenses

Expenses - Community Labour Market Development Assistance (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 9,333 9,333 9,333

Expected Results

Expected Results - Community Labour Market Development Assistance (M63) - Social Development
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of disadvantaged communities/groups assisted to recognise and develop their own labour market initiatives will be between: New measure in 2008/09 New measure in 2008/09 60 - 70

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Community Labour Market Development Assistance (M63) - Social Development
Reference Conditions
Cabinet Guidelines for Community Labour Market Development Assistance The Cabinet Guidelines for Community Labour Market Development Assistance set out new criteria for the definition, aim, expected outcomes and target population for Community Labour Market Development Assistance.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Community Labour Market Development Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Repositioning of Community Employment Activities 2004/05 10,500 10,500 10,500 10,500 10,500

Contingency and Innovations Fund (M63)#

Scope of Appropriation

Contributing to the funding of social or welfare providers experiencing unforeseen financial difficulty or the purchase of innovative proposals to meet outcomes sought by the Minister.

Expenses

Expenses - Contingency and Innovations Fund (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 365

Reasons for Change in Appropriation

This appropriation was previously in Vote Child, Youth and Family Services which is being merged with Vote Social Development on 1 July 2008.

Expected Results

This funding is used at the discretion of the Minister for Social Development and Employment and there are no expected results.

Debt Write-downs (M63)#

Scope of Appropriation

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

Expenses - Debt Writedowns (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 631,372 631,372 670,098

Reasons for Change in Appropriation

The change in this appropriation is largely due to an increase in the Student Loan borrowings in 2008/09.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Debt Writedowns (M63) - Social Development
Reference Conditions
New Zealand International Financial Reporting Standard 39. Financial Instruments: Recognition and Measurement.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Debt Writedowns (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Expansion of Bonded Merit Scholarship Scheme 2008/09 - (164) (328) (493) (558)
Increasing the Student Allowance Parental Income Threshold by 10% 2008/09 - (414) (899) (927) (956)
Increasing the Student Loan Scheme Living cost component to $155 per week 2008/09 - 2,525 5,724 7,117 7,855
Lowering the age limit for Student Allowance Parental Income Testing by one year 2008/09 - (1,002) (2,150) (2,281) (2,413)
Student Achievement Component: Access in priority areas 2008/09 - 2,766 3,646 2,846 (1,840)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 (15) (29) (26) (26) (26)
Expansion and Redesign of Step Up Scholarships 2007/08 (535) (760) (1,687) (2,064) (2,064)
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 (263) (551) (573) (591) (591)
Updating the Student Component Funding Rate for 2008 for Tertiary Education Institutions 2007/08 (1,174) (2,348) (2,348) (2,348) (2,348)
Aligning Student Support with Funded Qualifications 2006/07 (7,254) (7,831) (7,940) (7,940) (7,940)
Expanding bonded Merit Scholarships 2006/07 (640) (1,018) (1,240) (1,240) (1,240)
Increasing the Student Allowance Parental Income Thresholds 2006/07 (374) (389) (401) (401) (401)
Student Allowances for Doctoral Students 2006/07 (117) (120) (122) (122) (122)
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 (29) (30) (30) (30) (30)
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 (106) (105) (105) (105) (105)
Increase the Trainee Medical Intern Grant 2005/06 (113) (128) (128) (128) (128)
Interest Free Student Loans 2005/06 457,393 483,363 504,972 504,972 504,972
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 (30) (30) (30) (30) (30)
Introduce Bonded Merit Scholarships 2005/06 (325) (416) (416) (416) (416)

Employment Assistance (M63)#

Scope of Appropriation

Provision of assistance to help address barriers faced by job seekers so they can become work ready, move into employment and stay in employment for longer periods of time. This employment assistance is governed by the Cabinet and Ministerial Guidelines for Employment and Training Assistance.

Expenses

Expenses - Employment Assistance (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 85,468 85,468 74,927

Reasons for Change in Appropriation

The decrease in this appropriation is largely due to funding the Pathway to Partnership, Skills Investment Subsidy and Expanding the Community Organisation Grants Scheme initiatives in Budget 2008.

Expected Results

Expected Results - Employment Assistance (M63) - Social Development
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Employment Assistance is governed by the Cabinet and Ministerial Guidelines for Employment and Training Assistance. New measure in 2008/09 New measure in 2008/09 Standard met

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Employment Assistance (M63) - Social Development
Reference Conditions
Ministerial Guidelines for use of Employment Assistance. New Ministerial Guidelines took effect from 30 April 2007. The eight clusters are:
  • Development Services
  • Work Experience
  • Community Activities
  • Employment Partnerships
  • Up Skilling Assistance
  • Self Employment Assistance
  • Extra Employment Support for People with ill Health or Disability
  • Innovation and Market Responsiveness.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Employment Assistance (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Expanding the Community Organisation Grants Scheme 2008/09 - (500) (373) (500) (500)
Skills Investment Subsidy Expenditure Reduction 2008/09 - (1,781) (7,314) (7,580) (7,898)
Supporting a Sustainable NGO Social Services Sector: Net Operating Impact (Pathway to Partnership) 2008/09 - (5,000) (9,500) (10,000) (10,000)
Working New Zealand: Work-Focused Support: Support and Services 2006/07 (6,000) (6,000) (6,000) (6,000) (6,000)
Addressing Long-Term Unemployment 2005/06 6,500 6,500 6,500 6,500 6,500
New Services for Sickness and Invalid's Benefit Recipients 2005/06 1,000 1,000 1,000 1,000 1,000

Out of School Care Programmes (M63)#

Scope of Appropriation

Provision of assistance to CYF approved OSCAR programmes to assist with the establishment and/or operating costs of OSCAR programmes.

Expenses

Expenses - Out of School Care Programmes (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,002 15,002 18,677

Reasons for Change in Appropriation

The increase in this appropriation between 2007/08 and 2008/09 is largely due to additional funding from the Out of School Services Five-Year Action Plan: Revised Recommendation initiative in Budget 2007.

Expected Results

Expected Results - Out of School Care Programmes (M63) - Social Development
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of development grants paid to providers will be: New measure in 2008/09 New measure in 2008/09 80 - 100
The number of assistance grants paid to providers will be: New measure in 2008/09 New measure in 2008/09 1,100 - 1,300

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Out of School Care Programmes (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Out of School Services Five-Year Action Plan: Revised Recommendations 2007/08 1,009 3,240 3,311 3,250 3,050
Enhancing Parents' Work Choices 2005/06 6,656 8,149 8,149 8,149 8,149

Suspensory Loan Abatement (M63)#

Scope of Appropriation

Provision for the abatement of suspensory loans.

Expenses

Expenses - Suspensory Loan Abatement (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 10 10 -

Reasons for Change in Appropriation

This appropriation forms part of debt Write-downs from 1 July 2008.

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Social Development
Appropriation Reporting Mechanism
Community Labour Market Development Assistance Not required
Contingency and Innovations Fund Not required
Debt Write-downs Not required
Employment Assistance Not required
Out of School Care Programmes Not required

The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental other expenses appropriation.

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure

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

Capital Expenditure - Ministry of Social Development Capital Expenditure PLA (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 38,208 38,208 74,251
Intangibles 30,708 30,708 33,042
Other 9,732 9,732 11,840
Total Appropriation 78,648 78,648 119,133
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 38,208 38,208 74,251
Intangibles 30,708 30,708 33,042
Other 9,732 9,732 11,840
Total Appropriation 78,648 78,648 119,133

Reasons for Change in Appropriation

The Youth Justice Central redevelopment project is the reason for the increase in planned capital expenditure in 2008/09.

