Supplementary estimates of appropriations

Vote Social Development - Supplementary Estimates 2015/16

APPROPRIATION MINISTER(S): Minister for Disability Issues (M23), Minister of Finance (M31), Minister for Social Housing (M37), Minister of Revenue (M57), Minister for Seniors (M61), Minister for Social Development (M63), Minister of State Services (M66), Minister of Veterans' Affairs (M75), Minister for Youth (M77)

APPROPRIATION ADMINISTRATOR: Ministry of Social Development

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

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2015/16
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Administration of Trialling New Approaches to Social Sector Change (M63)

This appropriation is limited to the administration by committed individuals of the delivery of social sector services as part of the Social Sector Trials in specified locations.
4,120 (4,120) -

Adoption Services (M63)

This appropriation is limited to the management of services, incorporating education, assessment, reporting, counselling, and mediation, to all people who are party to adoption-related matters, past or present.
7,177 - 7,177

Care and Protection Services (M63)

This appropriation is limited to social work services, both statutory and informal, that protect and assist children and young people who are in need of care and protection, including education and advice services for the recognition and prevention of child abuse and neglect.
391,831 4,374 396,205

Children's Action Plan (M63)

This appropriation is limited to activities necessary to implement the Children's Action Plan.
13,394 (500) 12,894

Data, Analytics and Evidence Services (M63)

This appropriation is limited to providing data, analytics and evidence services to better inform government decision-making.
11,420 (40) 11,380

Designing and Implementing Social Investment (M31)

This appropriation is limited to expenses incurred in designing and implementing a cross agency social investment system.
- 2,000 2,000

Income Support and Assistance to Seniors (M63)

This appropriation is limited to paying New Zealand Superannuation and social security entitlements to older persons, providing advice to them, administering international social security agreements relating to non-superannuitants, and assessing financial entitlement to Residential Care Subsidies.
37,022 (120) 36,902

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

This appropriation is limited to services to minimise errors, fraud and abuse of the benefit system and Income Related Rent, and services to manage the collection of overpayments, recoverable assistance loans and other balances owed by former clients.
49,510 (160) 49,350

Investing in Communities (M63)

This appropriation is limited to approving community based social services; managing the relationship with service providers, including funding and monitoring; and the co-ordination of social support services to strengthen families and whanau.
46,231 (445) 45,786

Management of Service Cards (M63)

This appropriation is limited to assessing entitlement, issuing cards, and promoting and distributing information about the Community Services, SuperGold and Veteran SuperGold cards, including enlisting business partners to provide discounts to SuperGold cardholders.
6,629 (350) 6,279

Management of Student Loans (M57)

This appropriation is limited to assessing, paying and reviewing entitlements for student loans and providing guidance to students making financial and study decisions.
15,045 - 15,045

Management of Student Support (M63)

This appropriation is limited to managing non-recoverable financial support to students, involving assessing and paying Student Allowances and other income support to eligible secondary and tertiary students.
15,704 - 15,704

Planning, Correspondence and Monitoring (M63)

This appropriation is limited to providing planning, reporting, monitoring and statutory appointment advice (other than policy decision-making advice) on Crown entities, and correspondence services to support Ministers to discharge their portfolio responsibilities.
5,554 600 6,154

Policy Advice (M63)

This appropriation is limited to providing advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government social policy matters, including social sector issues.
19,572 1,150 20,722

Processing and Payment of Veterans' Pensions (M75)

This appropriation is limited to the processing and payment of Veterans' Pensions and related allowances.
438 - 438

Promoting Positive Outcomes for Disabled People (M23)

This appropriation is limited to providing services to promote and monitor the implementation of the New Zealand Disability Strategy, to monitor and implement the United Nations Convention on the Rights of Persons with Disabilities, and to provide information to Ministers on disability matters.
5,745 34 5,779

Property Management Centre of Expertise (M66)

This appropriation is limited to the operation of the Property Management Centre of Expertise, to provide leadership, guidance and support, monitoring and brokerage in respect of property management within the State Sector.
2,755 2,081 4,836

Senior Citizens Services (M61)

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

Youth Development (M77)

This appropriation is limited to providing leadership and service delivery to promote the interests of, and improve outcomes for, young people.
2,932 - 2,932

Youth Justice Services (M63)

This appropriation is limited to social work and other services to manage and resolve offending behaviour by children and young people, by providing assessment, support, programmes, containment and care of young offenders.
132,641 (1,765) 130,876

Total Departmental Output Expenses

768,730 2,739 771,469

Departmental Other Expenses

     

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

This appropriation is limited to the co-design and implementation of system-wide reform of services provided to New Zealand's vulnerable children, young people and their families.
- 3,000 3,000

Total Departmental Other Expenses

- 3,000 3,000

Departmental Capital Expenditure

     

Ministry of Social Development - Capital Expenditure PLA (M63)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Social Development, as authorised by section 24(1) of the Public Finance Act 1989.
86,501 34,337 120,838

Total Departmental Capital Expenditure

86,501 34,337 120,838

Non-Departmental Output Expenses

     

Children's Commissioner (M63)

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

Community Participation Services (M63)

This appropriation is limited to the provision of services, resources, assistance and support to people so they can participate in and contribute to the wider community.
77,468 973 78,441

Counselling and Rehabilitation Services (M63)

This appropriation is limited to the purchase of services, including family counselling and other post-crisis interventions that restore the wellbeing of children, young people and families who have suffered harm and abuse or other forms of family breakdown or youth justice issues.
18,773 - 18,773

Education and Prevention Services (M63)

This appropriation is limited to the purchase of education and prevention programmes and initiatives that aim to provide skills to children, young people and families who are at risk of harm or abuse, which will help them reduce the risk of that abuse or harm.
8,427 - 8,427

