Vote Social Development Performance Information on

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					Performance Information
for Appropriations

Vote Social Development




MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Disability Issues (M23), 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




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VOTE SOCIAL DEVELOPMENT




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 2010/11 financial year covering the following:
• a total of over $467 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 over $570 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 nearly $79 million on specialised services, including services for students, seniors and
  administration of community services and SuperGold cards

• a total of nearly $48 million on social policy advice and crown entity monitoring

• a total of over $43 million on leadership and coordination services to support and strengthen families,
  communities and whānau

• a total of over $292 million on services from other organisations
• a total of nearly $16 million purchasing services from the Children's Commissioner, the Retirement
  Commissioner, and the Families Commission

• a total of $947 million on debt write-downs, and a series of assistance programmes

• a total of $8,822 million on payments of New Zealand Superannuation
• a total of $4,878 million on payments for the working age benefits - Domestic Purposes,
  Unemployment, Sickness, Invalid's and Widow's benefits

• a total of $1,957 million on payments for assistance with expenses related to accommodation,
  disability, hardship and entering or remaining in the workforce

• a total of $732 million on payments to assist people to obtain a qualification or independent youth to
  continue education/training or obtain work

• a total of $511 million on other forms of financial assistance such as childcare, care of unsupported
  children, payments to Australia and special circumstances

• a total of $1,616 million on payments for student loans, and

• a total of $179 million on advances of benefits and other recoverable payments to assist with hardship.
The Minister for Disability Issues is responsible for the appropriation in the Vote for the 2010/11 financial
year covering the following:

• a total of just over $1 million on promoting positive outcomes for disabled people.
Details of these appropriations are set out in Parts 2-6 below.




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Part 1.2 - High-Level Objectives of the Vote

Government Priorities and Outcomes - Links to Appropriations

Government Priorities                      Government Outcomes                          Appropriations

Unrelenting focus on work                  More people get into work and stay in work   Departmental Output Expenses
                                                                                        Collection of Balances Owed by Former
                                                                                        Clients and Non-beneficiaries, Management
                                                                                        of Service Cards (MCOA) - Administration of
                                                                                        Community Services Card output class,
                                                                                        Management of Student Support, Policy
                                                                                        Advice and Support to Ministers (MCOA) -
                                                                                        Social Policy Advice output class, Promoting
                                                                                        Positive Outcomes for Disabled People,
                                                                                        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, 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,
                                                                                        Family Start/NGO Awards, Hardship
                                                                                        Assistance, Invalid's Benefit, Redundancy
                                                                                        Assistance, Sickness Benefit, Special
                                                                                        Circumstance Assistance, Student
                                                                                        Allowances, Study Scholarships and Awards,
                                                                                        Transition to Work, Unemployment Benefit
                                                                                        and Emergency Benefit, and Widow's Benefit.
                                                                                        Non-Departmental Other Expenses
                                                                                        Debt Write-downs, Employment Assistance,
                                                                                        Job Support Scheme, Mainstream Supported
                                                                                        Employment Programme, and Out of School
                                                                                        Care Programmes.
                                                                                        Departmental Capital Expenditure
                                                                                        Ministry of Social Development - Capital
                                                                                        Expenditure PLA.
                                                                                        Non-Departmental Capital Expenditure
                                                                                        Recoverable Assistance, and Student Loans.




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VOTE SOCIAL DEVELOPMENT




Government Priorities                     Government Outcomes                      Appropriations

Protecting our children                   More children are safe                   Departmental Output Expenses
                                                                                   Adoption Services, Care and Protection
                                                                                   Services, Family and Community Services,
                                                                                   and Policy Advice and Support to Ministers
                                                                                   (MCOA) - Social Policy Advice output class
                                                                                   and Crown Entity Monitoring output class,
                                                                                   and Prevention Services.
                                                                                   Non-Departmental Output Expenses
                                                                                   Assistance to Disadvantaged Persons,
                                                                                   Children's Commissioner, Counselling and
                                                                                   Rehabilitation Services, Education and
                                                                                   Prevention Services, Families Commission,
                                                                                   Family Wellbeing Services, and
                                                                                   Strengthening Providers and Communities.
                                                                                   Non-Departmental Benefits and Other
                                                                                   Unrequited Expenses
                                                                                   Childcare Assistance, Disability Assistance,
                                                                                   Family Start/NGO Awards, and
                                                                                   Orphan's/Unsupported Child's Benefit.
                                                                                   Non-Departmental Other Expenses
                                                                                   Out of School Care Programmes.
                                                                                   Departmental Capital Expenditure
                                                                                   Ministry of Social Development - Capital
                                                                                   Expenditure PLA
Opportunities for youth                   More young people stay on track          Departmental Output Expenses
                                                                                   Family and Community Services,
                                                                                   Management of Student Support, Policy
                                                                                   Advice and Support to Ministers (MCOA) -
                                                                                   Social Policy Advice output class and Crown
                                                                                   Entity Monitoring output class, Tailored Sets
                                                                                   of Services to Help People into Work or
                                                                                   Achieve Independence, and Vocational Skills
                                                                                   Training.
                                                                                   Non-Departmental Output Expenses
                                                                                   Assistance to Disadvantaged Persons,
                                                                                   Children's Commissioner, Families
                                                                                   Commission, Family Wellbeing Services, Life
                                                                                   Skills and Employment-Related Training,
                                                                                   Strengthening Providers and Communities,
                                                                                   Student Placement Services, and Vocational
                                                                                   Services for People with Disabilities.
                                                                                   Non-Departmental Benefits and Other
                                                                                   Unrequited Expenses
                                                                                   Accommodation Assistance, Benefits Paid in
                                                                                   Australia, Disability Assistance, 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.
                                                                                   Departmental Capital Expenditure
                                                                                   Ministry of Social Development - Capital
                                                                                   Expenditure PLA.
                                                                                   Non-Departmental Capital Expenditure
                                                                                   Recoverable Assistance, and Student Loans.




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Government Priorities                        Government Outcomes                         Appropriations

Opportunities for youth                      Reduced re-offending by young people        Departmental Output Expenses
                                                                                         Family and Community Services,
                                                                                         Management of Student Support, Policy
                                                                                         Advice and Support to Ministers (MCOA) -
                                                                                         Social Policy Advice output class and Crown
                                                                                         Entity Monitoring output class, Tailored Sets
                                                                                         of Services to Help People into Work or
                                                                                         Achieve Independence, Vocational Skills
                                                                                         Training, and Youth Justice Services.
                                                                                         Non-Departmental Output Expenses
                                                                                         Assistance to Disadvantaged Persons,
                                                                                         Children's Commissioner, Counselling and
                                                                                         Rehabilitation Services, Families
                                                                                         Commission, Family Wellbeing Services, Life
                                                                                         Skills and Employment-Related Training,
                                                                                         Strengthening Providers and Communities,
                                                                                         Student Placement Services, and Vocational
                                                                                         Services for People with Disabilities.
                                                                                         Non-Departmental Benefits and Other
                                                                                         Unrequited Expenses
                                                                                         Accommodation Assistance, Benefits Paid in
                                                                                         Australia, Disability Assistance, 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.
                                                                                         Departmental Capital Expenditure
                                                                                         Ministry of Social Development - Capital
                                                                                         Expenditure PLA.
                                                                                         Non-Departmental Capital Expenditure
                                                                                         Recoverable Assistance, and Student Loans.
Support the independence of older people     Improved quality of life for older people   Departmental Output Expenses
                                                                                         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, Invalid's Benefit, New Zealand
                                                                                         Superannuation, Special Circumstance
                                                                                         Assistance, Student Allowances, and
                                                                                         Unemployment Benefit and Emergency
                                                                                         Benefit.
                                                                                         Non-Departmental Other Expenses
                                                                                         Debt Write-downs.
                                                                                         Departmental Capital Expenditure
                                                                                         Ministry of Social Development - Capital
                                                                                         Expenditure PLA.
                                                                                         Non-Departmental Capital Expenditure
                                                                                         Recoverable Assistance.




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VOTE SOCIAL DEVELOPMENT




Government Priorities                     Government Outcomes                      Appropriations

Communities - getting on with it          Communities are better able to support   Departmental Output Expenses
                                          themselves                               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, Policy Advice and Support to Ministers
                                                                                   (MCOA) - Social Policy Advice output class,
                                                                                   Prevention Services, and Promoting Positive
                                                                                   Outcomes for Disabled People, Tailored Sets
                                                                                   of Services to Help People into Work or
                                                                                   Achieve Independence and Youth Justice
                                                                                   Services.
                                                                                   Non-Departmental Output Expenses
                                                                                   Connected Communities, 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, Childcare
                                                                                   Assistance, Family Start/NGO Awards,
                                                                                   Redundancy Assistance, Special
                                                                                   Circumstance Assistance, and Study
                                                                                   Scholarships and Awards.
                                                                                   Departmental Capital Expenditure
                                                                                   Ministry of Social Development - Capital
                                                                                   Expenditure PLA.


The performance measures contained in the Information Supporting the Estimates are the main
measures and standards that demonstrate performance for the significant outputs in each appropriation.

Objectives of the Vote
The Government's overarching priority is economic growth for New Zealand to ensure jobs are available
to give families and individuals security and a good standard of living. We believe that paid work is the
best route to independence and well being for most people. The Government aims to have an active
welfare system that assists people into work as well as alleviating the impact of financial and social
pressures on families in genuine need.
The Government's priorities for the Ministry of Social Development are:
• Unrelenting focus on work.

• A fair system.

• Delivering our services better.

• Protecting our children.
• Opportunities for youth.

• Communities - getting on with it.




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

• more people get into work and stay in work

• more children are safe

• more young people stay on track

• reduced re-offending by young people

• improved quality of life for older people
• communities are better able to support themselves

• ensure value for money in everything we do by running efficient programmes and keeping overhead
  costs low.
The table above maps the Ministry of Social Development's outcomes and appropriations to the
Government's priorities. Most of the Ministry's appropriations contribute to more than one outcome.