Expected Results

Expected Results - Ministry of Social Development Capital Expenditure PLA (M63) - Social Development
  2007/08 2008/09
  Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Youth Justice Lower North Redevelopment 1,500 1,500 11,487
Youth Justice Central Build 4,000 4,000 29,890
Family Homes - PPE 6,967 6,967 5,893
Software development 30,708 30,708 33,042
Motor Vehicles 9,732 9,732 11,840
Photocopiers & Office equipment 1,450 1,450 1,450
Family Homes - furniture 400 400 400
Family homes - IT equipment 160 160 160
IT equipment - other 7,189 7,189 8,340
Leasehold Improvements 16,542 16,542 16,631
Total Appropriation 78,648 78,648 119,133

The table above reflects Vote Social Development's planned capital expenditure in 2009.

Part 6.2 - Non-Departmental Capital Expenditure#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 6.2 NonDepartmental Capital Expenditure - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Children and Young People Student Loans
Outcome - Working Age People Recoverable Assistance and Student Loans
Outcome - Families and Whanau Student Loans

Community Services Card Reimbursements (M63)

Scope of Appropriation

Provision to reimburse low-income earners who are eligible for, but are yet to receive, a Community Services Card in accordance with the criteria set out in regulation 5(1) of the Health Entitlement Cards Regulations 1993.

Capital Expenditure

Capital Expenditure - Community Services Card Reimbursements (M63) - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 104 94 -

Reasons for Change in Appropriation

From 1 July 2008 this appropriation no longer exists. The cash flow associated with this item is accounted for via Hardship Assistance.

Recoverable Assistance (M63)#

Scope of Appropriation

Facility for low-income earners and beneficiaries to access means-tested assistance to enable them to meet essential and immediate needs, or costs in specific circumstances. Criteria are set out in the Welfare Programme for Recoverable Assistance for Non-Beneficiaries,Ministerial Direction for Advance Payment of Benefits and recoverable Special Needs Grants in relevant parts of Welfare Programme for Special Needs Grants pursuant to the Social Security Act 1964.

Capital Expenditure

Capital Expenditure - Recoverable Assistance (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 118,287 117,214 122,013 127,173 130,571 131,635
Recoverable Advance Payment of Benefit 101,405 101,405 104,781 109,456 112,702 113,901
Recoverable Special Needs Grant 5,070 5,070 5,309 5,462 5,485 5,466
Recoverable Assistance Programme 10,739 10,739 11,923 12,255 12,384 12,268

Reasons for Change in Appropriation

General price increases combined with growth in beneficiary numbers combine to put upward pressure on this third tier assistance. The benefit advances component accounts for most of the expenditure and of the growth.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Recoverable Assistance (M63) - Social Development
Reference Conditions
Payments are made under the Welfare Programme for Recoverable Assistance for Non-Beneficiaries, and relevant parts of Welfare Programme for Special Needs Grants pursuant to the Social Security Act 1964, both pursuant to section 124(1)9d) of the Social Security Act 1964, and the Ministerial Direction for Advance Payment of Benefits pursuant to section 5 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 Grant
  • Recoverable Assistance Programme.

Student Loans (M63)#

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

Capital Expenditure - Student Loans (M63) - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 1,216,238 1,200,661 1,296,382 1,388,740 1,472,701 1,557,752

Reasons for Change in Appropriation

Increases in the number of students drawing down loans drive this item, accounting for about 60% of growth between 2007/08 and 2011/12. Most of the remainder is caused by ongoing increases in costs for which loans are required - mainly course fees.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Student Loans (M63) - Social Development
Reference Conditions
Student Loans Scheme Act 1992. The Student Loan Scheme Act 1992 provides for the collection of Student Loan repayment and Bonded Scholarships.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Student Loans (M63) - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Expansion of Bonded Merit Scholarship Scheme 2008/09 - (405) (810) (1,215) (1,377)
Increasing the Student Allowance Parental Income Threshold by 10% 2008/09 - (1,022) (2,216) (2,285) (2,356)
Increasing the Student Loan Scheme Living cost component to $155 per week 2008/09 - 6,226 14,115 17,550 19,370
Lowering the age limit for Student Allowance Parental Income Testing by one year 2008/09 - (2,471) (5,302) (5,625) (5,951)
Student Achievement Component: Access in priority areas 2008/09 - 6,821 8,991 7,019 (4,538)
Annual Adjustment of Student Allowance Personal Income Abatement Threshold 2007/08 (37) (71) (63) (62) (62)
Expansion and Redesign of Step Up Scholarships 2007/08 (1,291) (1,833) (4,072) (4,982) (4,982)
Increasing the Student Allowances Parental Income Threshold by 10% 2007/08 (635) (1,329) (1,383) (1,426) (1,426)
Updating the Student Component Funding Rate for 2008 for Tertiary Education Institutions 2007/08 (9,123) (18,246) (18,246) (18,246) (18,246)
Aligning Student Support with Funded Qualifications 2006/07 (21,848) (23,587) (23,915) (23,915) (23,915)
Expanding Bonded Merit Scholarships 2006/07 (1,927) (3,067) (3,735) (3,735) (3,735)
Increasing the Student Allowance Parental Income Thresholds 2006/07 (1,126) (1,172) (1,208) (1,208) (1,208)
Student Allowances for Doctoral Students 2006/07 (351) (360) (368) (368) (368)
Adjust the Student Allowances Personal Income Threshold and Abatement Regime 2005/06 (258) (261) (261) (261) (261)
Increase the Parental Income Threshold Disregard for Families with More than One Student 2005/06 (927) (918) (918) (918) (918)
Increase the Trainee Medical Intern Grant 2005/06 (989) (1,123) (1,123) (1,123) (1,123)
Interest Free Student Loans 2005/06 266,689 292,912 358,001 358,001 358,001
Introduce a Parental Income Threshold Disregard for Separated Parents 2005/06 (267) (264) (264) (264) (264)
Introduce Bonded Merit Scholarships 2005/06 (2,850) (3,648) (3,648) (3,648) (3,648)
Non-Asset Procedure Debtors-Access to Student Loans 2005/06 1,706 1,706 1,706 1,706 1,706
Access to Student Loans for Part-Time Part Year Students 2004/05 667 667 667 667 667
Extending the Student Allowance Parental Income Test to Married Students under 25 with no Dependents 2004/05 1,385 1,385 1,385 1,385 1,385
Increasing Student Allowance Parental Income Thresholds 2004/05 (19,999) (19,999) (19,999) (19,999) (19,999)
Removing the Work history Criterion for the Independent Circumstances Grant 2004/05 8,885 8,885 8,885 8,885 8,885
Requiring 'Previously Married' Students to Demonstrate Exceptional Circumstances when Applying for the Independent Circumstances Grant 2004/05 8 8 8 8 8

Reporting Mechanisms#

Reporting Mechanisms - Reporting Mechanisms - Social Development
Appropriation Reporting Mechanism
Recoverable Assistance Not required
Student Loans Annual report of the Student Loans Scheme

The above table indicates the mechanisms to be used for reporting actual performance for each non-departmental capital expenditure appropriation.

Performance Information for Appropriations Vote Senior Citizens#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Senior Citizens (M61)

ADMINISTERING DEPARTMENT: Ministry of Social Development

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

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister for Senior Citizens is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

  • $1.035 million purchasing the services of the Office for Senior Citizens from the Ministry of Social Development.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Senior Citizens
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme: Families - young and old
  • positive ageing
Older People: Senior Cititzens Services

Objectives of the Vote

Vote Senior Citizens contributes on behalf of the Government to the theme of Families - young and old.

Families - young and old focuses on providing all families with the support and choices they need to be secure and to be able to reach their full potential. Vote Senior Citizens supports older New Zealanders to age positively through the provision of policy advice concerning legislation to protect the rights and interests of older people, their wellbeing and related issues.