Emergency Housing Response (M37)

This appropriation is limited to activities relating to the provision of emergency housing support for eligible families and individuals in high need areas.
- 2,738 2,738

Families Commission (M63)

This appropriation is limited to the provision of services from the Families Commission to promote the wellbeing of a full range of New Zealand families and whanau through undertaking research and evidence gathering to build a transfer of knowledge to policymakers and purchasers and providers of services.
10,135 2,196 12,331

Family Wellbeing Services (M63)

This appropriation is limited to the purchase of services that aim to improve the life outcomes for children, young people and families through support and development programmes, and programmes that will prevent any future harm or abuse.
84,734 - 84,734

Part Payment of Rent to Social Housing Providers (M37)

This appropriation is limited to the part purchase of tenancies from social housing providers.
774,141 (8,000) 766,141

Services for Young People (M77)

This appropriation is limited to the provision of programmes and services to enable the implementation of the Youth Development Strategy Aotearoa at a regional and local level.
8,594 - 8,594

Short-term Housing in Canterbury (M37)

This appropriation is limited to activities relating to the provision of short-term housing in Canterbury for households who are eligible for short-term housing.
2,738 (2,738) -

Strong Families and Connected Communities (M63)

This appropriation is limited to initiatives and services, with a focus on prevention and early intervention, that support and strengthen community functioning and improve outcomes for families.
115,801 (2,050) 113,751

Student Placement Services (M63)

Provision of placement services for students for holiday and term employment.
3,512 - 3,512

Trialling New Approaches to Social Sector Change (M63)

This appropriation is limited to the delivery of social sector services as part of the Social Sector Trials in specified locations and, in those locations where that delivery is led by Non-Government Organisations, to the administration of that delivery.
4,917 (4,917) -

Youth Development Partnership Fund (M77)

This appropriation is limited to the provision of one-off partial funding, to assist Territorial Authorities to respond to the emerging needs and opportunities for young people.
889 (450) 439

Total Non-Departmental Output Expenses

1,112,286 (12,248) 1,100,038

Benefits or Related Expenses

     

Accommodation Assistance (M37)

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.
1,136,682 3,797 1,140,479

Benefits Paid in Australia (M63)

This appropriation is limited to reimbursement to the Australian Government for income support assistance provided to New Zealanders eligible under the 1994 Reciprocal Agreement pursuant to the Social Welfare (Reciprocity with Australia) Order 2002.
39,788 153 39,941

Childcare Assistance (M63)

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.
192,883 1,702 194,585

Disability Assistance (M63)

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.
378,919 (263) 378,656

Family Start/NGO Awards (M63)

Payment of course fees for Family Start family/whanau and NGO workers pursuing social work qualifications.
705 - 705

Hardship Assistance (M63)

This appropriation is limited to Civil Defence payments, Funeral Grants, Live Organ Donors Assistance, Special Benefit, Special Needs Grants, Temporary Accommodation Assistance and Temporary Additional Support to provide means-tested temporary financial assistance to persons with emergency or essential costs, paid in accordance with the criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.
277,172 16,677 293,849

Jobseeker Support and Emergency Benefit (M63)

This appropriation is limited to the provision of means-tested income support for people who are eligible for Jobseeker Support or an Emergency Benefit as set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,615,545 77,411 1,692,956

New Zealand Superannuation (M63)

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.
12,256,492 30,739 12,287,231

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

This appropriation is limited to the 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 that 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 and in relevant Welfare Programmes pursuant to it.
136,725 7,440 144,165

Sole Parent Support (M63)

This appropriation is limited to the provision of means-tested income support for people who are eligible for Sole Parent Support as set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,186,770 (23,553) 1,163,217

Special Circumstance Assistance (M63)

This appropriation is limited to financial assistance to people in special circumstances and comprises the Clothing Allowance, and providing assistance for community costs, domestic violence and witness protection relocation, home help, social rehabilitation assistance, telephone costs paid in accordance with criteria set out in the Social Security Act 1964, and delegated legislation under that Act; and Civilian Amputees Assistance, paid in accordance with criteria set out in the Disabled Persons Community Welfare Act 1975.
12,119 2,280 14,399

Student Allowances (M63)

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 dependants in accordance with the criteria established by delegated legislation issued under the Social Security Act 1964.
529,230 (14,896) 514,334

Study Scholarships and Awards (M63)

This appropriation is limited to scholarships and awards to tertiary students awarded in accordance with Cabinet decisions; and Teach NZ Scholarships awarded in accordance with the Education Act 1989.
18,910 - 18,910

Supported Living Payment (M63)

This appropriation is limited to the provision of means-tested income support for people who are eligible for Supported Living Payment as set out in the Social Security Act 1964 and delegated legislation made under that Act.
1,519,494 12,523 1,532,017

Transitional Assistance (M63)

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

Veterans' Pension (M75)

This appropriation is limited to the provision of income support for ex-service people who served in a declared war or emergency and 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 fulfil the New Zealand citizenship and residency requirements as set out in the War Pensions Act 1954.
193,440 (5,596) 187,844

Work Assistance (M63)

This appropriation is limited to the provision of payments to beneficiaries, low income earners, students and ex beneficiaries, who meet certain criteria set out in delegated legislation under the Social Security Act 1964, to assist them to obtain and maintain employment.
3,636 430 4,066

Youth Payment and Young Parent Payment (M63)

This appropriation is limited to the provision of income support and incentive payments for people aged 16, 17 or 18 years who are currently unemployed but are in or available for full-time education, training or work-based learning and where it is inappropriate for them to obtain financial support from their parents, and 16, 17, 18 and 19 year old parents who are currently unemployed but are in or available for full-time education, training or work-based learning. Paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.
45,022 (2,387) 42,635