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                                                                                                     Part 1.3 - Trends in the Vote
 SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.10




                                                                                                     Summary of Financial Activity

                                                                                                                                                       2005/06     2006/07     2007/08     2008/09         2009/10                         2010/11                    2011/12     2012/13     2013/14

                                                                                                                                                                                                                                                 Non-
                                                                                                                                                                                                                             Departmental Departmental
                                                                                                                                                                                                                  Estimated Transactions Transactions        Total
                                                                                                                                                         Actual      Actual      Actual      Actual   Budgeted        Actual      Budget       Budget      Budget    Estimated   Estimated   Estimated
                                                                                                                                                          $000        $000        $000        $000        $000         $000         $000         $000        $000         $000        $000        $000
                                                                                                     Appropriations

                                                                                                     Output Expenses                                  1,255,523   1,302,499   1,363,119   1,430,951   1,505,084   1,505,084    1,208,094      307,812    1,515,906   1,496,836   1,500,839   1,514,780

                                                                                                     Benefits and Other Unrequited Expenses          12,401,311 12,837,285 13,372,348 14,275,892 15,966,403 15,893,741               N/A   16,900,354 16,900,354 17,615,037 18,148,498 18,795,885

                                                                                                     Borrowing Expenses                                       -           -           -           -           -            -           -             -           -           -           -           -

                                                                                                     Other Expenses                                    451,019     620,740     529,953     647,027     988,768       961,488           -      946,856     946,856     924,390     931,443     936,378

                                                                                                     Capital Expenditure                              1,221,079   1,343,077   1,319,975   1,578,842   1,876,029   1,838,248       75,356    1,795,175    1,870,531   1,888,828   1,901,656   1,920,765

                                                                                                     Intelligence and Security Department Expenses            -           -           -           -           -            -           -          N/A            -           -           -           -
                                                                                                     and Capital Expenditure
                                                                                                     Total Appropriations                            15,328,932 16,103,601 16,585,395 17,932,712 20,336,284 20,198,561         1,283,450   19,950,197 21,233,647 21,925,091 22,482,436 23,167,808

                                                                                                     Crown Revenue and Capital Receipts

                                                                                                     Tax Revenue                                              -           -           -           -           -            -         N/A             -           -           -           -           -

                                                                                                     Non-Tax Revenue                                    50,617      52,872      54,850      74,039      76,503        76,503         N/A       78,260      78,260      78,089      78,039      77,963

                                                                                                     Capital Receipts                                  481,740     501,704     499,615     544,061     585,731       585,731         N/A      613,865     613,865     642,539     662,698     676,356

                                                                                                     Total Crown Revenue and Capital Receipts          532,357     554,576     554,465     618,100     662,234       662,234         N/A      692,125     692,125     720,628     740,737     754,319
                                                                                      VOTE SOCIAL DEVELOPMENT




New Policy Initiatives

                                                                   2009/10     2010/11     2011/12     2012/13     2013/14
                                                                  Budgeted      Budget    Estimated   Estimated   Estimated
Policy Initiative                Appropriation                        $000        $000         $000        $000        $000
Achieving Government's Priorities Childcare Assistance (M 63)            -            -        600         600            600
in Early Childhood Education
                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses
Budget 2010 Tax Package          Special Compensation Payment            -     130,929            -           -              -
                                 for GST Increase (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Care and Protection Services            -         607         810         810            810
                                 (M 63)
                                 Departmental Output Expenses

                                 Invalid's Benefit (M 63)                -      (4,289)     (5,041)     (5,636)     (6,046)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Widow's Benefit (M 63)                  -       (146)        (150)       (148)       (153)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Orphan's/Unsupported Child's            -       2,164       2,278       2,384       2,419
                                 Benefit (M 63)
                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Unemployment Benefit and                -      (2,953)     (2,923)     (2,714)     (2,772)
                                 Emergency Benefit (M 63)
                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 New Zealand Superannuation              -      42,218     178,498     187,929     189,513
                                 (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Domestic Purposes Benefit               -      (7,928)     (8,951)     (9,719)    (10,259)
                                 (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Sickness Benefit (M 63)                 -      (1,603)     (1,647)     (1,672)     (1,702)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Independent Youth Benefit               -         (47)        (48)        (47)           (47)
                                 (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Student Allowances (M 63)               -       (373)      (1,506)     (1,163)       (844)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses




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                                                                  2009/10      2010/11    2011/12     2012/13        2013/14
                                                                 Budgeted       Budget   Estimated   Estimated      Estimated
Policy Initiative               Appropriation                        $000         $000        $000        $000           $000

Budget 2010 Tax Package -       Accommodation Assistance                 -     (2,572)     (8,941)        (8,167)     (8,220)
cont’d                          (M 63)

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Disability Assistance (M 63)             -       6,117       8,686         8,878       9,119

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Hardship Assistance (M 63)               -     (1,062)     (5,127)        (5,473)     (5,651)

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Childcare Assistance (M 63)              -       3,033       4,055         4,215       4,342

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Transition to Work (M 63)                -        386         538            547         559

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Employment Related Training              -        301         333            298         308
                                Assistance (M 63)
                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Debt Write-downs (M 63)                  -      11,600      17,100        17,300      17,500

                                Non-Departmental Other
                                Expenses

                                Student Loans (M 63)                     -      21,200      31,100        31,500      31,900

                                Non-Departmental Capital
                                Expenditure

Children's Health Camps         Family Wellbeing Services                -       1,000       1,000         1,000       1,000
                                (M 63)
                                Non-Departmental Output
                                Expenses

                                Strong Families (M 63)               1,000           -           -              -           -

                                Non-Departmental Output
                                Expenses

Community Response              Strong Families (M 63)              19,666           -           -              -           -
Contingency Drawdown

                                Non-Departmental Output
                                Expenses
Community Response Model        Family and Community                     -       5,128       5,628         5,828       7,098
NGO Quality Services Fund       Services (M 63)

                                Departmental Output Expenses

                                Strong Families (M 63)                   -       4,629      13,995        20,565      27,615

                                Non-Departmental Output
                                Expenses




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                                                                    2009/10      2010/11     2011/12     2012/13     2013/14
                                                                   Budgeted       Budget    Estimated   Estimated   Estimated
Policy Initiative                 Appropriation                        $000         $000         $000        $000        $000
Teen Parents Programme of         Strong Families (M 63)                    -      1,402       2,416       2,416       2,416
Action
                                  Non-Departmental Output
                                  Expenses
                                  Family Wellbeing Services                 -        893       1,786       1,786       1,786
                                  (M 63)

                                  Non-Departmental Output
                                  Expenses
Early Childhood Education:        Childcare Assistance (M 63)               -        (51)       (125)       (129)       (133)
Budget Decisions
                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses
Early Childhood Education:        Childcare Assistance (M 63)               -     (2,186)     (2,761)     (2,839)     (2,839)
Funding Rates and Policy
Changes                           Non-Departmental Benefits and
                                  Other Unrequited Expenses
Early Years Service Hubs          Strong Families (M 63)                    -        524         524         524            524

                                  Non-Departmental Output
                                  Expenses
Employment Initiatives            Employment Assistance (M 63)              -     31,840            -           -              -

                                  Non-Departmental Other
                                  Expenses
                                  Job Support Scheme (M 63)           (8,400)     (4,200)           -           -              -

                                  Non-Departmental Other
                                  Expenses

                                  Unemployment Benefit and                  -    (11,429)           -           -              -
                                  Emergency Benefit (M 63)
                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses

Expansion of the Settling In      Family and Community                      -        444         418         418               -
Programme                         Services (M 63)
                                  Departmental Output Expenses

                                  Connected Communities (M 63)              -        556         582         582               -

                                  Non-Departmental Output
                                  Expenses

Family Violence Whānau Ora        Strong Families (M 63)                 879         859         859         859            859
Fund
                                  Non-Departmental Output
                                  Expenses

                                  Connected Communities (M 63)         (721)       (721)        (721)       (721)       (721)

                                  Non-Departmental Output
                                  Expenses

                                  Family and Community                   (98)        (78)        (78)        (78)           (78)
                                  Services (M 63)
                                  Departmental Output Expenses




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                                                                   2009/10     2010/11    2011/12     2012/13        2013/14
                                                                  Budgeted      Budget   Estimated   Estimated      Estimated
Policy Initiative               Appropriation                         $000        $000        $000        $000           $000

Family Violence Whānau Ora      Policy Advice and Support to
Fund - cont’d                   Ministers (M 63)

                                •   Social Policy Advice Output       (60)        (60)        (60)           (60)        (60)
                                    Class

                                Departmental Output Expenses

Fresh Start for Young People    Strong Families (M 63)               1,500       3,000       3,000         3,000       3,000

                                Non-Departmental Output
                                Expenses
                                Youth Justice Services (M 63)         (75)     (3,000)     (3,000)        (3,000)     (3,000)

                                Departmental Output Expenses

Future Focus                    Childcare Assistance (M 63)              -     (1,124)    (10,239)    (17,125)       (24,182)

                                Non-Departmental Benefits and
                                Other Unrequited Expenses
                                Disability Assistance (M 63)             -         60          60             60          60

                                Non-Departmental Benefits and
                                Other Unrequited Expenses
                                Domestic Purposes Benefit                -       6,334       8,504         8,522       8,534
                                (M 63)

                                Non-Departmental Benefits and
                                Other Unrequited Expenses
                                Hardship Assistance (M 63)               -       (536)       (827)         (905)      (1,028)

                                Non-Departmental Benefits and
                                Other Unrequited Expenses
                                Invalid's Benefit (M 63)                 -       4,066       5,503         5,563       5,625

                                Non-Departmental Benefits and
                                Other Unrequited Expenses
                                New Zealand Superannuation               -       1,620       2,238         2,328       2,412
                                (M 63)

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

                                Widow's Benefit (M 63)                   -        694         875            824         774

                                Non-Departmental Benefits and
                                Other Unrequited Expenses

Future Focus - Study Support    Debt Write-downs (M 63)                  -        404         710            724         724

                                Non-Departmental Other
                                Expenses

                                Recoverable Assistance (M 63)            -       1,010       1,776         1,809       1,809

                                Non-Departmental Capital
                                Expenditure

Government Partnership with     Assistance to Disadvantaged              -        500         500            500            -
Lifetime Design Homes           Persons (M 23)
                                Non-Departmental Output
                                Expenses




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                                                                      2009/10    2010/11     2011/12     2012/13     2013/14
                                                                     Budgeted     Budget    Estimated   Estimated   Estimated
Policy Initiative                  Appropriation                         $000       $000         $000        $000        $000
Improving Attitudes Towards        Promoting Positive Outcomes               -     1,000       1,000       1,000             -
Disabled People                    for Disabled People (M 23)

                                   Departmental Output Expenses

Limited Service Volunteer          Tailored Sets of Services to         4,750      9,500       4,750            -            -
Programme                          Help People into Work or
                                   Achieve Independence (M 63)

                                   Departmental Output Expenses

Monitoring the UN Convention on Promoting Positive Outcomes                  -       250         250         250             -
the Rights of People with       for Disabled People (M 23)
Disabilities
                                Departmental Output Expenses

NZ Productivity Commission         Policy Advice and Support to
                                   Ministers (M 63)

                                   •   Social Policy Advice Output           -       (70)       (140)       (150)       (150)
                                       Class

                                   Departmental Output Expenses

Opportunities for Young People     Employment Assistance (M 63)        42,375      3,225            -           -            -
During the Economic Downturn
                                   Non-Departmental Other
                                   Expenses
                                   Independent Youth Benefit            (572)      (191)            -           -            -
                                   (M 63)

                                   Non-Departmental Benefits and
                                   Other Unrequited Expenses
                                   Unemployment Benefit and            (7,603)    (2,534)           -           -            -
                                   Emergency Benefit (M 63)

                                   Non-Departmental Benefits and
                                   Other Unrequited Expenses

                                   Assistance to Disadvantaged          (500)      (500)            -           -            -
                                   Persons (M 63)
                                   Non-Departmental Output
                                   Expenses