The impacts that the appropriations in Vote Senior Citizens are intended to have on different groups in society are reflected in the Ministry of Social Development's outcome for Older People.

The table above maps the Ministry of Social Development's outcomes and appropriations to the Government's theme of Families - young and old, and the Government's Outcomes and Objectives.

Summary of Financial Activity

Summary of Financial Activity - Senior Citizens
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 913 897 955 988 1,035 1,035 1,035 - 1,035 1,035 1,035 1,035
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

913 897 955 988 1,035 1,035 1,035 - 1,035 1,035 1,035 1,035

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue - - - - - - N/A N/A - - - -
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

- - - - - - N/A N/A - - - -

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental appropriations in Vote Senior Citizens, are discussed briefly below.

Figure 1 - Trends in total voted and actual expenses and capital expenditure

Trends in total voted and actual expenses and capital expenditure
Trends in total voted and actual expenses and capital expenditure
Source: Ministry of Social Development

Output Trends 2003/04 to 2008/09

Changes in expenditure in Vote Senior Citizens reflect the nature of policy advice on matters concerning the welfare of senior citizens and related issues in recent years.

In 2003/04, $160,000 was transferred from Vote Social Development to Vote Senior Citizens to enable the Office for Senior Citizens to increase its capability.

In 2004/05 additional funding of $75,000 was appropriated to extend the New Zealand Positive Ageing Strategy to the local government and community level.

In 2005/06 and 2006/07 one-off transfers occurred from Vote Social Development to Vote Senior Citizens of $151,000 and $107,000 to develop a code of practice for home equity release schemes.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Senior Citizens
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Older people Senior Citizens Services
Objective - Enable older people to lead full and secure lives. Older people have access to their full entitlements and are able to live independently.  

Senior Citizens Services (M61)

Scope of Appropriation

Provision of policy advice on matters concerning legislation to protect the rights and interests of older people, their wellbeing, and related issues. It also includes ministerial services and support for local community involvement in senior citizens' issues.

Expenses and Revenue

Expenses and Revenue - Senior Citizens Services (M61) - Senior Citizens
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,035 1,035 1,035
Revenue from the Crown 1,017 1,017 1,017
Revenue from Others 18 18 18

Output Performance Measures and Standards

Output Performance Measures and Standards - Senior Citizens Services (M61) - Senior Citizens
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Work Programme and Timeliness      
Policy advice will be delivered in accordance with a work programme agreed at the commencement of each six-month period with the Minister for Senior Citizens: Standard met Standard met Standard met
Quality      
Process      
An audit shows that the Ministry of Social Development's policy and research processes as outlined in the Quality Management System have been followed in at least: 90% of cases 90% of cases 90% of cases
Technical robustness      
An external independent review of the Ministry of Social Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria: Standard met Standard met Standard met
Timeliness      
Two six-monthly reports on the Work Programme will be provided within: 20 working days of the period end 20 working days of the period end 20 working days of the period end
The percentage of draft Ministerial replies to be completed within 20 working days of receipt, unless otherwise agreed, will be: 95% 95% 95%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Senior Citizens Services (M61) - Senior Citizens
Reference Conditions
Policy Advice - Standard Met Standard met means that we have received confirmation from the Minister for Senior Citizens via their Office that advice has been delivered in accordance with an agreed work programme.
Quality The work in relation to the audit, review or survey for these measures will be conducted during the year and reported on an annual basis.
Quality Management System The quality characteristics in the Ministry's Quality Management System are based on decision-making (defining, debating and deciding) and communication (capturing issues, convincing and confirming).
Technical robustness - Standard Met The standard for this measure is based on a continuum of: standard not met, standard met and standard exceeded.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Senior Citizens Services (M61) - Senior Citizens
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Extend the New Zealand Positive Ageing Strategy 2004/05 75 75 75 75 75

Performance Information for Appropriations Vote Veterans' Affairs - Social Development#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Veterans' Affairs (M75)

ADMINISTERING DEPARTMENT: Ministry of Social Development

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

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Veterans' Affairs is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

  • a total of just over $4.100 million to process and pay War Disablement Pensions and related allowances, veterans'-related pensions and concessions and payments under the Rehabilitation Loan Programme, and
  • a total of just over $336 million for benefits and other unrequited expenses (administered through the Ministry of Social Development).

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Veterans' Affairs - Social Development
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme: Families - young and old
  • strong families
Working Age People: Processing and Payment of Pensions, Medical Treatment, Veteran's Pension, and War Disablement Pensions.
Theme: Families - young and old
  • safe communities
Communities, Hapu and Iwi: Interest Concessions Land and Buildings.
Theme: Families - young and old
  • positive ageing
Older People: Interest Concessions Land and Buildings, Medical Treatment, Veteran's Pension, and War Disablement Pensions.

Objectives of the Vote

Vote Veterans' Affairs - Social Development contributes on behalf of the Government to the theme of Families - young and old through the processing and payment of the Veteran's Pension.

The impacts that the appropriations in Vote Veterans' Affairs - Social Development are intended to have on different groups in society are reflected in the Ministry of Social Development's outcomes:

  • Working Age People
  • Older People, and
  • Communities, Hapu and Iwi.

The table above maps the Ministry of Social Development's outcomes and appropriations to the Government's theme of Families - young and old, and the Government's Outcomes and Objectives. Most of the Ministry's appropriations map to more than one Government Outcome and Objective.

Summary of Financial Activity

Summary of Financial Activity - Veterans' Affairs - Social Development
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 3,633 3,849 3,548 3,683 4,155 4,155 4,155 - 4,155 4,155 4,155 4,155
Benefits and Other Unrequited Expenses 224,733 238,311 256,471 282,882 313,629 312,347 N/A 336,187 336,187 358,933 376,428 394,697
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

228,366 242,160 260,019 286,565 317,784 316,502 4,155 336,187 340,342 363,088 380,583 398,852

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue - - - - - - N/A N/A - - - -
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

- - - - - - N/A N/A - - - -

Budget Policy Initiatives

Budget Policy initiatives - Veterans' Affairs - Social Development
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas Veterans' Pension (M75)Non-Departmental Benefits and Other Unrequited Expenses - 6 25 26 27
Total Initiatives   - 6 25 26 27

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Veterans' Affairs, are discussed briefly below.

Figure 1 - Trends in total voted and actual expenses and capital expenditure

Trends in total voted and actual expenses and capital expenditure
Trends in total voted and actual expenses and capital expenditure
Source: Ministry of Social Development

The movements in departmental and non-departmental appropriations in Vote Veterans' Affairs - Social Development, which are detailed in the Summary of Financial Activity table above, are driven by movements in Non-Departmental Benefits and Other Unrequited Expenses.

Non-Departmental Benefits and Other Unrequited Expenses

Figure 2 - Trends in non-departmental benefits and other unrequited expenses

Benefits and Other Unrequited Expenses
Benefits and Other Unrequited Expenses
Source: Ministry of Social Development

Annual expenditure is forecast to increase to $394.697 million in 2011/12 from $224.733 million in 2003/04.

Veteran's Pension

Annual expenditure is forecast to increase to $216.083 million in 2011/12 from $109.686 million in 2003/04, a 97% increase over the nine-year period. Veteran's Pension recipients are forecast to increase to an average of 12,200 in 2011/12 from 8,200 in 2003/04.

Both the number of recipients and the average payment rate have grown over the past five years, contributing to the rise in expenditure. Both trends are expected to continue through to 2011/12. Accumulated cost of living adjustments to the standard Veteran's Pension rates of payment account for about 43% of the change in expenditure and drives the average rate trend. The number of people transferring to Veteran's Pension from New Zealand Superannuation has been the dominant driver of growth in recipients.