Total Benefits or Related Expenses

19,543,597 106,457 19,650,054

Non-Departmental Other Expenses

     

Debt Write-downs (M63)

This appropriation is limited to the provision for write-downs of Crown debt administered by the Ministry of Social Development due to debt write offs or debt provisions resulting from the need to value debt in accordance with generally accepted accounting practice.
71,804 4,021 75,825

Extraordinary Care Fund (M63)

This appropriation is limited to providing financial assistance to carers receiving the Orphan's Benefit or Unsupported Child's Benefit to assist with costs for children in their care who are either experiencing difficulties that significantly impact on their development, or who are showing promise.
3,108 - 3,108

Out of School Care Programmes (M63)

This appropriation is limited to the provision of assistance to Child, Youth and Family-approved Out of School Care and Recreation programmes to assist with the establishment and/or operating costs of OSCAR programmes.
19,045 - 19,045

Support for the Provision of Social Housing Supply (M37)

This appropriation is limited to providing support to secure access to properties for social housing providers to use for social housing tenancies.
- 20,000 20,000

Total Non-Departmental Other Expenses

93,957 24,021 117,978

Non-Departmental Capital Expenditure

     

Recoverable Assistance (M63)

This appropriation is limited to recoverable assistance payments, as a facility for low-income earners and beneficiaries to access means-tested assistance to help them to meet essential and immediate needs, or costs in specific circumstances, and to meet costs of pre-employment drug tests, in accordance with criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.
143,162 6,997 150,159

Student Loans (M57)

This appropriation is limited to loans to tertiary students undertaking studies at approved tertiary institutions in accordance with Cabinet decisions.
1,680,463 2,273 1,682,736

Total Non-Departmental Capital Expenditure

1,823,625 9,270 1,832,895

Multi-Category Expenses and Capital Expenditure

     

Improved Employment and Social Outcomes Support MCA (M63)

The single overarching purpose of this appropriation is to operate the benefit system and associated interventions in such a way as to improve client outcomes (employment and social) by moving them closer to independence, with a focus on those at risk of long term benefit receipt.
679,991 (1,092) 678,899
Departmental Output Expenses
     
Administering Income Support
This category is limited to assessing, paying, reviewing entitlements and collecting balances owed by clients for income support, supplementary assistance, grants and allowances.
340,176 (32,705) 307,471
Improving Employment Outcomes
This category is limited to providing specified assistance, including services provided in accordance with criteria set out in delegated legislation under the Social Security Act 1964, to support people who are receiving or likely to receive working age benefits or youth support payments and are work ready to move into sustainable employment.
269,382 26,337 295,719
Improving Work Readiness Outcomes
This category is limited to providing services, including services provided in accordance with criteria set out in delegated legislation under the Social Security Act 1964, to address barriers to employment (such as literacy, numeracy, health, skills, drug or alcohol use, confidence and motivation) for people who are receiving or likely to receive working age benefits or youth support payments so that they become work ready.
70,433 5,276 75,709

Independent Advice on Government Priority Areas MCA (M63)

The overarching purpose of this appropriation is to provide independent advice to the Minister for Social Development for discharging decision-making responsibilities.
538 - 538
Non-Departmental Output Expenses
     
Other Advice
This category is limited to the procurement of other advice (including advice on operational matters; advice from expert parties that provide review services not available in-house; advice on matters where a review is necessary but cannot be undertaken due to a conflict of interest; and advice on procurement to ensure value for money) on government priority areas.
269 - 269
Policy Advice
This category is limited to the provision of independent advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government priority areas.
269 - 269

Social Housing Outcomes Support MCA (M37)

The single overarching purpose of this appropriation is to operate the social housing register and associated interventions in such a way as to support more people with the greatest housing need into housing, and to move those who are capable of housing independence closer towards that.
28,866 1,200 30,066
Departmental Output Expenses
     
Services to Support People to Access Accommodation
This category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider.
27,066 1,200 28,266
Non-Departmental Other Expenses
     
Housing Support Package
This category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions.
1,800 - 1,800

Social Sector Trials MCA (M63)

The overarching purpose of this appropriation is the delivery of the Social Sector Trials programme.
- 8,358 8,358
Departmental Output Expenses
     
National Leadership and Administration of Social Sector Trials programme, and Individual-led Social Sector Trials
This category is limited to the administration of the Social Sector Trials by a national programme office, and by government-employed Social Sector Trial Leads in specified locations, leading a cross-agency approach to improve outcomes for target groups.
- 2,985 2,985
Non-Departmental Output Expenses
     
Social Sector Trials - NGO-led Social Sector Teams and Contracted Programmes and Services
This category is limited to the administration of the Social Sector Trials by non-governmental organisations in specified locations, leading a cross-agency approach to improve outcomes for target groups, and the social services purchased by the Social Sector Trials to improve social service delivery and improve outcomes.
- 5,373 5,373

Total Multi-Category Expenses and Capital Expenditure

709,395 8,466 717,861

Total Annual and Permanent Appropriations

24,138,091 176,042 24,314,133

Capital Injection Authorisations#

  2015/16
  Estimates Budget
$000
Supplementary
Estimates Budget
$000
Total Budget
$000
Ministry of Social Development - Capital Injection (M63) 2,300 - 2,300

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2015/16
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 1,881,016 2,739 (12,248) (9,509) 1,871,507
Benefits or Related Expenses 19,543,597 N/A 106,457 106,457 19,650,054
Borrowing Expenses - - - - -
Other Expenses 93,957 3,000 24,021 27,021 120,978
Capital Expenditure 1,910,126 34,337 9,270 43,607 1,953,733
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 707,595 3,093 5,373 8,466 716,061
Other Expenses 1,800 - - - 1,800
Capital Expenditure - N/A - - -

Total Appropriations

24,138,091 43,169 132,873 176,042 24,314,133

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 11,339 N/A (384) (384) 10,955
Capital Receipts 691,912 N/A 7,524 7,524 699,436

Total Crown Revenue and Capital Receipts

703,251 N/A 7,140 7,140 710,391

1.4 - Reconciliation of Changes in Appropriation Structure

The tables below show the changes in appropriation structure relating to:

  • the establishment of the Emergency Housing Response appropriation
  • the establishment of the Social Sector Trials MCA
  • the establishment of the Social Housing appropriation Support for the Provision of Social Housing Supply, and
  • the transfer of the Property Management Centre of Expertise to Vote Business, Science and Innovation.