Pathway to Partnership             Family and Community                      -          -     (5,427)     (5,427)     (5,427)
Unallocated Funding                Services (M 63)
                                   Departmental Output Expenses

                                   Strong Families (M 63)                    -          -    (91,786)   (116,266)   (116,266)

                                   Non-Departmental Output
                                   Expenses

Plan of Action to Prevent People   Hardship Assistance (M 63)              30         30          30          30            30
Trafficking                        Non-Departmental Benefits and
                                   Other Unrequited Expenses

Reducing Youth Offending           Youth Justice Services (M 63)             -     1,400       1,400       1,400       1,400
Programme




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                                                                       2009/10    2010/11    2011/12     2012/13     2013/14
                                                                      Budgeted     Budget   Estimated   Estimated   Estimated
Policy Initiative                Appropriation                            $000       $000        $000        $000        $000

Removing Childcare Subsidy       Childcare Assistance (M 63)                  -     (563)       (572)       (579)       (588)
from Unlicensed Limited
Attendance Centres               Non-Departmental Benefits and
                                 Other Unrequited Expenses
Ring-Fenced Funding for Family   Strong Families (M 63)                       -     6,658     17,009      27,294      35,675
Support Services
                                 Non-Departmental Output
                                 Expenses
Return of Balance Sheet Cash -   Net Asset Schedule of the             (27,000)         -           -           -           -
Capital Repayment                Ministry of Social Development
                                 (M 63)
                                 Capital Expenditure to be Incurred
                                 by the Department

Return of Balance Sheet Cash - Policy Advice and Support to                   -      (70)        (70)        (70)        (70)
Retain Associated Capital Charge Ministers (M 63)

                                 •   Social Policy Advice Output
                                     Class

                                 Departmental Output Expenses

                                 Care and Protection Services                 -     (490)       (490)       (490)       (490)
                                 (M 63)
                                 Departmental Output Expenses

                                 Development and Funding of                   -      (50)        (50)        (50)        (50)
                                 Community Services (M 63)
                                 Departmental Output Expenses

                                 Income Support and Assistance                -      (85)        (85)        (85)        (85)
                                 to Seniors (M 63)
                                 Departmental Output Expenses

                                 Management of Student                        -      (55)        (55)        (55)        (55)
                                 Support (M 63)
                                 Departmental Output Expenses

                                 Services to Protect the Integrity            -      (75)        (75)        (75)        (75)
                                 of the Benefit System (M 63)
                                 Departmental Output Expenses

                                 Tailored Sets of Services to                 -   (1,000)     (1,000)     (1,000)     (1,000)
                                 Help People into Work or
                                 Achieve Independence (M 63)
                                 Departmental Output Expenses

                                 Youth Justice Services (M 63)                -     (200)       (200)       (200)       (200)

                                 Departmental Output Expenses

Review of Contracted Services    Counselling and Rehabilitation               -     (182)       (182)       (182)       (182)
                                 Services (M 63)
                                 Non-Departmental Output
                                 Expenses

                                 Education and Prevention                     -     (563)       (563)       (563)       (563)
                                 Services (M 63)
                                 Non-Departmental Output
                                 Expenses




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                                                                   2009/10      2010/11     2011/12     2012/13     2013/14
                                                                  Budgeted       Budget    Estimated   Estimated   Estimated
Policy Initiative                Appropriation                        $000         $000         $000        $000        $000

                                 Family Wellbeing Services                 -      (552)        (552)       (552)       (552)
                                 (M 63)

                                 Non-Departmental Output
                                 Expenses

                                 Strengthening Providers and               -     (2,756)     (3,536)     (3,536)     (3,536)
                                 Communities (M 63)
                                 Non-Departmental Output
                                 Expenses

                                 Strong Families (M 63)                    -      (561)      (1,130)     (1,240)     (1,288)

                                 Non-Departmental Output
                                 Expenses

                                 Vocational Services for People            -     (2,552)     (2,552)     (2,552)     (2,552)
                                 with Disabilities (M 63)
                                 Non-Departmental Output
                                 Expenses

                                 Contingency and Innovations               -      (365)        (365)       (365)       (365)
                                 Fund (M 63)
                                 Non-Departmental Other
                                 Expenses

                                 Mainstream Supported                      -     (1,020)     (1,020)     (1,020)     (1,020)
                                 Employment Programme (M 63)

                                 Non-Departmental Other
                                 Expenses
                                 Out of School Care                        -      (432)        (734)     (1,034)     (1,584)
                                 Programmes (M 63)

                                 Non-Departmental Other
                                 Expenses
Social Workers in Hospitals      Care and Protection Services              -      1,405       1,732       1,732       1,732
                                 (M 63)

                                 Departmental Output Expenses

Student Job Search and           Employment Assistance (M 63)         8,889            -           -           -            -
Additional Job Ops Places
                                 Non-Departmental Other
                                 Expenses
                                 Student Placement Services             785            -           -           -            -
                                 (M 63)

                                 Non-Departmental Output
                                 Expenses

                                 Assistance to Disadvantaged               -           -       (500)       (500)       (500)
                                 Persons (M 63)
                                 Non-Departmental Output
                                 Expenses

                                 Unemployment Benefit and            (1,989)           -           -           -            -
                                 Emergency Benefit (M 63)
                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses




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                                                                        2009/10    2010/11    2011/12     2012/13     2013/14
                                                                       Budgeted     Budget   Estimated   Estimated   Estimated
Policy Initiative                 Appropriation                            $000       $000        $000        $000        $000

Student Job Search and            Management of Student                   (150)          -           -           -           -
Additional Job Ops Places -       Support (M 63)
cont’d
                                  Departmental Output Expenses

                                  Net Asset Schedule of the              (6,035)         -           -           -           -
                                  Ministry of Social Development
                                  (M 63)

                                  Capital Expenditure to be Incurred
                                  by the Department

Study Costs for Beneficiaries:    Recoverable Assistance (M 63)             205       223            -           -           -
Time-limited and Targeted
Recoverable Assistance            Non-Departmental Capital
                                  Expenditure

                                  Debt Write-downs (M 63)                    82        89            -           -           -

                                  Non-Departmental Other
                                  Expenses

                                  Job Support Scheme (M 63)               (287)      (312)           -           -           -
                                  Non-Departmental Other
                                  Expenses

Transfer of Funds from Families   Children's Commissioner (M 63)            400       400         400         400         400
Commission to Children's
Commissioner                      Non-Departmental Output
                                  Expenses

                                  Families Commission (M 63)              (400)      (400)       (400)       (400)       (400)

                                  Non-Departmental Output
                                  Expenses

Wānanga Response to Job        Accommodation Assistance                       1         1            -           -           -
Summit and Enrolment Pressures (M 63)
                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses

                                  Unemployment and Emergency                  8         8            -           -           -
                                  Benefit (M 63)

                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses
                                  Student Allowances (M 63)                 477       154            -           -           -

                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses
                                  Debt Write-downs (M 63)                   210        69            -           -           -

                                  Non-Departmental Other
                                  Expenses
                                  Student Loans (M 63)                      512       169            -           -           -

                                  Non-Departmental Capital
                                  Expenditure
Work and Income Volume            Tailored Sets of Services to           17,200     12,600      9,200            -           -
Pressures                         Help People into Work or
                                  Achieve Independence (M 63)

                                  Departmental Output Expenses




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                                                                   2009/10      2010/11    2011/12     2012/13     2013/14
                                                                  Budgeted       Budget   Estimated   Estimated   Estimated
Policy Initiative                Appropriation                        $000         $000        $000        $000        $000
Increasing Medical Training      Accommodation Assistance                 -           -           -           -              1
Places                           (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Unemployment and Emergency               -           -           2           3              5
                                 Benefit (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Student Allowances (M 63)                -          28          89         149            198

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Debt Write-downs (M 63)                  -          73         180         291            401

                                 Non-Departmental Other
                                 Expenses

                                 Student Loans (M 63)                     -         153         380         614            846

                                 Non-Departmental Capital
                                 Expenditure

Maintain 2010 EFTS in the        Accommodation Assistance                 -          14          25          21             21
University and Polytechnic       (M 63)
Sectors
                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Unemployment and Emergency               -          82         144         124            120
                                 Benefit (M 63)
                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Student Allowances (M 63)                -       3,413       6,839       5,757       5,492
                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses

                                 Debt Write-downs (M 63)                  -       7,228       8,610       7,891       7,781

                                 Non-Departmental Other
                                 Expenses

                                 Student Loans (M 63)                     -      15,747      18,758      17,191      16,951

                                 Non-Departmental Capital
                                 Expenditure

Meet Some Additional Demand      Accommodation Assistance                 -           6          11          11             10
for Tertiary Education           (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Unemployment and Emergency               -          30          61          61            60
                                 Benefit (M 63)

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses
                                 Student Allowances (M 63)                -       1,326       2,959       2,935       2,880

                                 Non-Departmental Benefits and
                                 Other Unrequited Expenses




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                                                                   2009/10     2010/11    2011/12     2012/13        2013/14
                                                                  Budgeted      Budget   Estimated   Estimated      Estimated
Policy Initiative                 Appropriation                       $000        $000        $000        $000           $000

Meet Some Additional Demand       Debt Write-downs (M 63)                 -      2,894       4,132          4,203      4,280
for Tertiary Education - cont’d
                                  Non-Departmental Other
                                  Expenses
                                  Student Loans (M 63)                    -      6,305       9,002          9,157      9,324

                                  Non-Departmental Capital
                                  Expenditure

Relax Fee Regulation              Debt Write-downs (M 63)                 -      3,086      10,118         17,094     25,087

                                  Non-Departmental Other
                                  Expenses

                                  Student Loans (M 63)                    -      5,610      18,392         31,074     45,604

                                  Non-Departmental Capital
                                  Expenditure

Student Support Savings           Management of Student                   -      4,584       3,142          3,672      3,712
Package                           Support (M 63)
                                  Departmental Output Expenses

                                  Accommodation Assistance                -        22          40             36          37
                                  (M 63)
                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses

                                  Unemployment and Emergency              -       135         230            211         212
                                  Benefit (M 63)
                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses

                                  Student Allowances (M 63)               -      4,706      10,292          9,267      9,298

                                  Non-Departmental Benefits and
                                  Other Unrequited Expenses

                                  Debt Write-downs (M 63)           (6,585)   (43,290)    (59,924)    (59,443)       (63,219)
                                  Non-Departmental Other
                                  Expenses

                                  Student Loans (M 63)                    -   (65,936)    (93,547)    (91,697)       (98,386)

                                  Non-Departmental Capital
                                  Expenditure

Total Initiatives                                                   38,494     206,979     106,449        106,510    126,525



Analysis of Significant Trends

Total Vote: All Appropriations
Significant changes in departmental and non-departmental appropriations in Vote Social Development,
are discussed briefly below.
On 1 July 2008 Vote Child, Youth and Family Services merged 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
2004/05 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 2005/06 to 2007/08 refer only to changes
in Vote Social Development before the Votes were merged.