War Disablement Pensions

Annual expenditure is forecast to increase to $158.114 million in 2011/12 from $102.415 million in 2003/04, a 54% increase over the nine-year period. The number of War Disablement Pensions recipients is forecast to fall to an average of 19,400 in 2011/12 from 22,000 in 2003/04.

As the recipient population ages, the average level of disability is increasing, with an increasing number of recipients applying for recognition of multiple disabilities. The average payment rate rises with disability levels. Over the last five years this effect has more than offset the decrease in expenditure due to the falling number of recipients.

Medical Treatment

Annual expenditure is forecast to increase to $20.483 million in 2011/12 from $12.512 million in 2003/04, a 64% increase over the nine-year period. Approximately 88% of this increase is due to increased expenditure on Medical Treatment (excluding Australia). This reflects the increasing trends in disablement levels and multiple disabilities described above for War Disablement Pensions.

Interest Concessions Land and Buildings

Annual expenditure is forecast to decrease to $17,000 in 2011/12 from $120,000 in 2003/04, an 86% decrease over the nine-year period. There are both fewer outstanding loans and lower amounts of outstanding capital per loan.

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Veterans' Affairs - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome -Working Age People Processing and Payment of Pensions
Objective - Enable people to live independent lives. All New Zealanders have access to services and the ability to obtain skills that will allow them to live healthy and productive lives.  
Outcome -Older People Processing and Payment of Pensions
Objective - Enable older people to lead full and secure lives. Older people have access to their full entitlements and are able to live independently.  

Processing and Payment of Pensions (M75)

Scope of Appropriation

The purchase of processing and payment of War Disablement Pensions and related allowances, veterans'-related pensions and concessions and payments under the Rehabilitation Loan Programme.

Expenses and Revenue

Expenses and Revenue - Processing and Payment of Pensions (M75) - Veterans' Affairs - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 4,155 4,155 4,155
Revenue from the Crown 4,132 4,132 4,132
Revenue from Others 23 23 23

Output Performance Measures and Standards

Output Performance Measures and Standards - Processing and Payment of Pensions (M75) - Veterans' Affairs - Social Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quality      
The percentage of actions accurately processed by War Pensions Services will be no less than: 95% 95% 95%
Timeliness      
The percentage of new disability applications and reassessments of accepted disability that are administered and processed by the Ministry of Social Development (applications are acknowledged and the decisions of the claims panels relayed to veterans) will be completed within 14 working days will be no less than: 85% 90% 90%
The percentage of National Review Officer decisions that are administered and processed by the Ministry of Social Development (application acknowledged and decision referred to the claims panel) within 9 working days will be no less than: 90% 90% 90%
The percentage of ad hoc payments, overseas treatment schedules, rehabilitation schedules and reimbursements that will be made within 21 working days of receipt will be no less than: 97% 97% 97%
The percentage of calls answered within 20 seconds will be no less than: 90% 90% 90%
The percentage of new Veteran's Pension applications that are administered and processed by the Ministry of Social Development (application acknowledged and decision relayed to the veteran) within 7 days will be no less than: 90% 90% 90%
Veterans' satisfaction      
The results of the veterans' satisfaction survey will be reported biennially to the Minister, where veterans' satisfaction with the level of service and information provided will be no less than: 85% 85% 85%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Processing and Payment of Pensions (M75) - Veterans' Affairs - Social Development
Reference Conditions
War Pensions Act 1954 The War Pensions Act 1954 provides for the payment of Veteran's Pension and War Disablement Pensions.
War Pensions Regulations 1956 The War Pensions Regulations 1956 provide for the administration of Veteran's Pension and War Disablement Pensions. This includes specifying costs associated with medical treatment paid for disabilities found to be attributable to or aggravated by service with armed forces prior to 1 April 1974, or as a result of service on or after 1 April 1974 in connection with a recognised war or emergency.
Timeliness of disability applications and reassessments This performance measure relates to the processing of applications to the stage of referral to the War Pensions Claims Panel and then the processing of the Panel's decision. It does not include the time taken for medical assessments and decision-making by the Panel.
Veterans' satisfaction reported biennially The veterans' satisfaction survey will be conducted next in 2009/10. The last survey was conducted in 2007/08.

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 3.2 NonDepartmental Benefits and Other Unrequited Expenses - Veterans' Affairs - Social Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Working Age People Medical Treatment, Veteran's Pension, and War Disablement Pensions.
Outcome - Older People Interest Concessions Land and Buildings, Medical Treatment, Veteran's Pension, and War Disablement Pensions.
Outcome - Communities, Hapu and Iwi Interest Concessions Land and Buildings
Objective - Strengthening communities. Build our relationships with, and the capability of, the community and voluntary sector to ensure that New Zealand families and communities are strong and resilient.  

Interest Concessions Land and Buildings (M75)

Scope of Appropriation

Provision of the differential between the 3% or 5% Rehabilitation Loan rate and the current market rate as set out in the Rehabilitation Act 1941. Legislation enacting the scheme was repealed in August 1991 and the Rehabilitation Loan Programme has since ceased. Current provisions cover the grandparenting of loans.

Expenses

Expenses - Interest Concessions Land and Buildings (M75) - Veterans' Affairs - Social Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 77 67 49

Reasons for Change in Appropriation

A decrease in the value of outstanding loans.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Interest Concessions Land and Buildings (M75) - Veterans' Affairs - Social Development
Reference Conditions
Interest Concessions Land and Buildings - Rehabilitation Loan rates are set in accordance with the Rehabilitation Act 1941. Payments continue under section 3 of the Rehabilitation Repeal Act 1991. The Rehabilitation Loan Programme funds the difference between the fixed 3% or 5% interest rate, available to eligible ex-service personnel for their mortgage, and the current market rate.  No further Rehabilitation Loans are available. These loans are being ‘grand-parented' out of the system for all recipients current immediately prior to 1 August 1991. All current loans have a value of below $11,000.

Medical Treatment (M75)#

Scope of Appropriation

Provision to pay assessment costs for War Disablement Pension applications and reviews, medical treatment costs for accepted service-related disabilities, and the costs of appliances and aids required as a result of an accepted disability. All costs associated with medical treatment are set out in the War Pensions Regulations 1956.

Expenses

Expenses - Medical Treatment (M75) - Veterans' Affairs - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 18,884 18,386 19,468 19,906 20,254 20,483

Reasons for Change in Appropriation

Approximately 68% of this increase is due to increased expenditure on Medical Treatment (excluding Australia). This reflects the increasing trends in disablement levels and multiple disabilities described below for War Disablement Pensions.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Medical Treatment (M75) - Veterans' Affairs - Social Development
Reference Conditions
Medical treatments paid in accordance with the War Pensions Regulations 1956. Medical Treatment is a War Disablement Pension entitlement available for disabilities found to be attributable to or aggravated by service with the armed forces prior to 1 April 1974, or as a result of service on or after 1 April 1974 in connection with a recognised war or emergency. This entitlement covers medical assessment costs and costs related to individual veteran's medical treatment, including pharmaceutical supplies, aids and appliances, and travel associated with medical appointments. Medical Treatment is paid on an ad hoc basis and is made up of three categories: Medical Treatment (excluding Australia), Australian Medical Treatment, and Aids and Appliances.

Veterans' Pension (M75)#

Scope of Appropriation

Provision of income support for ex-service people in a declared war or emergency who have either reached the qualifying age for New Zealand Superannuation and are on a 70% (or greater) War Disablement Pension, or are prevented from undertaking employment for a substantial period due to disability and who fulfill the New Zealand citizenship and residency requirements as set out in the War Pensions Act 1954.