Establishment of new emergency housing appropriation, which broadens the scope for emergency housing provision and provides flexibility to respond to emergency housing demand in high needs areas such as Christchurch and Auckland.

Estimates 2015/16
(Estimates)
$000
Supplementary Estimates
(Changes during the year)
Amount
Moved
$000
New Structure 2015/16
(Restated)
$000

Vote Social Development

         

Non-Departmental Output Expenses

         
Short-term Housing in Canterbury 2,738 Transferred to Emergency Housing Response (2,738)   -
       

Non-Departmental Output Expenses

 
    Transferred from Short-term Housing in Canterbury 2,738 Emergency Housing Response 2,738
Total changes in appropriations 2,738   -   2,738

Establishment of the Social Sector Trials MCA from the existing Social Sector Trials appropriations to increase flexibility for the allocation of resources for the Social Sector Trials.

Estimates 2015/16
(Estimates)
$000
Supplementary Estimates
(Changes during the year)
Amount
Moved
$000
New Structure 2015/16
(Restated)
$000

Vote Social Development

         

Departmental Output Expenses

         
Administration of Trialling New Approaches to Social Sector Change 4,120 Transferred to National Leadership and Administration of Social Sector Trials Programme, and Individual-led Social Sector Trials (4,120)   -

Non-Departmental Output Expenses

         
Trialling New Approaches to Social Sector Change 4,917 Transferred to NGO-led Social Sector Teams and Contracted Programmes and Services (4,917)   -
       

Multi-Category Expenses and Capital Expenditure: Social Sector Trials MCA

 
       

Departmental Output Expenses

 
    Transferred from Administration of Trialling New Approaches to Social Sector Change 4,120 National Leadership and Administration of Social Sector Trials Programme, and Individual-led Social Sector Trials 4,120
       

Non-Departmental Output Expenses

 
    Transferred from Trialling New Approaches to Social Sector Change 4,917 NGO-led Social Sector Teams and Contracted Programmes and Services 4,917
Total changes in appropriations 9,037   -   9,037

Establish the new appropriation Support for the Provision of Social Housing Supply, to provide support to secure access to properties for social housing providers to use for social housing tenancies.

Estimates 2015/16
(Estimates)
$000
Supplementary Estimates
(Changes during the year)
Amount
Moved
$000
New Structure 2015/16
(Restated)
$000

Vote Social Development

         

Non-Departmental Output Expenses

         
Part Payment of Rent to Social Housing Providers 774,141 Transferred to Support for the Provision of Social Housing Supply (20,000) Part Payment of Rent to Social Housing Providers 754,141
       

Non-Departmental Other Expenses

 
    Transferred from Part Payment of Rent to Social Housing Providers 20,000 Support for the Provision of Social Housing Supply 20,000
Total changes in appropriations 774,141   -   774,141

Transfer of the Property Management Centre of Expertise from the Ministry of Social Development to the Ministry of Business, Innovation and Employment from 1 April 2016.

Estimates 2015/16
(Estimates)
$000
Supplementary Estimates
(Changes during the year)
Amount
Changed
$000
2015/16 Total Budget 2015/16
(Restated)
$000

Vote Social Development

         

Departmental Output Expenses

         
Property Management Centre of Expertise 2,755 Property Management Centre of Expertise (Funding increases during 2015/16) 5,577    
    Transferred to Vote Business, Science and Innovation (3,496) Property Management Centre of Expertise (Final Budgeted) 4,836
       

Vote Business, Science and Innovation

 
       

Departmental Output Expenses

 
    Transferred from Vote Social Development 3,496 State Services: Property Management within the State Sector 3,496
Total changes in appropriations 2,755   5,577   8,332

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

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Administration of Trialling New Approaches to Social Sector Change (M63)

Scope of Appropriation

This appropriation is limited to the administration by committed individuals of the delivery of social sector services as part of the Social Sector Trials in specified locations.

Reasons for Change in Appropriation

This appropriation has transferred in 2015/16 to the new Social Sector Trials MCA.

Care and Protection Services (M63)

Scope of Appropriation

This appropriation is limited to social work services, both statutory and informal, that protect and assist children and young people who are in need of care and protection, including education and advice services for the recognition and prevention of child abuse and neglect.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 391,831 4,374 396,205
Revenue from the Crown 390,019 4,374 394,393
Revenue from Others 1,812 - 1,812

Reasons for Change in Appropriation

This appropriation increased by $4.374 million to $396.205 million for 2015/16 due to:

  • Historical claims of abuse expense transfer of $2.459 million from 2014/15 to 2015/16
  • Actuarial valuation of long-term cost of child in care, retention of underspend of $1.500 million from 2014/15 to 2015/16
  • Reprioritisation of baselines to meet changes in cost drivers $1.350 million.

The above offset by:

  • baseline contributions returned to the Crown of $935,000 for the Budget 2015 across agencies system initiatives.

Children's Action Plan (M63)

Scope of Appropriation

This appropriation is limited to activities necessary to implement the Children's Action Plan.

Reasons for Change in Appropriation

This appropriation has decreased by $500,000 to $12.894 million in 2015/16 due to a transfer of $500,000 to 2016/17 to partly fund the continuation of the Children's Action Plan for the next two financial years.