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Figure 1 - 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, in particular New Zealand Superannuation. Capital Expenditure and
Other Expenses also contributed to growth in the period up to 2009/10.

Departmental Output Expenses
Figure 2 - Trends in departmental output expenses




Source: Ministry of Social Development




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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 merged with Vote Social Development, on 1 July 2008
(approximately $420 million).
Departmental output expenses remained stable between 2008/09 and 2009/10 with a slight decrease of
$2.925 million.
Departmental output expenses increased by $20.508 million between 2009/10 and 2010/11 mainly
because funding for A Fresh Start for Young Offenders increased in 2010/11 compared with 2009/10, and
a Budget 2008 decision to increase funding for the Youth Justice Central Residential facility in 2010/11
compared with 2009/10.

Non-Departmental Output Expenses
Figure 3 - Trends in non-departmental output expenses




Source: Ministry of Social Development

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.




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Non-departmental output expenses increased by $109.616 million between 2007/08 and 2008/09 mainly
because Vote Child, Youth and Family Services merged with Vote Social Development, on 1 July 2008
(approximately $67 million). The other main reason was increased funding for the Pathway to Partnership
initiative for 2008/09 and outyears.
Non-departmental output expenses increased by $9.264 million between 2008/09 and 2009/10 mainly
because funding for the Pathway to Partnership initiative increased in 2009/10 compared with 2008/09.
Non-departmental output expenses decreased by $10.293 million between 2009/10 and 2010/11 mainly
as a result of the Review of Contracted Services.

Non-Departmental Other Expenses
Figure 4 - Trends in non-departmental other expenses




Source: Ministry of Social Development

The increase in Other Expenses between 2006/07 and 2010/11 is mainly due to an increase in Debt
Write-downs to reflect the growth in Student Loans over recent years.




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Non-Departmental Capital Expenditure
Figure 5 - Trends in non-departmental capital expenditure




Source: Ministry of Social Development

Capital Expenditure is dominated by Student Loans, with the next largest item, Recoverable Assistance,
making up about 10% of the total, but reaching over 11% in 2008/09. Recoverable Assistance grew
rapidly in 2008/09 reflecting sharp price increases in items such as food and fuel as well as the impact of
the recession. This latter effect has continued to drive demand up during 2009/10. The increase in capital
expenditure up to 2007/08 reflects greater Student Loan borrowing following the introduction of the no
interest on loans policy from April 2006. Growth during 2008/09 and 2009/10 arises from the recession
related increase in the proportion of eligible students that take up Student Loans combined with cost
increases (particularly in 2008/09) and reduced earnings from other sources. These underlying factors
combine with policy changes listed in the previous section to produce more subdued growth from
2010/11.




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Non-Departmental Benefits and Other Unrequited Expenses
Figure 6 - Trends in non-departmental benefits and other unrequited expenses




Source: Ministry of Social Development

New Zealand superannuation accounted for nearly 52% of total expenditure in 2005/06 and grew to 55%
by 2007/08. This reduced to 52% in 2009/10 but is expected to rise to over 57% by 2013/14. The
movement in expenditure between 2005/06 and 2007/08 was mostly driven by New Zealand
Superannuation. The net decrease in Unemployment Benefit and Emergency Benefit expenditure during
the 2005/06 to 2007/08 period was largely offset by increases in Invalid's Benefit, Sickness Benefit and
second tier assistance (Accommodation Assistance, Disability Assistance and Childcare
Assistance). This left New Zealand Superannuation as the main driver of the increase in expenditure over
those years. During the 2007/08 to 2010/11 periods growth in New Zealand Superannuation was
relatively eclipsed by growth in Unemployment Benefit and Emergency Benefit, Domestic Purposes
Benefit, Student Allowances, Accommodation Assistance and Hardship Assistance, which all rose
primarily as a response to the economic cycle. Nearly 65% of growth in expenditure between 2005/06
and 2013/14 is caused by the cost of living indexation adjustments made each April and includes the
impact on the cost of living of the Tax Reform Package for Budget 2010.




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New Zealand Superannuation
Figure 7 - Trends in New Zealand Superannuation




Source: Ministry of Social Development

About 63% of the $4,370 million increase over the 2005/06 to 2013/14 period is explained by annual cost
of living indexation adjustments. These include wage floor impacts where relevant, for example the 66%
wage floor applied in April 2007 and in April 2010. Tax cuts, for example in October 2008, add directly to
gross expenditure through applying the next indexation adjustment to a higher net rate while tax cuts to
higher tax brackets (eg, as in April 2009) raise the level at which future wage floors are applied. In
particular, the Tax Reform Package for Budget 2010 is expected to cause expenditure to jump to $740
million in 2011/12 (from the year before) compared $530 million in 2010/11 and then back to $590 million
in 2012/13. Over the full nine year period the number of recipients is expected to rise by 140,000 or 29%
to reach an average of 622,000 during the 2013/14 year. This growth is in line with the projected growth
in the New Zealand population aged 65 years and over.




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Invalid's Benefit
Figure 8 - Trends in Invalid's Benefit




Source: Ministry of Social Development

Annual expenditure is projected to increase by $343 million or 32% between 2005/06 and 2013/14. Cost
of living indexation adjustments account for nearly all of the increase. This effect varies from year to year,
being smaller in earlier years but is projected to be significant in the future. Effects such as income tax
cuts reduce the gross of tax expenditure shown in Figure 8 (without reducing net of tax expenditure) while
increases in indirect taxes raise the reported consumers price index, affecting the annual cost of living
adjustment to Invalid's Benefit. When combined with the expected flatter trend in the number of recipients
these factors produce a very high impact from cost of living adjustments. The number of recipients has
increased from an average of 75,700 in 2005/06 to an expected 87,500 in 2009/10 and a projected
88,300 on average in 2013/14.




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Domestic Purpose Benefit
Figure 9 - Domestic Purpose Benefit




Source: Ministry of Social Development

Annual expenditure is expected to rise by nearly $446 million or about 30% between 2005/06 and
2013/14. This increase includes cost of living adjustments of about $450 million over the nine year period.
The average number of recipients in 2005/06 was 105,600 and fell steadily to a low of 97,500 in 2007/08,
reflecting both a strong labour market for most of that period and the impact of the Working for Families
package. Since the onset of the economic recession the number of recipients has increased and is
expected to average 109,600 in 2009/10, just above the 2004/05 level. A further increase to reach
113,600 on average during the 2013/14 year is projected. A rise in births, especially in the 18 to 24 year
age group, and the deteriorating economy contributed to the rise in recipients over the past two years.




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Unemployment Benefit and Emergency Benefit
Figure 10 - Trends in Unemployment Benefit and Emergency Benefit




Source: Ministry of Social Development

Annual expenditure is expected to rise by about $63 million or nearly 9% between 2005/06 and
2013/14. Cost of living indexation adjustments each April account for nearly treble the overall change
during the nine years, at $172 million. Also over the nine year period the number of recipients is expected
to reduce by about 7% from an average of 64,300 to 59,900. This purely reflects the starting point, which
was much higher in earlier years back to 1998/99. The number of recipients reached a low of 37,400 on
average during 2007/08 and is expected to peak at 80,500 on average during 2010/11, up slightly from
the current year, before falling in line with an improving economic outlook.




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Sickness Benefit
Figure 11 - Trends in Sickness Benefit




Source: Ministry of Social Development

Annual expenditure is expected to rise by 54% from $541 million in 2005/06 to $832 million in 2013/14.
Nearly 65% of this increase relates to the cost of living adjustment of benefit rates each April. The number
of recipients rose steadily from 46,700 on average in 2005/06 to reach 50,000 in 2007/08. This
accelerated from late 2008/09 and is anticipated to reach an average of 58,200 in 2010/11 before
continuing to rise steadily to reach 62,200 during 2013/14. The strong increase over the past eighteen
months is mainly due to economic conditions.




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Accommodation Assistance
Figure 12 - Trends in Accommodation Assistance




Source: Ministry of Social Development

Annual expenditure will increase from $843 million in 2005/06 to an estimated $1,251 million in 2013/14,
an increase of over $400 million or 48%. Expenditure reached $1,000 million in the twelve months to July
2009 and is expected to reach $1,158 million in 2009/10. There were 249,400 recipients in 2005/06 and
are expected to be 312,400 in 2009/10 and 320,900 recipients on average in 2013/14. This 29% increase
over nine years reflects two different trends. Between 2005/06 and 2007/08 the fall in Unemployment
Benefit and Emergency Benefit recipients was partly offset by a rise in the uptake of Accommodation
Assistance by working households, while the rise between 2008/09 and 2010/11 reflects the rise in the
number of main benefit recipients. The average amount paid per recipients rose by about 10% in each of
2004/05 and 2005/06 mainly due to Working for Families changes. Since then the increase has been a
slower 2% per year, with the 2009/10 year expected to be flat. Overall the average amount paid per week
is expected to rise from $65 in 2005/06 to $75 by 2013/14.




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Student Allowances
Figure 13 - Trends in Student Allowances




Source: Ministry of Social Development

Annual expenditure will increase by $198 million from $354 million in 2005/06 to an estimated $552
million in 2013/14, a rise of 56%. The average number of recipients was 32,400 in 2005/06, though the
number during term time has typically been 40% greater than the annual average, and shows evidence of
growing toward 50% with more summer semesters. The average number of recipients was little changed
at 32,300 in 2007/08. It grew rapidly to 36,700 in 2008/09 (a combination of fewer jobs in early 2009 and
changes to parental income rules) and is expected to continue its growth to reach 52,800 during 2010/11.
This rapid growth over the current and next year are responses to the recession. This higher uptake rate
occurs when the under 25 year population is also near a decade high. From 2011/12 the number of
recipients is expected to decline back toward its longer term trend. Costs of living adjustments to weekly
allowance payment rates accounts for about 53% of the total nine year change in expenditure.




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Other Benefits
Figure 14 - Trends in Other Benefits




Source: Ministry of Social Development

This section covers the other 18 benefits and other unrequited expense appropriations not already
discussed. The largest item, Disability Assistance, has about 35% of the annual expenditure in the 'Other
Benefits' category and grew at a steady pace of about $20 million per year between 2005/06 ($330
million) and 2009/10 (reaching $390 million). It is expected to grow at a lesser pace of nearer $13 million
per year out to 2013/14 (growing to $465 million). About 32% of the growth between 2005/06 and
2013/14 is caused by the cost of living indexation of Disability Assistance. The next three largest
contributors are Hardship Assistance, Childcare Assistance and Orphan's Benefit/Unsupported Child's
Benefit. Hardship Assistance includes third tier assistance such as Special Needs Grants and Temporary
Additional Support, both of which are sensitive to economic conditions. Special Needs Grants rose
sharply from late 2008 following policy changes that particularly increased available food grants. After
falling until 2006/07, Hardship Assistance stabilised in 2007/08 before increasing to an expected $273
million in 2009/10. It is forecast to peak at $288 million next year before levelling out. Childcare
Assistance grew quickly following the introduction of Working for Families in 2004/05. Expenditure was
$110 million in 2005/06 and has continued to grow. Expenditure is expected to reach $190 million in
2010/11 and then level out, with a downward drift. Cost of living indexation adjustments account for over
50% of the increase in annual expenditure between 2005/06 and 2013/14. Orphan's Benefit/Unsupported
Child's Benefit has grown at an average pace of about $7 million per year from $64 million in 2005/06 to
an expected $101 million in 2009/10 and a forecast $126 million in 2013/14. Cost of living adjustments
account for about 44% of the nine year growth. These four items account for 74% of the 'Other Benefits'
category in 2005/06 and will grow to account for 85% by 2013/14. The exception is 2010/11 when they
account for 72%. This is the year when an estimated $160 million will be spent on the new appropriation
"Special compensation payment for GST increase". The next most significant items are Widow's Benefit
and Payments to Australia, both on a downward trend over the nine year period.