Expenses

Expenses - Veterans' Pension (M75) - Veterans' Affairs - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 161,433 161,082 177,356 193,391 204,527 216,083

Reasons for Change in Appropriation

Just over half of the growth results from cost of living adjustments. Increased take-up of this pension accounts for the remainder.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Veterans' Pension (M75) - Veterans' Affairs - Social Development
Reference Conditions
Veteran's Pensions paid in accordance with the criteria set out in section 70 of the War Pensions Act 1954. Veteran's Pension is payable 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 for a War Disablement Pension of at least 70%, or not reached the qualifying age but are prevented from working for a substantial period because of a disablement from any cause. Veteran's Pension is not income-tested but is taxable. The rates of payment are the same as for New Zealand Superannuation. The spouses of deceased Veteran's Pension recipients continue to receive it or may be awarded Veteran's Pension if the deceased veteran would have been entitled to receive it at their date of death.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Veterans' Pension (M75) - Veterans' Affairs - Social Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas 2008/09 - 6 25 26 27
Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage 2006/07 1,952 1,900 1,173 76 76
Single Rates of New Zealand Superannuation for Married People 2006/07 162 170 170 170 170
The extension of the period of time a person can continue to receive Veterans' Pension while they are overseas and working voluntarily for an aid agency, from 52 weeks to 156 weeks. 2006/07 7 7 7 7 7
The extension of eligibility for the single or single living alone rate of Veterans' Pension to all veterans' pensioners who have spouses or partners in long-term residential care 2005/06 4 4 4 4 4

War Disablement Pensions (M75)#

Scope of Appropriation

Provision to pay War Disablement Pensions to ex-service people who have a disability attributable to, or aggravated by service in a declared war or emergency at any time, or in routine service prior to 1 April 1974 as set out in the War Pensions Act 1954. This appropriation also covers Surviving Spouse Pensions as set out in the War Pensions Act 1954, the allowances set out under the War Pensions Act 1954 and the War Pensions Regulations 1956.

Expenses

Expenses - War Disablement Pensions (M75) - Veterans' Affairs - Social Development
  2007/08 2008/09 2009/10 2010/11 2011/12
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 133,235 132,812 139,314 145,603 151,624 158,114

Reasons for Change in Appropriation

Indexation of rates and the increase in average disability levels more than offsetting the fall in the number of recipients.

Conditions on Use of Appropriation

Conditions on Use of Appropriation - War Disablement Pensions (M75) - Veterans' Affairs - Social Development
Reference Conditions
War Disablement Pensions are paid in accordance with the criteria set out in the War Pensions Act 1954, the allowances set out under the War Pensions Act 1954, and the War Pensions Regulations 1956. A War Disablement Pension may be payable to:
  • ex-service personnel whose disablement is attributable to, or has been aggravated by their service in a recognised war or emergency, and
  • routine-service personnel whose disablement was caused by, or aggravated by, Service prior to the implementation of the Accident Compensation Act (now known as Injury Prevention, Rehabilitation, and Compensation Act 2001) on 1 April 1974.
A War Disablement Pension may be received on its own or in conjunction with other social assistance or income.
Weekly payments range from $9.10 for a 5% disablement to $182.02 for a 100% disablement. An additional pension of up to 60% may be awarded to those already in receipt of a 100% pension in cases of severe disablement (up to a total pension payment of $320.34).Surviving Spouse Pension of $134.26 per week may be payable to surviving spouses or surviving partners of ex-service personnel or routine-service personnel in certain circumstances. This pension is paid in addition to any other social assistance or income. There is also provision to pay specific concessions and allowances to veterans with certain disabilities, and educational bursaries to children of veterans. Educational bursary payments range from $199.46 to $946.79 per child, per year.

Performance Information for Appropriations Vote Youth Development#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Youth Affairs (M77)

ADMINISTERING DEPARTMENT: Ministry of Social Development

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

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister of Youth Affairs is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

  • A total of just over $5.5 million for the provision of policy advice, delivery of services and leadership to improve services for young people.
  • A total of just over $8 million to provide programmes and services to implement the Youth Development Strategy Aotearoa.
  • A total of nearly $900,000 to provide one-off partial funding to Territorial Authorities to respond to emerging needs of young people.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Youth Development
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations
Theme: Families - young and old
  • strong families
Working Age People: Youth Development, Services for Young People, and Youth Development Partnership Fund.
Theme: Families - young and old
  • healthy confident kids
Children and Young People: Youth Development, Services for Young People, and Youth Development Partnership Fund.
Theme: Families - young and old
  • safe communities
Communities, Hapu and Iwi: Youth Development, Services for Young People, and Youth Development Partnership Fund.

Objectives of the Vote

The appropriations in Vote Youth Development assist in achieving the following Government priority:

  • All families, young and old, have the support and choices they need to be secure and be able to reach their full potential within our knowledge based economy.

Vote Youth Development provides on behalf of the Government a significant contribution to the theme of Families - young and old.

The impacts that the appropriations in Vote Youth Development are intended to have on different groups in society are reflected in the Ministry of Social Development's outcomes:

  • Children and Young People.
  • Working Age People.
  • Communities, Hapu and Iwi.

The table above maps the Ministry of Social Development's outcomes and the Vote Youth Development appropriations to the Government's theme of Families - young and old, and the Government's Outcomes and Objectives.

Summary of Financial Activity

Summary of Financial Activity - Youth Development
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 11,873 13,646 13,444 14,144 14,168 14,168 5,536 8,899 14,435 14,959 15,838 16,774
Benefits and Other Unrequited Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 101 97 95 - - - - - - - - -
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

11,974 13,743 13,539 14,144 14,168 14,168 5,536 8,899 14,435 14,959 15,838 16,774

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue - - - - - - N/A N/A - - - -
Capital Receipts - - - - - - N/A N/A - - - -

Total Crown Revenue and Receipts

- - - - - - N/A N/A - - - -

Budget Policy Initiatives

Budget Policy initiatives - Youth Development
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) Services for Young People (M77)Non Departmental Output Expense - 1,044 1,911 2,790 3,726
Total Initiatives   - 1,044 1,911 2,790 3,726

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Youth Development, are discussed briefly below.

Figure 1 - Trends in total budgeted and actual expenses and capital expenditure

Trends in total voted and actual expenses and capital expenditure
Trends in total voted and actual expenses and capital expenditure
Source: Ministry of Social Development

Departmental Output Trends 2003/04 to 2008/09

On 1 July 2004 the name of Vote changed from Youth Affairs to Vote Youth Development.

Departmental appropriations decreased slightly in 2005/06. While $1.022 million was transferred from non-departmental funding to increase the ability to identify, capture and disseminate good youth development practice, this was offset by the transfer of administrative responsibility for the New Zealand Suicide Prevention Strategy to Vote Health.

Departmental appropriations decreased slightly in 2006/07. The transfer of administrative responsibility for the New Zealand Youth Suicide Prevention Strategy to Vote Health in Budget 2004 transferred more funding in 2006/07 than in 2005/06.

On 1 July 2007 the structure of the Departmental Output Expenses changed. Three Departmental Output Expenses were amalgamated to form one, Youth Development. This provided greater flexibility to respond to new priorities, without any loss of transparency and accountability.

In 2008/09 departmental appropriations decreased because: the funding for the Youth'07 Health and Wellbeing Survey, ceased in 2007/08; and one-off funding received in 2007/08 for Mentoring and Services for Young People ceased.

Non-Departmental Output Trends 2003/04 to 2008/09

Non-departmental appropriation changes up until 2005/06 reflect the expansion of the Specialist Youth Services Corps programme in 2003/04, increased funding for Youth Development programmes in 2004/05, and expansion of the Youth Suicide programme in 2004/05.