Data, Analytics and Evidence Services (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation decreased by $40,000 to $11.380 million in 2015/16 due to a Fiscally Neutral Adjustment to Vote Statistics of $40,000 for a New Zealand Data Futures Partnership.

Designing and Implementing Social Investment (M31)

Scope of Appropriation

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

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation - 2,000 2,000
Revenue from the Crown - 2,000 2,000
Revenue from Others - - -

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of initial tools and infrastructure by the Social Investment Unit required to enable a collective social investment approach allowing investment in what works to improve the lives of New Zealanders, creating lasting change.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

The satisfaction rating given by lead Ministers for the quality and timeliness of advice, as per the Common Satisfaction Survey will be at least

7.0 7.0 7.0

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This is a new appropriation for 2015/16 with funding for the Social Sector Investment Change Programme.

Income Support and Assistance to Seniors (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation decreased by $120,000 to $36.902 million in 2015/16 due to baseline contributions returned to the Crown of $120,000 for the Budget 2015 across agencies system initiatives.

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

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation decreased by $160,000 to $49.350 million in 2015/16 due to baseline contributions returned to the Crown of $160,000 for the Budget 2015 across agencies system initiatives.

Investing in Communities (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has decreased by $445,000 to $45.786 million in 2015/16 due to:

  • a fiscally neutral expense transfer of $50,000 to Vote Education for a Home Interaction Programme for Parents and Youngsters
  • baseline contributions returned to the Crown of $145,000 for the Budget 2015 across agencies system initiatives
  • reprioritisation of baselines to meet changes in cost drivers in 2015/16 $250,000.

Management of Service Cards (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has decreased by $350,000 to $6.279 million due to a reprioritisation of baselines to meet changes in cost drivers in 2015/16.

Planning, Correspondence and Monitoring (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has increased by $600,000 due to a reprioritisation of baselines to meet changes in cost drivers in 2015/16.

Policy Advice (M63)

Scope of Appropriation

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

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 19,572 1,150 20,722
Revenue from the Crown 19,572 - 19,572
Revenue from Others - 1,150 1,150

Reasons for Change in Appropriation

This appropriation increased by $1.150 million to $20.722 million in 2015/16 due to an increase in funding from revenue from Others for the Social Sector Investment Programme.

Promoting Positive Outcomes for Disabled People (M23)

Scope of Appropriation

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

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,745 34 5,779
Revenue from the Crown 5,745 - 5,745
Revenue from Others - 34 34

Reasons for Change in Appropriation

This appropriation increased by $34,000 to $5.779 million in 2015/16 due to an increase in funding from revenue from Others for Enabling Good Lives Christchurch.

Property Management Centre of Expertise (M66)

Scope of Appropriation

This appropriation is limited to the operation of the Property Management Centre of Expertise, to provide leadership, guidance and support, monitoring and brokerage in respect of property management within the State Sector.

Expenses and Revenue

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 2,755 2,081 4,836
Revenue from the Crown 2,500 (67) 2,433
Revenue from Others 255 2,148 2,403

Reasons for Change in Appropriation

This appropriation increased by $2.081 million to $4.836 million in 2015/16 due to:

  • an increase in revenue other funding of $5.100 million reflecting an increase in project activity undertaken on behalf of agencies for business cases and associated development agreements
  • transfer of funding of $477,000 from 2014/15 to 2015/16 for the Canterbury Integrated Government Accommodation project.

The above offset by:

  • the transfer of the Property Management Centre of Expertise function to the Ministry of Business, Innovation and Employment from 1 April 2016 resulting in a funding transfer of $3.496 million.

Youth Justice Services (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation decreased by $1.765 million to $130.876 million in 2015/16 due to:

  • baseline contributions returned to the Crown for the Budget 2015 across agencies system initiatives $415,000
  • reprioritisation of baselines to meet changes in cost drivers in 2015/16 $1.350 million.

2.2 - Departmental Other Expenses

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

Scope of Appropriation

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

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 3,000 3,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of a new operating model to support the system-wide reform of services provided to New Zealand's vulnerable children, young people and their families.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

Report back to Social Cabinet Committee, Minister for Social Development and the Ministerial Oversight Group

     

Report back on detailed transformation programme for first 12-18 months by July 2016

Achieved Achieved Achieved

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This is a new appropriation in 2015/16, with funding for the design and implementation of system-wide reform of services provided to New Zealand's vulnerable children, young people and their families.

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Social Development - Capital Expenditure PLA (M63)

Scope of Appropriation

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

Capital Expenditure

  2015/16
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 53,652 887 54,539
Intangibles 32,849 33,450 66,299
Other - - -

Total Appropriation

86,501 34,337 120,838

Reasons for Change in Appropriation

This appropriation increased by $34.337 million to $120.838 million in 2015/16, reflecting the Ministry's revised capital programme of work, mainly information technology and infrastructure projects.

Capital Injections and Movements in Departmental Net Assets

Ministry of Social Development

Details of Net Asset Schedule 2015/16
Main Estimates Projections
$000
2015/16
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2015/16
Opening Balance 327,041 327,041 Supplementary Estimates opening balance reflects the audited results as at 30 June 2015.
Capital Injections 2,300 2,300 Implementing the Children's Action Plan
Capital Withdrawals - (2,100) Transfer of the Property Management Centre of Expertise to the Ministry of Business, Innovation and Employment from 1 April 2016.
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

329,341 327,241  

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Community Participation Services (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has increased by $973,000 to $78.441 million in 2015/16 due to a funding transfer from Vote Health for the Waikato Enabling Good Lives demonstration.