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Performance Improvement Actions

Action                            Short-Term Deliverables                               Timing        Medium Term Impact Measures
                                                                                                      (by 2013)
Contract out services where        Review the Ministry ‘s Corporate support functions   31 December   Ministry's corporate support
these can be more efficiently or to determine the optimised mix of what is delivered    2010          insourcing/outsourcing mix is
cost effectively delivered through in house and what is outsourced                                    independently assessed to
outsourced suppliers                                                                                  identify cost efficiencies
                                                                                                      by December 2010




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Part 2 - Details and Expected Performance for
Output Expenses
Part 2.1 - Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes or Objectives of Appropriations       Appropriations

More people get into work and stay in work                       Collection of Balances Owed by Former Clients and Non-
                                                                 beneficiaries, Management of Service Cards (MCOA) - Administration
                                                                 of Community Services Card output class, Management of Student
                                                                 Support, Policy Advice and Support to Ministers (MCOA) - Social
                                                                 Policy Advice output class, Promoting Positive Outcomes for Disabled
                                                                 People, 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.
More children are safe                                           Adoption Services, Care and Protection Services, Family and
                                                                 Community Services, and Policy Advice and Support to Ministers
                                                                 (MCOA) - Social Policy Advice output class and Crown Entity
                                                                 Monitoring output class, and Prevention Services.

More young people stay on track                                  Family and Community Services, Management of Student Support,
                                                                 Policy Advice and Support to Ministers (MCOA) - Social Policy Advice
                                                                 output class and Crown Entity Monitoring output class, Tailored Sets
                                                                 of Services to Help People into Work or Achieve Independence, and
                                                                 Vocational Skills Training

Reduced re-offending by young people                             Family and Community Services, Management of Student Support,
                                                                 Policy Advice and Support to Ministers (MCOA) - Social Policy Advice
                                                                 output class and Crown Entity Monitoring output class, Tailored Sets
                                                                 of Services to Help People into Work or Achieve Independence,
                                                                 Vocational Skills Training, and Youth Justice Services.

Improved quality of life for older people                        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.

Communities are better able to support themselves                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, Policy Advice and Support to Ministers (MCOA) -
                                                                 Social Policy Advice output class, Prevention Services, and
                                                                 Promoting Positive Outcomes for Disabled People, Tailored Sets of
                                                                 Services to Help People into Work or Achieve Independence
                                                                 and Youth Justice Services.


For further information on the intended impacts, outcomes and objectives of the departmental output
expense appropriations, please see the Statement of Intent for the Ministry of Social Development.




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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

                                                                                    2009/10                                        2010/11

                                                                              Budgeted          Estimated Actual                    Budget
                                                                                  $000                     $000                       $000
Total Appropriation                                                               8,808                     8,808                    9,078

Revenue from Crown                                                                8,762                     8,762                    9,032

Revenue from Other                                                                   46                        46                       46



Reasons for Change in Appropriation
This appropriation increased largely because a fiscally neutral reallocation of overheads increased costs
in 2010/11.

Output Performance Measures and Standards

                                                                                    2009/10                                        2010/11

                                                                              Budgeted          Estimated Actual                    Budget
Performance Measures                                                          Standard                 Standard                   Standard

Percentage of adopted parents evaluating the education                             95%                       95%                  95-100%
programme as achieving its objectives (see Note 1)


Note 1 - Research shows educating and preparing prospective adoptive parents, results in more stable
adoptions and that there is less placement disruption.

Conditions on Use of Appropriation

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.




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Current and Past Policy Initiatives

                                                           Year of     2009/10       2010/11         2011/12         2012/13     2013/14
                                                           First      Budgeted        Budget        Estimated       Estimated   Estimated
Policy Initiative                                          Impact         $000          $000             $000            $000        $000

Current Government

Value for Money (VFM) Departmental Spending                2011/12           -               -           (30)            (71)        (71)
Pressures and Savings

Previous Government

Child, Youth and Family Draw Down of Contingency           2007/08        264            264             264             264         264
Funds for Settlement of Collective Agreement

Increases in Personnel Costs Arising from                  2005/06        145            145             145             145         145
Amendments to the Holidays Act 2003



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

                                                                                   2009/10                                        2010/11

                                                                           Budgeted              Estimated Actual                  Budget
                                                                               $000                         $000                     $000

Total Appropriation                                                         317,782                      317,782                  315,885
Revenue from Crown                                                          315,186                      315,186                  313,289
Revenue from Other                                                               2,596                     3,596                     2,596



Reasons for Change in Appropriation
This appropriation decreased mainly because a Budget 2009 decision provided less funding in 2010/11
than in 2009/10 as a result of the Value for money exercise carried out by the Ministry ($4.144 million).
This was partially offset by additional funding for Social Workers in Hospitals ($1.405 million).

Output Performance Measures and Standards

                                                                                   2009/10                                        2010/11

                                                                           Budgeted              Estimated Actual                  Budget
Performance Measures                                                       Standard                     Standard                 Standard

Engagement and Assessment

Notifications that require further action are allocated to a social
worker within the timeframe appropriate to the safety of the child
or young person:

•   Critical (less than 24 hours)                                          95-100%                      95-100%                  95-100%

•   Very urgent (up to 48 hours)                                            90-95%                       90-95%                    90-95%




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                                                                                        2009/10                                        2010/11
                                                                                 Budgeted           Estimated Actual                    Budget
Performance Measures                                                             Standard                  Standard                   Standard

Action taken at sites by social workers to establish the
immediate safety of the child or young person, and to confirm
the response time and further action required, within
timeframes:

•    Urgent (up to 7 days)                                                         50-85%                     50-85%                   80-95%

•    Low urgent (up to 28 days)                                                    50-85%                     50-85%                   80-95%

Percentage of investigations, child and family assessments                   New measure               New measure                            80%
completed within 60 days for those aged five and over is no less
than
Seeking Safety and Security

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

Percentage of Care and Protection Family Group Conference                             90%                        90%                  95-100%
plans reviewed by the agreed due date
Assessments (see Note 2) and reports provided to Courts are                           90%                        90%                          90%
delivered on time

Securing Stability and Wellbeing

Percentage of Family Court plans reviewed on time (see Note 3)                        90%                        90%                  95-100%


Note 2 - The act of assessing information in order to acquire an understanding of a situation or problem,
or to estimate the suitability of something or someone.
Note 3 - The timeliness of Family Court planned reviews are directed by the Family Court (eg, Children
under seven years old have planned reviews every six months or as directed by the Court. Children and
young people over seven years old have planned reviews every 12 months or as directed by the Court).

Conditions on Use of Appropriation

Reference                                        Conditions

Children, Young Persons, and Their Families      The Children, Young Persons, and Their Families Act 1989 serves to protect and assist
Act 1989                                         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.




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Current and Past Policy Initiatives

                                                      Year of      2009/10      2010/11          2011/12         2012/13     2013/14
                                                      First       Budgeted       Budget         Estimated       Estimated   Estimated
Policy Initiative                                     Impact          $000         $000              $000            $000        $000

Current Government

Budget 2010 Tax Package                               2010/11             -           607            810             810         810

Return of Balance Sheet - Retain Associated Capital   2010/11             -          (490)          (490)           (490)       (490)
Charge
Social Workers in Hospitals                           2010/11             -          1,405          1,732          1,732       1,732

Value for Money (VFM) Departmental Spending           2009/10         6,800          2,656        (1,774)         (1,774)     (1,774)
Pressures and Savings
Time Limited Programmes to Support Families,          2009/10          251               -              -               -           -
Children and Young People at Risk

Previous Government

Child, Youth and Family Draw Down of Contingency      2007/08         5,371          5,371          5,371          5,371       5,371
Funds for Settlement of Collective Agreement

Care and Protection System Service Response to        2006/07        20,444         20,444         20,444         20,444      20,444
Demand
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             2005/06           19              19             19             19          19
Amendments to the Holidays Act 2003



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

                                                                              2009/10                                         2010/11

                                                                       Budgeted              Estimated Actual                  Budget
                                                                           $000                         $000                     $000

Total Appropriation                                                       16,682                      16,682                   16,632

Revenue from Crown                                                        16,502                      16,502                   16,452

Revenue from Other                                                            180                        180                      180




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Output Performance Measures and Standards

                                                                                            2009/10                                        2010/11

                                                                                   Budgeted              Estimated Actual                   Budget
Performance Measures                                                               Standard                     Standard                  Standard

The actual amount of money collected by the Collection Units is                    $77-$82m                    $77-$82m                  $78-$85m
expected to be between:

The cost per dollar of collecting balances owed will be no less                           $0.25                    $0.25                      $0.24
than:
The percentage of clients on arrangement to pay, or paid in full                           82%                      82%                        82%
within four months of the balances owed transferring to the
Collection Units will be no less than:

The percentage of clients on arrangement to pay, or paid in full                           85%                      85%                     85-90%
within 12 months of balances owed transferring to the Collection
Units will be no less than:

The percentage of work completed accurately by the Collection                              95%                      95%                        95%
Units will be no less than:


Conditions on Use of Appropriation

Reference                                           Conditions

Sections 85A to 86J of the Social Security Act      The Social Security Act 1964 provides for the recovery of payments made in excess of
1964 and the Ministerial Direction for section 86   authorised rates and for recoverable assistance loans.
pursuant to section 5 of the Social Security Act    The Ministerial Direction for section 86A is in relation to the Chief Executive's powers to
1964                                                recover monies as debts due to the Crown.


Current and Past Policy Initiatives

                                                           Year of            2009/10         2010/11        2011/12          2012/13     2013/14
                                                           First             Budgeted          Budget       Estimated        Estimated   Estimated
Policy Initiative                                          Impact                $000            $000            $000             $000        $000

Current Government

Value for Money (VFM) Departmental Spending                2010/11                    -           (63)          (152)            (152)       (152)
Pressures and Savings



Development and Funding of Community Services (M63)

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



Expenses and Revenue

                                                                                            2009/10                                        2010/11

                                                                                   Budgeted              Estimated Actual                   Budget
                                                                                       $000                         $000                      $000
Total Appropriation                                                                       8,370                    8,370                      8,394

Revenue from Crown                                                                        8,311                    8,311                      8,335

Revenue from Other                                                                          59                          59                        59




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Output Performance Measures and Standards

                                                                                           2009/10                                         2010/11
                                                                                   Budgeted               Estimated Actual                  Budget
Performance Measures                                                               Standard                      Standard                 Standard

All funding agreements will have their provider monitoring                                100%                      100%                      100%
reports reviewed and assessed at least once a year for funding
agreement compliance

All contracted providers will be assessed at least once every two                         100%                      100%                      100%
years against Child, Youth and Family Approval Standards (see
Note 4)


Note 4 - This covers all providers contracted under sections 396 and 403 of the Children, Young Persons,
and Their Families Act 1989.