The non-departmental appropriations changed significantly in 2005/06 reflecting a commitment to further implement the Youth Development Strategy Aotearoa at a regional and local level. Previous non-departmental appropriations were consolidated into a single appropriation called Services for Young People. Also $1.022 million was transferred into a departmental appropriation to increase the ability of the Ministry of Youth Development to identify, capture and disseminate good youth development practice. A further $889,000 was transferred into a second new non-departmental appropriation called Youth Development Partnership Fund. Finally, the Youth Suicide Prevention funding was transferred to Vote Health as part of the transfer of administrative responsibility for the New Zealand Suicide Prevention Strategy.

Non-Departmental Output Expenses increased slightly in 2006/07. The main reason for the increase was two expense transfers ($847,000) from 2005/06 to 2006/07 which gave a one-off boost to funding in 2006/07.

Non-Departmental Output Expenses decreased slightly in 2007/08. This occurred because the two expense transfers to 2006/07 did not occur in 2007/08. This decrease was offset by the Budget 2007 initiative Mentoring and Services for Young People.

Non-Departmental Output expenses increase slightly in 2008/09. This is largely due to increased funding of the Pathway to Partnership initiative in 2008/09 compared with 2007/08 and funding in 2007/08 only, for the Budget 2007 initiative Mentoring and Services for Young People.

Output expenses

Significant trends in comparative actual and estimated expenses for Output Expenses appropriations under this Vote are shown in Figure 2 below, including budgeted and estimated actual figures for the preceding year.

Figure 2 - Trends in output expenses

Trends in Output Expenses
Trends in Output Expenses
Source: Ministry of Social Development

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.1 Departmental Output Expenses - Youth Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Outcome - Children and Young People Youth Development
Objective - Give children the best start in life. Children are New Zealand's future. All children grow up in a safe and happy environment.  
Objective - Help young people achieve their potential. Young people are supported to overcome barriers, and develop their understanding and ability to make good decisions about the range of issues and opportunities they may face.  
Outcome - Working Age People Youth Development
Objective - Enable people to live independent lives. All New Zealanders have access to services and the ability to obtain skills that will allow them to live healthy and productive lives and to achieve independence throughout their working lives.  
Outcome - Communities, Hapu and iwi Youth Development
Objective - Strengthening communities. Build our relationships with, and the capability of, the community and voluntary sector to ensure that New Zealand families and communities are strong and resilient.  

Youth Development (M77)

Scope of Appropriation

Leadership and provision of policy advice and service delivery to improve outcomes for young people.

Expenses and Revenue

Expenses and Revenue - Youth Development (M77) - Youth Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,891 5,891 5,536
Revenue from the Crown 5,614 5,614 5,499
Revenue from Others 277 277 37

Output Performance Measures and Standards

Output Performance Measures and Standards - Youth Development (M77) - Youth Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
Quantity and Timeliness      
Advice will be delivered in accordance with the work programme agreed with the Minister of Youth Affairs: Standard met Standard met Standard met
Quality      
Process      
An audit shows that the Ministry of Social Development's policy processes as outlined in the Quality Management System have been followed in at least: 90% of cases 90% of cases 90% of cases
Technical robustness      
An external independent review of the Ministry of Youth Development's policy advice confirms that it meets acceptable standards based on pre-determined criteria: Standard met Standard met Standard met
Accuracy      
The percentage of Ministerial drafts provided for the Minister's signature where error could have been avoided will be no less than: 95% 95% 95%
The percentage of Parliamentary Question drafts provided for the Minister's signature where error could have been avoided will be no less than: 100% 100% 100%
The percentage of draft Ministerial replies to be completed within 20 working days of receipt by the Ministry, unless otherwise agreed, will be: 95% 95% 95%
Information for oral parliamentary questions will be provided to the Minister of Youth Affairs' office within the timeframe they specify: 100% 100% 100%
The percentage of written parliamentary questions will be answered within the time as specified by the Minister of Youth Affairs' office will be: 100% 100% 100%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Youth Development (M77) - Youth Development
Reference Conditions
Policy Advice - Standard Met Standard met means that we have received confirmation from the Minister of Youth Affairs via their Office that advice has been delivered in accordance with a work programme.
Quality The work in relation to the audit, review or survey for these measures will be conducted during the year and reported on an annual basis.
Quality Management System The quality characteristics in the Ministry's Quality Management System are based on decision-making (defining, debating and deciding) and communication (capturing issues, convincing and confirming).
Technical robustness - Standard Met The standard for this measure is based on a continuum of: standard not met, standard met and standard exceeded.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Youth Development (M77) - Youth Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Mentoring and Services for Young People 2007/08 115 - - - -

Part 2.2 - Non-Departmental Output Expenses#

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Youth Development
Intended Impacts, Outcomes or Objectives of Appropriations Appropriations
Children and Young People Services for Young People and Youth Development Partnership Fund.
Working Age People Services for Young People and Youth Development Partnership Fund.
Communities, Hapu and Iwi Services for Young People and Youth Development Partnership Fund.

Services for Young People (M77)

Scope of Appropriation

Provision of programmes and services to enable the implementation of the Youth Development Strategy Aotearoa at a regional and local level.

Expenses

Expenses - Services for Young People (M77) - Youth Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,388 7,388 8,010

Reasons for Change in Appropriation

The increase in this appropriation is largely due to additional funding from the Pathways to Partnership initiative in 2008/09.

Output Performance Measures and Standards

Output Performance Measures and Standards - Services for Young People (M77) - Youth Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of programmes or services purchased will be between: New measure in 2008/09 New measure in 2008/09 120 - 140
The number of young people participating in programmes or services purchased will be no less than: New measure in 2008/09 New measure in 2008/09 1,400
The percentage of participants who report being satisfied or very satisfied with the service or programme will be no less than: 80% 80% 80%
The percentage of participants who report an improvement in their personal and social skills as a result of the programme will be no less than: Revised measure in 2008/09 Revised measure in 2008/09 80%
The percentage of participants who move into employment or structured learning opportunities after completion of the programme will be no less than: Revised measure in 2008/09 Revised measure in 2008/09 65%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Services for Young People (M77) - Youth Development
Reference Conditions
Cabinet Guidelines for Services for Young People The Cabinet Guidelines provide specificity about the purchase of programmes and services from within Services for Young People. Cabinet agreed to the guidelines in April 2005.

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Services for Young People (M77) - Youth Development
Policy Initiative Year of
First
Impact
2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Supporting a Sustainable NGO Social Services Sector (Pathway to Partnership) 2008/09 - 1,044 1,911 2,790 3,726
Mentoring and Services for Young People 2007/08 585 - - - -
Improving the Capacity and Capability of Community Providers of Youth Development Programmes 2004/05 1,067 1,067 1,067 1,067 1,067

Youth Development Partnership Fund (M77)#

Scope of Appropriation

Provision of one-off partial funding, to assist Territorial Authorities to respond to the emerging needs and opportunities for young people.

Expenses

Expenses - Youth Development Partnership Fund (M77) - Youth Development
  2007/08 2008/09
  Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 889 889 889

Output Performance Measures and Standards

Output Performance Measures and Standards - Youth Development Partnership Fund (M77) - Youth Development
  2007/08 2008/09
Performance Measures Budgeted
Standard
Estimated Actual
Standard
Budget
Standard
The number of territorial authorities receiving partial funding will be between: New measure in 2008/09 New measure in 2008/09 10 - 20
The percentage of participants who report being satisfied or very satisfied with the project will be no less than: New measure in 2008/09 New measure in 2008/09 80%
The percentage of participants who report they have obtained increased skills or motivation to move into employment or structured learning opportunities will be no less than: Revised measure in 2008/09 Revised measure in 2008/09 80%
The percentage of participants who report they are able to move into employment or structured learning opportunities after completion of the project will be no less than: Revised measure in 2008/09 Revised measure in 2008/09 70%

Conditions on Use of Appropriation

Conditions on Use of Appropriation - Youth Development Partnership Fund (M77) - Youth Development
Reference Conditions
Cabinet Guidelines for Youth Development Partnership Fund The Cabinet Guidelines provide specificity about the purchase of programmes and services from within the Youth Development Partnership Fund. Cabinet agreed to the guidelines in April 2005.