Emergency Housing Response (M37)

Scope of Appropriation

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

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 2,738 2,738

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved support for eligible families and individuals across New Zealand with an emergency housing need.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

The number of emergency housing places will be no less than

120 120 120

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This is a new appropriation for 2015/16, funded from a fiscally neutral adjustment from the Non-departmental output expense, Short-term Housing in Canterbury. The appropriation was established to broaden the scope of the provision of emergency housing and provide flexibility to respond to emergency housing demand in high needs areas.

Families Commission (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has increased by $2.196 million to $12.331 million in 2015/16. This is due to the draw down from the contingency fund for managing the Growing Up in New Zealand study contract.

Part Payment of Rent to Social Housing Providers (M37)

Scope of Appropriation

This appropriation is limited to the part purchase of tenancies from social housing providers.

Reasons for Change in Appropriation

This appropriation has decreased by $8 million to $766.141 million in 2015/16 due to:

  • fiscally neutral transfers totalling $17.500 million to the Non-departmental other expense appropriation, Support for the Provision of Social Housing Supply, to assist with the development of new social housing supply
  • a fiscally neutral transfer of $3.700 million as follows: $2.500 million to the Non-departmental other expense appropriation, Support for the Provision of Social Housing Supply, to support the provision of new social housing supply and $1.200 million to the Social Housing Outcomes Support MCA to support the Auckland Social Housing Supply Team.

The above offset by:

  • a transfer from 2014/15 to 2015/16 of $13.200 million to apply towards 300 additional places in Auckland in 2015/16.

Strong Families and Connected Communities (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has decreased by $2.050 million to $113.751 million in 2015/16 due to a transfer to Vote Maori Development of Te Punanga Haumaru funding to support Whanau Ora.

Trialling New Approaches to Social Sector Change (M63)

Scope of Appropriation

This appropriation is limited to the delivery of social sector services as part of the Social Sector Trials in specified locations and, in those locations where that delivery is led by Non-Government Organisations, to the administration of that delivery.

Reasons for Change in Appropriation

This appropriation transferred in 2015/16 to the new Social Sector Trials MCA.

Youth Development Partnership Fund (M77)

Scope of Appropriation

This appropriation is limited to the provision of one-off partial funding, to assist Territorial Authorities to respond to the emerging needs and opportunities for young people.

Reasons for Change in Appropriation

This appropriation decreased by $450,000 to $439,000 in 2015/16 due to a transfer of $450,000 to the new Partnering for Youth Development MCA in 2016/17. This is to implement the new direction and priorities for youth development, including establishing the Partnership Fund and providing for a social record of youth participation.

3.2 - Non-Departmental Benefits or Related Expenses

Accommodation Assistance (M37)

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.

Reasons for Change in Appropriation

This appropriation increased by $3.797 million to $1,140.479 million in 2015/16 due to:

  • $5.500 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $2.477 million for a higher number of recipients
  • $115,000 for the impact of policy in response to the Syrian Refugee Crisis.

Partly offsetting the above factors is:

  • $4.295 million for a lower average payment rate.

Benefits Paid in Australia (M63)

Scope of Appropriation

This appropriation is limited to reimbursement to the Australian Government for income support assistance provided to New Zealanders eligible under the 1994 Reciprocal Agreement pursuant to the Social Welfare (Reciprocity with Australia) Order 2002.

Reasons for Change in Appropriation

This appropriation increased by $153,000 to $39.941 million in 2015/16 due a lower-than-expected exchange rate.

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.

Reasons for Change in Appropriation

This appropriation increased by $1.702 million to $194.585 million in 2015/16 due to:

  • $8 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $165,000 for a higher average payment rate (before inflation adjustments).

Partly offsetting the above factors are:

  • $6.370 million for a lower number of recipients
  • $93,000 for lower-than-expected inflation adjustments.

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.

Reasons for Change in Appropriation

This appropriation decreased by $263,000 to $378.656 million in 2015/16 due to:

  • $1.384 million for a lower number of recipients
  • $821,000 for a lower average payment rate (before inflation adjustments)
  • $59,000 for lower-than-expected inflation adjustments.

Partly offsetting the above factors are:

  • $1.800 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $201,000 for policy resulting in the automatic raising of income thresholds for eligibility for Disability Allowance in line with changes to New Zealand Superannuation and Veterans' Pension payment rates.

Hardship Assistance (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $16.677 million to $293.849 million in 2015/16 due to:

  • $8.984 million for a higher number of recipients
  • $5.600 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $1.974 million for a higher average payment rate (before inflation adjustments)
  • $507,000 for the impact of policy predominantly reflecting the response to the Syrian Refugee Crisis.

Partly offsetting the above factors are:

  • $382,000 mainly reflecting changes in funeral grants expenditure
  • $6,000 for lower-than-expected inflation adjustments.

Jobseeker Support and Emergency Benefit (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $77.411 million to $1,692.956 million in 2015/16 due to:

  • $54.459 million for a higher number of recipients
  • $18.700 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $16.658 million for a higher average payment rate (before inflation adjustments)
  • $221,000 for the impact of policy in response to the Syrian Refugee Crisis
  • $34,000 for lower-than-expected overseas pension recoveries.

Partly offsetting the above factors are:

  • $11.467 million for higher-than-expected debt establishments
  • $1.194 million for lower-than-expected inflation adjustments.

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.

Reasons for Change in Appropriation

This appropriation increased by $30.739 million to $12,287.231 million in 2015/16 due to:

  • $33.909 million for a higher-than-expected wage adjustment
  • $26.7 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $4.432 million for lower-than-expected debt establishments
  • $2.005 million for policy reflecting the impact of the reduction in the ACC levy for earners.

Partly offsetting these factors are:

  • $16.438 million for higher-than-expected overseas pension recoveries
  • $15.162 million for a lower average payment rate (before inflation and wage adjustments)
  • $4.707 million for a lower number of recipients.