Conditions on Use of Appropriation

Reference                                          Conditions

Children, Young Persons, and Their Families        Part 8 of the Children, Young Persons, and Their Families Act 1989 comprises provisions
Act 1989                                           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 service
                                                   •   provider development
                                                   •   quality assurance processes to ensure providers meet quality standards
                                                   •   the management of service provider funding agreements.



Current and Past Policy Initiatives

                                                          Year of            2009/10         2010/11          2011/12         2012/13     2013/14
                                                          First             Budgeted          Budget         Estimated       Estimated   Estimated
Policy Initiative                                         Impact                $000            $000              $000            $000        $000

Current Government

Value for Money (VFM) Departmental Spending               2010/11                     -          (26)             (63))           (63)        (63)
Pressures and Savings

Return of Balance Sheet Cash - Retain Associated          2010/11                     -          (50)             (50)            (50)        (50)
Capital Charge

Previous Government

Child, Youth and Family Draw Down of Contingency          2007/08                  128            128              128            128          128
Funds for Settlement of Collective Agreement

Services for Children Witnessing Family Violence          2005/06                   71               71             71             71           71




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Family and Community Services (M63)

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



Expenses and Revenue

                                                                             2009/10                       2010/11

                                                                        Budgeted       Estimated Actual     Budget
                                                                            $000                  $000        $000

Total Appropriation                                                       31,318                31,318      34,752

Revenue from Crown                                                        31,189                31,189      34,623

Revenue from Other                                                           129                   129         129



Reasons for Change in Appropriation
This appropriation increased largely because additional funding was agreed to establish the NGO Quality
Services Fund, to promote efficiencies from community-based social service providers, and to expand the
Settling In Programme. This was partially offset by time-limited funding in 2009/10 and an increase in
funding removed for the Community Response Contingency in 2010/11 compared with 2009/10.

Output Performance Measures and Standards

                                                                             2009/10                       2010/11

                                                                        Budgeted       Estimated Actual      Budget
Performance Measures                                                    Standard              Standard     Standard

Social Support Services Sector Leadership and Co-
ordination
Heartland Services

The percentage of surveyed clients agreeing that Heartlands          New measure         New measure           70%
had improved access to government and community services in
their community

The percentage of surveyed agencies agreeing that they were          New measure         New measure           70%
satisfied or very satisfied with Heartlands Centres accessibility,
range of services and facilities, will be no less than
Supporting Families and Communities

Strategies for Kids, Information for Parents (SKIP)

The percentage of community projects funded through SKIP that        New measure         New measure        90-95%
meets its objectives as agreed by the selection panel will be
Campaign for Action Against Family Violence

The level of public awareness of the key messages of the                    80%                   80%       85-90%
campaign will be no less than




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                                                                                2009/10                                          2010/11
                                                                         Budgeted              Estimated Actual                   Budget
Performance Measures                                                     Standard                     Standard                  Standard

Youth Gangs Project

The number of young people supported through group activities        New measure                 New measure                  3,600-4,500
and events by Youth Workers will be between

Management of Social Services Funding Agreements

The number of funding agreements will be between                     New measure                 New measure                  1,200-1,600



Current and Past Policy Initiatives

                                                         Year of     2009/10      2010/11          2011/12         2012/13     2013/14
                                                         First      Budgeted       Budget         Estimated       Estimated   Estimated
Policy Initiative                                        Impact         $000         $000              $000            $000        $000
Current Government

Pathway to Partnership Unallocated Funding               2011/12            -              -        (5,427)         (5,427)      (5,427)

Value for Money (VFM) Departmental Spending              2010/11            -          (59)           (141)           (141)        (141)
Pressures and Savings

Community Response Model: NGO Quality Services           2010/11            -        5,128            5,628          5,828        7,098
Fund
Expansion of the Settling In Programme                   2010/11            -          444             418             418             -

Family Violence Whānau Ora Fund                          2009/10         (98)          (78)            (78)            (78)         (78)

Time Limited Programmes to Support Families,             2009/10       1,121               -              -               -            -
Children and Young People at Risk

Community Response Contingency: Responding to            2009/10      (3,787)       (4,657)               -               -            -
Urgent Funding Issues
Previous Government

Supporting a Sustainable NGO Social Services Sector      2008/09       5,262         6,132            6,902          6,902        6,902
(Pathway to Partnership)
Continue Strategies with Kids Information for Parents    2006/07       3,684         3,684            3,684          3,684        3,684
(SKIP) Programme

Expansion of Youth Transitions                           2006/07       2,500         2,500            2,500          2,500        2,500

Reducing Violence Within Families                        2006/07       1,046               -              -               -            -
Early Intervention for Vulnerable Children - Expansion   2005/06         245           245             245             245          245
of Family Start

Early Intervention for Vulnerable Children - Family Start 2005/06        221           221             221             221          221
Training and Qualifications
Early Intervention for Vulnerable Children - Services for 2005/06        202           202             202             202          202
Children Witnessing Family Violence

Families Programme of Action - Families Innovation       2005/06         444           444             444             444          444
Fund
Increase in Funding for Elder Abuse and Neglect          2005/06         116           116             116             116          116
Prevention

Increase Strengthening Families Co-ordinators' Paid      2005/06         581           581             581             581          581
Hours
NGO Study Awards                                         2005/06          79              79             79             79           79

Strengthening Families Review                            2005/06         646           646             646             646          646




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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 to help
 older people maintain independence and social participation; and administering international social
 security agreements relating to non-superannuitants.



Expenses and Revenue

                                                                            2009/10                        2010/11

                                                                      Budgeted        Estimated Actual      Budget
                                                                          $000                   $000         $000

Total Appropriation                                                      34,439                34,439       34,667

Revenue from Crown                                                       34,027                34,027       34,255

Revenue from Other                                                         412                    412          412



Output Performance Measures and Standards

                                                                            2009/10                        2010/11
                                                                      Budgeted        Estimated Actual       Budget
Performance Measures                                                  Standard               Standard      Standard

Services to Seniors

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

The percentage of entitlement assessments completed                New measure           New measure           90%
accurately will be no less than
The percentage of entitlement assessments for payment of           New measure           New measure        85-90%
New Zealand Superannuation (in New Zealand and overseas)
and residential subsidies, finalised within required timeframes
will be no less than (see Note 5)


Note 5 - This combines timeliness measures for all activities in this output expense. Timeframes
standards for each component are as follows:

• Five working days for New Zealand Superannuation entitlement assessments completed for payment
  in New Zealand.

• Twenty working days for New Zealand Superannuation entitlement assessments completed for
  payment overseas.

• Twenty working days for residential subsidy entitlement assessments.




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Current and Past Policy Initiatives

                                                   Year of        2009/10        2010/11         2011/12          2012/13     2013/14
                                                   First         Budgeted         Budget        Estimated        Estimated   Estimated
Policy Initiative                                  Impact            $000           $000             $000             $000        $000
Current Government

Value for Money (VFM) Departmental Spending        2010/11               -           (126)          (301)            (301)       (301)
Pressures and Savings
Return of Balance Sheet Cash - Retain Associated   2010/11               -            (85)           (85)             (85)        (85)
Capital Charge

Previous Government

Review of the Treatment of Overseas Pensions and   2008/09            233             227            228              228         228
Payment of New Zealand Superannuation and
Veterans' Pension Overseas



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

                                                                               2009/10                                         2010/11

                                                                      Budgeted               Estimated Actual                   Budget
                                                                          $000                          $000                      $000

Total Appropriation                                                          7,123                     7,123                      7,103

Administration of Community Services Card                                    5,702                     5,702                      5,682

Management of SuperGold Card                                                 1,421                     1,421                      1,421

Revenue from Crown                                                           7,087                     7,087                      7,067

Administration of Community Services Card                                    5,666                     5,666                      5,646

Management of SuperGold Card                                                 1,421                     1,421                      1,421

Revenue from Other                                                             36                           36                      36

Administration of Community Services Card                                      36                           36                      36

Management of SuperGold Card                                                     -                           -                           -




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Output Performance Measures and Standards

                                                                                     2009/10                                      2010/11

                                                                              Budgeted          Estimated Actual                   Budget
Performance Measures                                                          Standard                 Standard                  Standard

Administration of Community Services Card Output Class

The percentage of Community Services Card entitlement                              95%                       95%                        95%
assessments (see Note 6) completed accurately will be no less
than
The percentage of Community Services Card entitlement                              90%                       90%                   90-95%
assessments completed within two working days of receipt will
be no less than

Management of SuperGold Card Output Class

The percentage of SuperGold Card entitlement                                       95%                       95%                 95-100%
assessments (see Note 7) completed accurately will be no less
than

The percentage of SuperGold Card entitlement                                       90%                       90%                 95-100%
assessments completed within two working days of receipt will
be no less than

The number of new business partners engaged will be no fewer              New measure              New measure                          150
than:


Note 6 - This assessment relates to cards where an entitlement assessment is required. Some cards are
issued automatically without requiring an assessment, for example where the recipient commences
receiving a benefit.
Note 7 - Recipients of New Zealand Superannuation and Veteran's Pension are automatically issued with
a SuperGold card. However, around six per cent of card recipients require their entitlement to be
assessed as they either elected not to apply for New Zealand Superannuation upon turning 65, or do not
meet the New Zealand Superannuation residency requirements.

Conditions on Use of Appropriation

Reference                                                             Conditions

Administration of Community Services Card Output Class

Health Entitlement Cards Regulations 1993 pursuant to section 52 of The Health Entitlement Cards Regulations 1993 provide for the
the Health and Disability Services Act 1993, section 25(1)(c) of the assessment, issue, and administration of Community Services Cards.
Health Reforms (Transitional Provisions) Act 1993, and section 132A
of the Social Security Act 1964
Management of SuperGold Card Output Class

Social Security (SuperGold Card) Regulations 2007 pursuant to           The Social Security (SuperGold Card) Regulations 2007 and the
section 132A of the Social Security Act 1964 and the Health             Health Entitlement Cards Regulations 1993 provide for the
Entitlement Cards Regulations 1993 pursuant to section 52 of the        assessment, issue and administration of SuperGold Cards.
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




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Current and Past Policy Initiatives

                                                         Year of     2009/10     2010/11         2011/12         2012/13     2013/14
                                                         First      Budgeted      Budget        Estimated       Estimated   Estimated
Policy Initiative                                        Impact         $000        $000             $000            $000        $000

Current Government

Value for Money (VFM) Departmental Spending              2010/11           -          (20)           (47)           (47))        (47)
Pressures and Savings

Previous Government

Implementing a "Golden Age" Card                         2006/07       1,210         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

                                                                               2009/10                                        2010/11

                                                                         Budgeted            Estimated Actual                  Budget
                                                                             $000                       $000                     $000

Total Appropriation                                                        32,400                     32,400                   36,977

Revenue from Crown                                                         32,236                     32,236                   36,813

Revenue from Other                                                             164                       664                      164



Reasons for Change in Appropriation
The increase in this appropriation is largely due to additional funding to implement the Student Support
Savings package.