Summary of Service Providers#

Summary of Service Providers - Summary of Service Providers - Youth Development
Provider 2007/08
Budgeted
$000
2007/08
Estimated Actual
$000
2008/09
Budget
$000
Reporting
Mechanism
Expiry of
Funding
Commitment
The Foundation for Youth Development Incorporated          
  • Services for Young People
385 385 Contract information unavailable for 2008/09. Section 32A report  
YMCA Wanganui          
  • Services for Young People
365 365 Contract information unavailable for 2008/09. Section 32A report  
Hamilton Skills Centre (Te Whare Arapuna)          
  • Services for Young People
346 346 Contract information unavailable for 2008/09. Section 32A report  
Malcam Charitable Trust          
  • Services for Young People
335 335 Contract information unavailable for 2008/09. Section 32A report  
Tuwharetoa Ki Tongariro Outdoor Pursuits          
  • Services for Young People
316 316 Contract information unavailable for 2008/09. Section 32A report  
YMCA New Plymouth          
  • Services for Young People
255 255 Contract information unavailable for 2008/09. Section 32A report  
SENZ Training and Employment Centre          
  • Services for Young People
253 253 Contract information unavailable for 2008/09. Section 32A report  
Southland YMCA Education          
  • Services for Young People
253 253 Contract information unavailable for 2008/09. Section 32A report  
New Zealand School of Outdoor Studies          
  • Services for Young People
250 250 Contract information unavailable for 2008/09. Section 32A report  
Youth and Cultural Development Society          
  • Services for Young People
246 246 Contract information unavailable for 2008/09. Section 32A report  
Te Runanga O Turanganui A Kiwa          
  • Services for Young People
242 242 Contract information unavailable for 2008/09. Section 32A Report  
Young New Zealanders Challenge          
  • Services for Young People
237 237 Contract information unavailable for 2008/09. Section 32A report  
Maniapoto Training Agency          
  • Services for Young People
200 200 Contract information unavailable for 2008/09. Section 32A report  
Whangarei District Council          
  • Youth Development Partnership Fund
144 144 Contract information unavailable for 2008/09. Section 32A report 20 June 2010
Tairawhiti Polytechnic          
  • Services for Young People
120 120 Contract information unavailable for 2008/09. Section 32A report  
New Zealand Aotearoa Adolescent Health and Development          
  • Services for Young People
120 120 Contract information unavailable for 2008/09. Section 32A report  
Wellington Salvation Army Youth Services          
  • Services for Young People
117 117 Contract information unavailable for 2008/09. Section 32A report  
Y 2 Y Trust          
  • Services for Young People
114 114 Contract information unavailable for 2008/09. Section 32A report  
Elkington Associates          
  • Services for Young People
114 114 Contract information unavailable for 2008/09. Section 32A report  
E Tipu E Rea Trust          
  • Services for Young People
114 114 Contract information unavailable for 2008/09. Section 32A report  

This table presents the 20 major service providers Vote Youth Development has funding arrangements with.

The above table summarises funding to be allocated through Vote Youth Development to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

Performance Information for Appropriations Vote Housing#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Building and Construction (M9), Minister of Housing (M37)

ADMINISTERING DEPARTMENT: Department of Building and Housing

MINISTER RESPONSIBLE FOR DEPARTMENT OF BUILDING AND HOUSING: Minister for Building and Construction

Part 1 - Summary of the Vote

Part 1.1 - Overview of the Vote

The Minister for Building and Construction is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

  • A total of just over $17 million on delivering regulatory and control services for the building industry under the Building Act 2004 and related consumer information.
  • A total of nearly $10 million on developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers.
  • A total of just over $5 million on providing sector and regulatory policy advice on the building and housing sector in New Zealand, and providing purchase and performance monitoring advice to Government in relation to Housing New Zealand Corporation (HNZC).
  • A total of nearly $22 million on providing services under the Residential Tenancies Act 1986, including advice and guidance, dispute resolution and the administration of residential tenancy bond monies.
  • A total of just under $17 million on providing assessment and dispute resolution services under the Weathertight Homes Resolution Services Act 2006.
  • A total of just over $8 million on departmental capital expenditure.

The Minister of Housing is responsible for appropriations in the Vote for the 2008/09 financial year covering the following:

  • A total of nearly $15 million on purchasing housing support services.
  • A total of just over $2 million on the purchase of housing policy advice from Housing New Zealand Corporation.
  • A total of nearly $10 million for the management of Crown owned properties.
  • A total of just over $11 million on housing assistance payments.
  • A total of just over $496 million on Income Related Rent (IRR) subsidies to Housing New Zealand Corporation.
  • A total of $5 million on the community housing rent relief programme.
  • A total of just over $2 million on increase in provision for doubtful debts on IRR Debt.
  • A total of just over $295 million on capital expenditure.

Details of these appropriations are set out in Parts 2-6 below.

Part 1.2 - High-Level Objectives of the Vote#

Government Priorities and Outcomes - Links to Appropriations

Government Priorities and Outcomes - Links to Appropriations - Housing
Government Priorities - Themes / Sub-themes Government Outcomes Appropriations

Economic Transformation

   
Sub-themes: Quality regulation in the building and construction industry (CBC(07)22) Building Regulation and Control
Innovative and Productive Workplaces: Upskilling the Workforce. Sector and Regulatory Policy
New Zealand's economy will be transformed by the ability of its globally competitive workforce to apply its skills, ideas, and technologies. Occupational Licensing

Families - Young and Old

   
Sub-themes: Reduced unmet housing need(New Zealand Housing Strategy, 2005) State House Acquisitions
Strong Families: Ensure that all families and whanau have the support and choices they need to be secure and be able to support their members to reach their full potential, and that New Zealanders are supported if care and support from within the family is unavailable to them. Community Housing Acquisitions
Reduced housing inequality(New Zealand Housing Strategy, 2005) Income Related Rent Subsidy
Community Housing Rent Support Scheme
Home Ownership Education Programme
Improved housing affordability (Speech from the Throne; CBC(06)275) Mortgage Insurance Scheme (Welcome Home Loan programme)
Shared Equity programme
Hobsonville development
Sector and Regulatory Policy
Better Health for All: New Zealanders are able to promote and protect their health and participate in their communities. Improved housing quality
(New Zealand Housing Strategy, 2005; CBC(06)275)
Building Regulation and Control
Occupational Licensing
Weathertight Homes Resolution Service
Financial assistance Non-Weathertight Homes
Sector and Regulatory Policy
Strong and Safe Communities: Ensure that people are able to participate in their community and that their rights and interests are protected and promoted. Housing sector encourages appropriate provision of and investment in housing(New Zealand Housing Strategy, 2005) Housing Innovation Fund
Residential Tenancy Services
Hobsonville development
Housing Policy Advice
Sector and Regulatory Policy

Summary of Financial Activity

Summary of Financial Activity - Housing
  2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
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 19,649 35,726 75,831 89,863 103,850 102,958 70,561 26,688 97,249 95,981 95,214 92,300
Benefits and Other Unrequited Expenses 347,463 383,602 400,002 440,371 473,103 473,103 N/A 507,156 507,156 537,017 566,339 596,218
Borrowing Expenses - - - - 3,989 3,989 - - - - - -
Other Expenses 4,500 4,500 4,833 5,575 5,807 5,307 - 7,251 7,251 7,244 7,779 7,779
Capital Expenditure 612,206 202,416 292,251 447,535 338,829 337,629 8,138 295,093 303,231 294,799 187,555 186,249
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -