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

Scope of Appropriation

This appropriation is limited to the 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 that 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 and in relevant Welfare Programmes pursuant to it.

Reasons for Change in Appropriation

This appropriation increased by $7.440 million to $144.165 million in 2015/16 due to:

  • $2.823 million for a higher average payment rate (before inflation adjustments)
  • $2.533 million for a higher number of recipients
  • $2.100 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $75,000 for lower-than-expected debt establishments.

Partly offsetting the above factors is:

  • $91,000 for lower-than-expected inflation adjustments.

Sole Parent Support (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation decreased by $23.553 million to $1,163.217 million in 2015/16 due to:

  • $41.480 million for a lower number of recipients
  • $1.559 million for higher-than-expected debt establishments
  • $859,000 for lower-than-expected inflation adjustments.

Partly offsetting the above factors are:

  • $12.500 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $7.819 million for a higher average payment rate (before inflation adjustments)
  • $25,000 for the impact of policy in response to the Syrian Refugee Crisis
  • $1,000 for lower-than-expected overseas pension recoveries.

Special Circumstance Assistance (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $2.280 million to $14.399 million in 2015/16 due to:

  • $3 million for the supplementary estimates add-on to reduce the likelihood of an overspend.

Partly offsetting the above factor are:

  • $584,000 for a lower number of recipients
  • $119,000 for a lower average rate of payment (before inflation adjustments)
  • $17,000 for lower-than-expected inflation adjustments.

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 dependants in accordance with the criteria established by delegated legislation issued under the Social Security Act 1964.

Reasons for Change in Appropriation

This appropriation decreased by $14.896 million to $514.334 million in 2015/16 due to:

  • $28.479 million for a lower number of recipients
  • $3.969 million for a lower average rate of payment (before inflation adjustments)
  • $448,000 for lower-than-expected inflation adjustments.

Partly offsetting the above factors is:

  • $18 million for the supplementary estimates add-on to reduce the likelihood of an overspend.

Supported Living Payment (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $12.523 million to $1,532.017 million in 2015/16 due to:

  • $11.526 million for a higher average rate of payment (before inflation adjustments)
  • $8.100 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $249,000 for lower-than-expected overseas pension recoveries
  • $40,000 for the impact of policy in response to the Syrian Refugee Crisis.

Partly offsetting the above factors are:

  • $5.637 million for a lower number of recipients
  • $1.103 million for lower-than-expected inflation adjustments
  • $652,000 for higher-than expected debt establishments.

Veterans' Pension (M75)

Scope of Appropriation

This appropriation is limited to the provision of income support for ex-service people who served in a declared war or emergency and 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 fulfil the New Zealand citizenship and residency requirements as set out in the War Pensions Act 1954.

Reasons for Change in Appropriation

This appropriation decreased by $5.596 million to $187.844 million in 2015/16 due to:

  • $7.200 million for a lower number of recipients
  • $545,000 for a lower average payment rate (before inflation and wage adjustments)
  • $210,000 for higher-than-expected overseas pension recoveries
  • $1,000 for lower-than-expected inflation adjustments.

Partly offsetting the above factors are:

  • $1.800 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $485,000 for higher-than-expected wage adjustments
  • $47,000 for lower-than-expected debt establishments
  • $28,000 for reduction in ACC earner's levy.

Work Assistance (M63)

Scope of Appropriation

This appropriation is limited to the provision of payments to beneficiaries, low income earners, students and ex beneficiaries, who meet certain criteria set out in delegated legislation under the Social Security Act 1964, to assist them to obtain and maintain employment.

Reasons for Change in Appropriation

This appropriation increased by $430,000 to $4.066 million in 2015/16 due to:

  • $449,000 for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $117,000 for an increase in the demand for Seasonal Work Assistance.

Partly offsetting the above factors are:

  • $105,000 for a decrease in the demand for Work Bonus Payments
  • $28,000 for a decrease in the demand for Employment Transition Assistance
  • $3,000 for lower-than-expected inflation adjustments.

Youth Payment and Young Parent Payment (M63)

Scope of Appropriation

This appropriation is limited to the provision of income support and incentive payments for people aged 16, 17 or 18 years who are currently unemployed but are in or available for full-time education, training or work-based learning and where it is inappropriate for them to obtain financial support from their parents, and 16, 17, 18 and 19 year old parents who are currently unemployed but are in or available for full-time education, training or work-based learning. Paid in accordance with criteria set out in the Social Security Act 1964 and delegated legislation issued under that Act.

Reasons for Change in Appropriation

This appropriation decreased by $2.387 million to $42.635 million in 2015/16 due to:

  • $2.870 million for a lower number of recipients
  • $1.211 million for a lower average payment rate (before inflation adjustments)
  • $26,000 for lower-than-expected inflation adjustments.

Partly offsetting the above factors are:

  • $1.600 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $120,000 for lower-than-expected debt establishments.

3.4 - Non-Departmental Other Expenses

Debt Write-downs (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation has increased by $4.021 million to $75.825 million in 2015/16. This increase relates to a change in the level of outstanding debt and the rates used to calculate the debt write-down provision.

Support for the Provision of Social Housing Supply (M37)

Scope of Appropriation

This appropriation is limited to providing support to secure access to properties for social housing providers to use for social housing tenancies.

Expenses

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 20,000 20,000

What is Intended to be Achieved with this Appropriation

This category is intended to achieve an increase in social housing places through the provision of payments to secure access to properties for social housing providers.

How Performance will be Assessed and End of Year Reporting Requirements

  2015/16
Performance Measures Estimates
Standard
Supplementary
Estimates
Standard
Total
Standard

The number of social housing places contracted from community housing providers will be no less than

400 400 400

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This is a new appropriation for 2015/16. The appropriation has been funded by fiscally neutral transfers from the Non-departmental output expense, Part Payment of Rent to Social Housing Providers of $20 million to assist with the provision of social housing supply.