Output Performance Measures and Standards

                                                                               2009/10                                        2010/11

                                                                         Budgeted            Estimated Actual                  Budget
Performance Measures                                                     Standard                   Standard                 Standard

Student Allowances and Student Loans

The percentage of surveyed students satisfied with the quality of         80-85%                     80-85%                    85-90%
service provided will be no less than:




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                                                                                         2009/10                                          2010/11
                                                                                  Budgeted               Estimated Actual                  Budget
Performance Measures                                                              Standard                      Standard                 Standard

Student Allowances

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

The initial entitlement assessment for a Student Allowance will                          90%                        90%                    90-95%
be completed within five working days of application receipt
Student Loans

The percentage of students who receive their correct Student                             95%                        95%                       95%
Loan entitlement (living cost component) on their first payment
will be no less than
The initial entitlement assessment for a Student Loan will be                            90%                        90%                    90-95%
completed within three working days of application receipt



Conditions on Use of Appropriation

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     The Ministerial Direction In Relation To Emergency Benefit And Benefits On Ground Of
Benefit And Benefits On Ground Of Hardship         Hardship provides that students may be eligible for Unemployment Benefit Student
pursuant to section 5 of the Social Security Act   Hardship if they meet certain criteria.
1964
Student Allowance Regulations 1998 pursuant        Student Allowances are governed by the Student Allowance Regulations 1998 and are paid
to sections 303, 306, and 307 of the Education     to assist eligible students with their living expenses whilst they undertake full-time study.
Act 1989



Current and Past Policy Initiatives

                                                          Year of           2009/10        2010/11           2011/12         2012/13     2013/14
                                                          First            Budgeted         Budget          Estimated       Estimated   Estimated
Policy Initiative                                         Impact               $000           $000               $000            $000        $000

Current Government

Value for Money (VFM) Departmental Spending               2010/11                    -          (100)           (239)           (239)       (239)
Pressures and Savings
Return of Balance Sheet Cash - Retain Associated          2010/11                    -            (55)           (55)            (55)        (55)
Capital Charge

Student Support Savings Package                           2010/11                    -          4,584           3,142          3,672       3,712

Student Job Search and Additional Job Ops Places          2009/10               (150)                -              -               -           -

Reversing Unfunded Budget 2008 Commitments for            2009/10               (935)          (1,131)        (1,254)         (1,286)     (1,286)
Economic Transformation: Innovation
Previous Government

Expansion of Bonded Merit Scholarship Scheme              2008/09                130              170            215             215         215

Increasing the student allowance parental income          2008/09                690              745            775             775         775
threshold by 10%




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                                                        Year of    2009/10      2010/11          2011/12         2012/13     2013/14
                                                        First     Budgeted       Budget         Estimated       Estimated   Estimated
Policy Initiative                                       Impact        $000         $000              $000            $000        $000
Lowering the age limit for student allowance parental   2008/09        950           995            1,045          1,045       1,045
income testing by one year

Expansion and Redesign of Step Up Scholarships          2007/08        503           527             527             527         527

Increasing the Student Allowances Parental Income       2007/08        116           119             119             119         119
Threshold by 10%

Adjust the Student Allowances Personal Income           2005/06        187           187             187             187         187
Threshold and Abatement Regime
Enhance and Extend the Integrated Data Set of           2005/06         80              80             80             80          80
Student Loan Scheme Borrowers

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    2005/06        116           116             116             116         116
Families with More than One Student

Introduce a Parental Income Threshold Disregard for     2005/06        213           213             213             213         213
Separated Parents

Introduce Bonded Merit Scholarships                     2005/06        311           311             311             311         311



Policy Advice and Support to Ministers MCOA (M63)

Scope of Appropriation
 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.
 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.



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

                                                                              2009/10                                         2010/11

                                                                       Budgeted              Estimated Actual                  Budget
                                                                           $000                         $000                     $000
Total Appropriation                                                       44,561                      44,561                   47,847

Crown Entity Monitoring                                                       337                        337                      337

Social Policy Advice                                                      44,224                      44,224                   47,510




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                                                                                2009/10                                 2010/11

                                                                          Budgeted        Estimated Actual               Budget
                                                                              $000                   $000                  $000
Revenue from Crown                                                          43,016                 43,016                46,302
Crown Entity Monitoring                                                        337                    337                   337
Social Policy Advice                                                        42,679                 42,679                45,965
Revenue from Other                                                            1,545                 2,045                 1,545
Crown Entity Monitoring                                                           -                      -                     -
Social Policy Advice                                                          1,545                 2,045                 1,545


Reasons for Change in Appropriation
The increase in the Social Policy Advice output class output class is largely due to the transfer of
Historical Claims funding ($5 million) from 2009/10 to 2010/11.

Output Performance Measures and Standards
                                                                                2009/10                                 2010/11
                                                                          Budgeted        Estimated Actual               Budget
Performance Measures                                                      Standard               Standard              Standard
Social Policy Advice Output Class
Policy advice will be delivered in accordance with work                Standard met          Standard met Standard met (see note
programmes agreed with their respective Ministers (see Note 8)                                                                9)
An audit (see Notes 10 and 11) shows that the Ministry of Social       90% of cases          90% of cases          90% of cases
Development's policy and research processes as outlined in the
Quality Management System (see Note 12) have been followed
in at least
An external independent review of the Ministry of Social               Standard met          Standard met Standard met (see Note
Development's policy advice confirms that it meets acceptable                                                                14)
standards based on pre-determined criteria (see Note 13)
Ministerial Servicing Output
The percentage of all drafts provided for the Minister's signature
that are factually accurate, meet any legislative requirements,
and contain no avoidable errors will be no less than:
•     Ministerial correspondence replies                                       95%                   95%                   95%

•     Parliamentary question responses                                       100%                   100%                  100%

•     Ministerial Official Information Act request replies                   100%                   100%                  100%

•     Select Committee Estimates examination responses                       100%                   100%                  100%
The percentage of all drafts provided for the Minister's signature
within the following timeframes will be no less than:
•     Ministerial correspondence replies completed within 20                   95%                   95%                   95%
      working days of receipt by the Ministry, unless otherwise
      agreed
•     Parliamentary question responses provided to the Minister's            100%                   100%                  100%
      office so that answers can meet the timeframe set in
      Parliamentary Standing Orders
•     Ministerial Official Information Act request replies completed         100%                   100%                  100%
      five days prior to the statutory time limit, unless otherwise
      agreed
•     Responses to Select Committee examinations provided to                 100%                   100%                  100%
      the Minister's office so that answers can meet the timeframe
      set by the Committee(s)




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                                                                                      2009/10                                      2010/11
                                                                                Budgeted         Estimated Actual                    Budget
Performance Measures                                                            Standard                Standard                   Standard
Crown Entity Monitoring Output Class

Provide advice to the Minister on the development of Crown                             10                     10                        10
entity statements of intent and output agreements
Provide monitoring advice on each Crown entity's performance                 Minimum 10              Minimum 10            Minimum of 10
reports against their statements of intent and output agreements

Provide advice to the Minister on Crown entity and Statutory                Standard met            Standard met Standard met (see Note
Board appointments, as required                                                                                                     15)
The percentage of all reports provided to the Minister that are                      95%                     95%                       95%
factually accurate, meet any legislative requirements, and
contain no avoidable errors will be no less than

Purchase advice will be delivered to Ministers within negotiated                    100%                   100%                      100%
deadlines will be no less than

Advice to Ministers on draft statements of intent for the five                      100%                   100%                      100%
Crown entities for the next year is provided by no later than
31 May 2011 will be no less than
Advice to Ministers on draft output agreements (see Note 16) for                    100%                   100%                      100%
the five Crown entities for the next year is provided by no later
than 30 June 2011 will be no less than

Performance reports are reviewed no later than 20 working days                      100%                   100%                      100%
from receipt of the final Crown entity reports will be no less than


Note 8 - The Ministers who receive services are the Minister for Social Development and Employment,
the Minister for Disability Issues, and the Minister for the Community and Voluntary Sector.
Note 9 - Standard met means that we have received confirmation from the Ministers via their offices that
advice has been delivered in accordance with a work programme.
Note 10 - The work in relation to the internal audit, review or survey for these measures is conducted
during the year and reported on an annual basis.
Note 11 - Under the audit, a random sample of reports is presented to the Minister over the year to
assess if they comply with minimum standards.
Note 12 - 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).
Note 13 - As set out in the Cabinet Guidelines.
Note 14 - The standard for this measure is based on a continuum of standard not met, standard met and
standard exceeded.
Note 15 - Standard met means that all appointments identified in the report to Cabinet at the start of each
calendar year are actioned as agreed with the Minister.
Note 16 - Output agreement also refers to memoranda of understanding where funding is not paid via
Vote Social Development.

Conditions on Use of Appropriation

Reference                                           Conditions

Work Programme                                      Work programme includes the Minister for Social Development and Employment's
                                                    Delivering our Priorities letter to the Prime Minister dated December 2009.




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Current and Past Policy Initiatives

                                                       Year of    2009/10        2010/11          2011/12         2012/13     2013/14
                                                       First     Budgeted         Budget         Estimated       Estimated   Estimated
Policy Initiative                                      Impact        $000           $000              $000            $000        $000

Current Government

Value for Money (VFM) Departmental Spending            2010/11           -            (94)           (226)           (226)       (226)
Pressures and Savings

NZ Productivity Commission                             2010/11           -            (70)           (140)           (150)       (150)

Return of Balance Sheet Cash - Retain Associated       2010/11           -            (70)            (70)            (70)        (70)
Capital Charge

Family Violence Whānau Ora Fund                        2009/10        (60)            (60)            (60)            (60)        (60)

Strengthening Relationships: Government, and the       2009/10        400             400             400                -           -
Community and Voluntary Sector

Carers Strategy Information Pack for informal carers   2009/10        130                80             80             80          80

Previous Government

Longitudinal Study of New Zealand Children and         2008/09      4,750            3,100               -               -           -
Families
Out of School Services Five-Year Action Plan: Revised 2007/08         335             335             355             335         335
Recommendations

Working New Zealand: Work-Focused Support:             2007/08        504             297             297             297         297
Support and Services
Reducing Violence Within Families                      2006/07        295                 -              -               -           -

Disabled Persons Nomination Register                   2005/06        142             142             142             142         142



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

                                                                               2009/10                                         2010/11

                                                                      Budgeted                Estimated Actual                  Budget
                                                                          $000                           $000                     $000

Total Appropriation                                                          4,381                      4,381                     4,673

Revenue from Crown                                                           3,767                      3,767                     4,059

Revenue from Other                                                            614                         614                      614



Reasons for Change in Appropriation
This appropriation increased because a fiscally neutral reallocation of overheads was larger in 2009/10
than in 2010/11.