Total Appropriations

983,818 626,244 772,917 983,344 925,578 922,986 78,699 836,188 914,887 935,041 856,887 882,546

Crown Revenue and Receipts

                       
Tax Revenue - - - - - - N/A N/A - - - -
Non-Tax Revenue 226,488 129,244 110,888 135,374 165,165 165,165 N/A N/A 156,704 153,962 148,651 139,435
Capital Receipts - - - - - - N/A N/A 1,858 4,619 9,200 22,153

Total Crown Revenue and Receipts

226,488 129,244 110,888 135,374 165,165 165,165 N/A N/A 158,562 158,581 157,851 161,588

Budget Policy Initiatives

Budget Policy initiatives - Housing
Policy Initiative Appropriation 2007/08
Budgeted
$000
2008/09
Budget
$000
2009/10
Estimated
$000
2010/11
Estimated
$000
2011/12
Estimated
$000
Building Code Review Implementation Building Regulation and Control
Departmental Output Expenses
- 1,765 1,965 1,720 995
Implementation of the NZ Energy Efficiency and Conservation Strategy 2007 Building Regulation and Control
Departmental Output Expenses
- 1,565 1,565 750 -
Electrical workers registration and licensing system Occupational Licensing
Departmental Output Expenses
- 214 434 510 510
Electrical workers registration and licensing system - Capital injection Departmental Capital Expenditure
Capital Expenditure
- 944 625 - -
Amendments to Residential Tenancies Act 1986 Residential Tenancy Services
Departmental Output Expenses
253 552 412 311 311
Amendments to Unit Titles Act 1972 Residential Tenancy Services
Departmental Output Expenses
72 563 394 395 395
Purchase and Monitoring Advice -Housing New Zealand Corporation Purchase and Monitoring Advice -Housing New Zealand Corporation
Departmental Output Expenses
130 230 230 230 230
Energy Efficient Warm Homes Income related Rent Subsidy
Benefits and Other Unrequited Expenses
- 60 66 52 53
Energy Efficient Warm Homes Acquisition and Improvement of Housing New Zealand State Houses
Capital Expenditure
- 4,400 6,000 6,000 6,000
Papakainga Loans Loans to Support Homeownership
Capital Expenditure
- 1,500 - - -
Housing Agency Account Funding(excluding the Hobsonville Project) Management of Crown Properties held under the Housing Act 1955
Non-departmental Output Expenses
1,247 1,630 1,717 1,704 1,691
  Acquisition and Development of properties under the Housing Act 1955
Capital Expenditure
8,945 - - - -
  Capital Injections to Housing New Zealand Corporation for Housing Activities
Capital Expenditure
(8,945) - - - -
Hobsonville: Urban Development Management of Crown Properties held under the Housing Act 1955
Non-departmental Output Expenses
- 8,042 8,376 8,736 8,918
  Acquisition and Development of Properties under the Housing Act 1955
Capital Expenditure
- 7,764 17,517 13,448 12,142
Shared Equity Home Ownership HNZC Housing Support Services
Non-departmental Output Expenses
- 224 (277) (1,083) (896)
  Housing Assistance
Benefits and Other Unrequited Expenses
- 47 - - -
  Loans to Support Homeownership
Capital Expenditure
- 18,469 20,083 - -
Total Initiatives   1,702 47,969 59,107 32,773 30,349

Analysis of Significant Trends

Total Vote: All Appropriations

Significant changes in departmental and non-departmental appropriations in Vote Housing, are discussed briefly below.

Departmental Output Expenses

During 2004/05 a review was carried out of the configuration of agencies and functions in the housing sector. After this review it was agreed to fold a range of regulatory and dispute resolution functions into an expanded and renamed Ministry of Housing, namely the Department of Building and Housing (DBH). The establishment of the new Department required output class structure changes to more accurately reflect the role of the new organisation.

During 2004/05 the new output class, Residential Tenancy Services, was created which was the amalgamation of the output classes Administration of Residential Tenancies Bond Monies, Residential Tenancies Information and Dispute Resolution, and State Housing Appeal Authority.

The Building Act 2004 Implementation and Building Regulation and Controls output classes transferred from the Building Industry Authority. Occupational Licensing funding for the design, establishment and maintenance of the occupational licensing regime for building practitioners under the Building Act 2004 transferred from the Ministry of Economic Development.

Additional appropriations in 2004/05 for these output classes totalled $17.343 million.

In 2005/06 the Weathertight Homes Resolution Service was transferred into the Department of Building and Housing from the Department of Internal Affairs with an initial funding of $17.689 million in 2005/06 reducing to $15 million in 2008/09. The resolution service is provided to owners of dwelling houses affected by the leaky building syndrome.

In 2006/07 the electrical workers registration system was transferred from the Ministry of Economic Development (Vote Energy). Additional funding was provided to enhance the Weathertight Homes Resolution Service and for complementary initiatives - consumer education, the assessment and development of options for the introduction of home warranty insurance and professional indemnity insurance into New Zealand, and research to ensure that non-weathertight dwellings are repaired effectively. The Department of Building and Housing was provided with capability funding for essential infrastructure resources, in particular, for core information and communications technology (ICT) systems and secondly, to provide a foundation for adequately maintaining an appropriate fixed asset base going forward. Some functions for the Electrical Workers Registration Board were transferred from the Ministry of Economic Development.

In 2007/08 the level of funding for implementing the Building Act 2004 was reduced, reflecting the progress in implementation of the Act. The adjudication function for the Weathertight Homes Resolution Service was transferred to the Ministry of Justice.

The most significant developments in Budget 2008 are as follows:

  • a reduction in funding for implementing the Building Act 2004
  • a reduction in funding for the Weathertight Homes Resolution Service, reflecting a forecast reduction in volume of services
  • funding to implement the Building Code Review and the New Zealand Energy Efficiency and Conservation Strategy, funded from Revenue Other.

The following chart shows the trend in departmental output expenses appropriations and reflects the establishment and ongoing formation of the Department of Building and Housing.

Figure 1 - Trend in departmental output expenses appropriations from 2004/05 to 2011/12

Trend in departmental output expenses appropriations from 2004/05 to 2011/12
Trend in departmental output expenses appropriations from 2004/05 to 2011/12
Source: Department of Building and Housing

Non-Departmental Output Expenses

In 2004/05, $178,000 was added to support and enable HNZC to respond to increased demand for policy advice on housing issues and a further $44,000 for the evaluation of the Government's housing response in the Northland, East Cape and Bay of Plenty (NECBOP) regions. In addition $267,000 was added to Contracted Housing Support Services to continue the fire safety campaign.

In 2005/06, a new non-departmental output expense: Registration Regime for Architects ($225,000 for operating expenses and $45,000 for capital contribution) was created for the establishment of a registration, monitoring and reporting regime for architects.

In 2006/07, $7.5 million was appropriated for the Rural Housing programme to continue addressing sub-standard housing in rural areas, $4.37 million to expand the current mortgage insurance scheme to assist people into home ownership, $2.373 million to enable the continuation of the support for the Community Renewal programme. Additional appropriations included $889,000 to enable the continuation of the support for the Healthy Housing programme, $889,000 to implement a home ownership education programme, $2.293 million to increase policy and research capability and $444,000 to investigate a potential partnership arrangement between HNZC and Wellington City Council.

In 2006/07, a two year pilot loan assistance scheme was implemented for owners of non-weathertight homes, including loan guarantees of private sector loans, and HNZC direct lending products on commercial terms. Underspending on the Mortgage Insurance Scheme (MIS, marketed as 'Welcome Home Loans') was also reprioritised.

In 2007