3.5 - Non-Departmental Capital Expenditure

Recoverable Assistance (M63)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $6.997 million to $150.159 million in 2015/16 due to:

  • $4 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $3.694 million for a higher average payment rate.

Partly offsetting the above factors is:

  • $697,000 for a lower number of grants.

Student Loans (M57)

Scope of Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $2.273 million to $1,682.736 million in 2015/16 due to:

  • $45 million for the supplementary estimates add-on to reduce the likelihood of an overspend
  • $14.797 million for a higher average payment rate (before inflation adjustments)
  • $82,000 for policy supporting students to complete long undergraduate programmes.

Largely offsetting the above factors are:

  • $57.388 million for a lower number of recipients
  • $218,000 for lower-than-expected inflation adjustments.

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

Multi-Category Expenses and Capital Expenditure

Improved Employment and Social Outcomes Support (M63)

Overarching Purpose Statement

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

Scope of Appropriation

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

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

679,991 (1,092) 678,899

Departmental Output Expenses

     
Administering Income Support 340,176 (32,705) 307,471
Improving Employment Outcomes 269,382 26,337 295,719
Improving Work Readiness Outcomes 70,433 5,276 75,709

Funding for Departmental Output Expenses

     

Revenue from the Crown

677,391 (1,092) 676,299
Administering Income Support 337,576 (32,705) 304,871
Improving Employment Outcomes 269,382 26,337 295,719
Improving Work Readiness Outcomes 70,433 5,276 75,709

Revenue from Others

2,600 - 2,600
Administering Income Support 2,600 - 2,600

Reasons for Change in Appropriation

This appropriation has decreased by $1.092 million to $678.899 million due to:

  • baseline contributions returned to the Crown of $1.426 million for the Budget 2015 across agencies system initiatives.

The above offset by:

  • an increase in funding of $334,000 for the response to the Syrian Refugee Crisis implementation.

Social Housing Outcomes Support (M37)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to operate the social housing register and associated interventions in such a way as to support more people with the greatest housing need into housing, and to move those who are capable of housing independence closer towards that.

Scope of Appropriation

Departmental Output Expenses

Services to Support People to Access Accommodation
This category is limited to assessing and reviewing eligibility for social housing and income related rent, social housing register management and the accurate and timely payment of income related rent subsidies to the social housing provider.

Non-Departmental Other Expenses

Housing Support Package
This category is limited to the provision of incentives, products and services to help households with lower housing need who are in, or seeking social housing, to access or retain alternative housing solutions.

Reasons for Change in Appropriation

This appropriation has increased by $1.200 million to $30.066 million in 2015/16 due to a fiscally neutral adjustment from the Non-departmental output expense, Part Payment of Rent to Social Housing Providers to support the Auckland Social Housing Supply Team.

Social Sector Trials (M63)

Overarching Purpose Statement

The overarching purpose of this appropriation is the delivery of the Social Sector Trials programme.

Scope of Appropriation

Departmental Output Expenses

National Leadership and Administration of Social Sector Trials programme, and Individual-led Social Sector Trials
This category is limited to the administration of the Social Sector Trials by a national programme office, and by government-employed Social Sector Trial Leads in specified locations, leading a cross-agency approach to improve outcomes for target groups.

Non-Departmental Output Expenses

Social Sector Trials - NGO-led Social Sector Teams and Contracted Programmes and Services
This category is limited to the administration of the Social Sector Trials by non-governmental organisations in specified locations, leading a cross-agency approach to improve outcomes for target groups, and the social services purchased by the Social Sector Trials to improve social service delivery and improve outcomes.

Expenses, Revenue and Capital Expenditure

  2015/16
  Estimates
$000
Supplementary Estimates
$000
Total
$000

Total Appropriation

- 8,358 8,358

Departmental Output Expenses

     
National Leadership and Administration of Social Sector Trials programme, and Individual-led Social Sector Trials - 2,985 2,985

Non-Departmental Output Expenses

     
Social Sector Trials - NGO-led Social Sector Teams and Contracted Programmes and Services - 5,373 5,373

Funding for Departmental Output Expenses

     

Revenue from the Crown

- 2,985 2,985
National Leadership and Administration of Social Sector Trials programme, and Individual-led Social Sector Trials - 2,985 2,985

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve innovative cross-agency responses to tackle social issues among targeted groups.

How Performance will be Assessed for this Appropriation

  2015/16
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

The percentage of Social Sector Trials that deliver on their action plan commitments is no less than

95% 95% 95%

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

  2015/16
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Departmental Output Expenses

     

National Leadership and Administration of Social Sector Trials programme, and Individual-led Social Sector Trials

     

This category is intended to achieve innovative cross-agency responses to tackle social issues among targeted groups in specified locations.

     

The percentage of commitments in the action plan that have been delivered will be no less than

95% 95% 95%

Non-Departmental Output Expenses

     

Social Sector Trials - NGO-led Social Sector Teams and Contracted Programmes and Services

     

This category is intended to achieve innovative cross-agency responses to tackle social issues among targeted groups in specified locations, and improved social services for targeted groups in order to improve outcomes.

     

The percentage of commitments in the action plan that have been delivered will be no less than

95% 95% 95%

The percentage of services provided in accordance with relevant guidelines and standards will be no less than

100% 100% 100%

The percentage of payments made to providers in accordance with contract requirements will be no less than

90% 100% 100%

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This is a new appropriation for 2015/16, funded from a fiscally neutral adjustment from the Departmental output expense, Administration of Trialling New Approaches to Social Sector Change and the Non-departmental output expense, Trialling New Approaches to Social Sector Change.