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Output Performance Measures and Standards

                                                                                       2009/10                                          2010/11

                                                                                Budgeted               Estimated Actual                  Budget
Performance Measures                                                            Standard                      Standard                 Standard

At least 95 per cent of key stakeholders (see Note 17) will have            New measure                  New measure                   95-100%
been engaged with each year


Note 17 - Key stakeholders include: New Zealand Police, District Health Board, Ministry of Health, and
Ministry of Education, ACC and Office of Children's Commissioner, key NGO providers, Ministry of
Justice and Department of Corrections.

Conditions on Use of Appropriation

Reference                                         Conditions

Children, Young Persons, and Their Families       Part 1 section 7 of the Children, Young Persons, and Their Families Act 1989 sets out the
Act 1989                                          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

                                                          Year of          2009/10        2010/11          2011/12         2012/13     2013/14
                                                          First           Budgeted         Budget         Estimated       Estimated   Estimated
Policy Initiative                                         Impact              $000           $000              $000            $000        $000
Current Government

Value for Money (VFM) Departmental Spending               2010/11                  -             (8)           (19)            (19)        (19)
Pressures and Savings
Previous Government

Child, Youth and Family Draw Down of Contingency          2007/08               130           130              130             130         130
Funds for Settlement of Collective Agreement




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Promoting Positive Outcomes for Disabled People (M23)

Scope of Appropriation
 This appropriation is limited to promoting positive outcomes for disabled people and comprises of:
 enabling the involvement of disabled people in the monitoring and implementation of the United Nations
 Convention on the Rights of Disabled Persons; and changing negative attitudes towards disabled
 people.



Expenses and Revenue

                                                                              2009/10                                         2010/11

                                                                        Budgeted            Estimated Actual                   Budget
                                                                            $000                       $000                      $000

Total Appropriation                                                             -                          -                     1,250

Revenue from Crown                                                              -                          -                     1,250

Revenue from Other                                                              -                          -                             -



Reasons for Change in Appropriation
This is a new appropriation in 2010/11.

Output Performance Measures and Standards

                                                                              2009/10                                         2010/11

                                                                        Budgeted            Estimated Actual                   Budget
Performance Measures                                                    Standard                   Standard                  Standard

A monitoring report by disabled people on their rights under the    New measure               New measure        1 report (see Note 18)
United Nations Convention on the Rights with Persons with
Disabilities

The number of partners engaged to promote positive attitudes        New measure               New measure                            4
with whom agreements are established will be no fewer than
National and community-driven projects funded                       New measure               New measure                          4-6


Note 18 - Based on 50-100 interviews with disabled people.

Current and Past Policy Initiatives

                                                         Year of    2009/10     2010/11         2011/12         2012/13     2013/14
                                                         First     Budgeted      Budget        Estimated       Estimated   Estimated
Policy Initiative                                        Impact        $000        $000             $000            $000        $000

Current Government

Improving Attitudes Towards Disabled People              2010/11          -         1,000          1,000          1,000              -

Monitoring the UN Convention on the Rights of People     2010/11          -          250            250             250              -
with Disabilities




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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

                                                                                         2009/10                                          2010/11

                                                                                   Budgeted           Estimated Actual                     Budget
                                                                                       $000                      $000                        $000

Total Appropriation                                                                   35,453                    35,453                     36,672

Revenue from Crown                                                                    35,107                    35,107                     36,326

Revenue from Other                                                                       346                        346                       346



Reasons for Change in Appropriation
This appropriation increased mainly because a one-off fiscally neutral transfer reduced the appropriation
in 2009/10.

Output Performance Measures and Standards

                                                                                         2009/10                                          2010/11
                                                                                   Budgeted           Estimated Actual                     Budget
Performance Measures                                                               Standard                  Standard                    Standard

Of all the cases we prosecute, the percentage of successful                             90%                        90%                       95%
prosecutions concluded will exceed
The percentage of cases referred to the National Fraud                         New measure               New measure                     95-100%
Investigators that are "fully investigated" (see Note 19) is
between
The percentage of cases (see Note 20) completed within a 12                             95%                        95%                       95%
month period will be no less than


Note 19 - Response categories range from 'Closed', 'no further action' to 'full investigation'.
Note 20 - This includes cases referred by all sources for further enquiry for example, fraud allegations
and data matches.

Conditions on Use of Appropriation

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 The Education Act 1989 and the Student Allowances Regulations 1998 provide for the
Regulations 1998 pursuant to sections 303, 306, investigation of Student Allowance and Student Loan applications.
and 307 of the Education Act 1989

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.




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Current and Past Policy Initiatives

                                                         Year of    2009/10     2010/11        2011/12         2012/13     2013/14
                                                         First     Budgeted      Budget       Estimated       Estimated   Estimated
Policy Initiative                                        Impact        $000        $000            $000            $000        $000

Current Government

Value for Money (VFM) Departmental Spending              2010/11          -        (119)         (282))           (282)       (282)
Pressures and Savings

Return of Balance Sheet Cash - Retain Associated         2010/11          -         (75)           (75)            (75)        (75)
Capital Charge



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

                                                                              2009/10                                       2010/11

                                                                        Budgeted           Estimated Actual                  Budget
                                                                            $000                      $000                     $000
Total Appropriation                                                      440,004                   440,004                  431,130

Revenue from Crown                                                       425,546                   425,546                  416,672

Revenue from Other                                                        14,458                    14,958                   14,458



Reasons for Change in Appropriation
The decrease in this appropriation is largely due to a reduction in funding in 2010/11 for Work and Income
volume pressures compared with funding in 2009/10 and one off funding in 2009/10 to meet increased
costs. This was partially offset by increased funding for the Limited Service Volunteer Programme in
2010/11 compared with 2009/10.

Output Performance Measures and Standards

                                                                              2009/10                                       2010/11

                                                                        Budgeted           Estimated Actual                  Budget
Performance Measures                                                    Standard                  Standard                 Standard

Jobseekers not coming onto a benefit

The proportion of Work for You seminar (see Note                         30-35%                    30-35%                    35-40%
21) attendees who do not require a benefit within 28 days of
attending the seminar will be




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                                                                               2009/10                                           2010/11
                                                                         Budgeted              Estimated Actual                    Budget
Performance Measures                                                     Standard                     Standard                   Standard

Sustainable employment

The average cumulative time that UB jobseekers, who exit a               35 weeks                    35 weeks                 36-38 weeks
main benefit into work, spend in employment over the course of
a year (see Note 22) will be

The average cumulative time that work-ready DPB (see Note                39 weeks                    39 weeks                 36-39 weeks
23) and SB clients, who exit a main benefit into work, spend in
employment over the course of a year will be
The proportion of UB jobseekers who exit a main benefit into              53-55%                       53-55%                     55-57%
employment and achieve six months employment will be

The proportion of work-ready DPB and SB clients who exit a                59-61%                       59-61%                     59-61%
main benefit into employment and achieve six months
employment will be

Benefit entitlement

The percentage of entitlement assessments completed                            90%                        90%                        90%
accurately will be no less than (see Note 24)

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


Note 21 - The work-focused Job Search Service is aimed at helping people get a job rather than needing
a benefit. Jobseekers applying for a benefit are generally required to attend a Work for You seminar
where they are assisted with their job-search skills and advised of their responsibilities and obligations.
Note 22 - This measures the total number of weeks a client is in employment through a 12 month period
following exit from a core benefit up to 24 months prior.
Note 23 - DPB clients include DPB-Sole Parent, DPB-Women Alone, Widow's Benefit and Emergency
Maintenance Allowance.
Note 24 - An assessment of benefit entitlement is deemed accurate when the assessment is financially
correct, which means that the right person is receiving the correct benefit, at the correct rate and from the
correct commencement date.

Current and Past Policy Initiatives

                                                          Year of    2009/10     2010/11           2011/12         2012/13      2013/14
                                                          First     Budgeted      Budget          Estimated       Estimated    Estimated
Policy Initiative                                         Impact        $000        $000               $000            $000         $000

Current Government

Value for Money (VFM) Departmental Spending               2010/11          -         (1,480)        (3,534)         (3,534)      (3,534)
Pressures and Savings

Return of Balance Sheet Cash - Retain Associated          2010/11          -         (1,000)        (1,000)         (1,000)      (1,000)
Capital Charge
Limited Service Volunteer Programme                       2009/10      4,750          9,500           4,750               -            -

Work and Income Volumes Pressures                         2009/10     17,200         12,600           9,200               -            -




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                                                        Year of      2009/10     2010/11          2011/12         2012/13     2013/14
                                                        First       Budgeted      Budget         Estimated       Estimated   Estimated
Policy Initiative                                       Impact          $000        $000              $000            $000        $000
Previous Government

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 2007/08           315            315            315             315         315
Recommendations

Working New Zealand: Work-Focused Support and           2007/08       14,652         14,652         14,652         14,652      14,652
Services
Implementing Free Early Childhood Education             2006/07        1,058          1,058          1,058          1,058       1,058

Accommodation Supplement (Retirement Villages)          2005/06          23              23             23             23          23

Automated Reassessment of Accommodation                 2005/06        (572)          (572)          (572)           (572)       (572)
Supplement Entitlement in Line with the Annual
General Adjustment

Early Intervention for Vulnerable Children - Family Start 2005/06       280            280            280             280         280
Access to Early Education
Enhancing Parents' Work Choices                         2005/06         680            680            680             680         680

New Services for Sickness and Invalid's Benefit         2005/06        1,053          1,053          1,053          1,053       1,053
Recipients
New Services for Sickness and Invalid's Benefit         2005/06        2,228          2,228          2,228          2,228       2,228
Recipients



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

                                                                               2009/10                                         2010/11

                                                                         Budgeted             Estimated Actual                  Budget
                                                                             $000                        $000                     $000
Total Appropriation                                                        86,024                      86,024                   85,635

Revenue from Crown                                                         86,024                      86,024                   85,635

Revenue from Other                                                               -                           -                           -



Reasons for Change in Appropriation
The decrease in this appropriation is largely due to additional funding in 2008/09 only.




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Output Performance Measures and Standards

                                                                                     2009/10                                          2010/11
                                                                            Budgeted                 Estimated Actual                  Budget
Performance Measures                                                        Standard                        Standard                 Standard

The proportion of programmes delivered by NZQA registered                          100%                        100%                     100%
and accredited training providers will be no less than
The percentage of learners who move on to employment or                             60%                         60%                       60%
further tertiary training outside of Training Opportunities within
two months of leaving the programme will be no less than

The percentage of training providers monitored and programme                       100%                        100%                     100%
performance evaluated including outcome achievement will be
no less than

The average number of learners in training at any one time will                    7,000                       7,000                     7,000
be



Current and Past Policy Initiatives

                                                             Year of    2009/10        2010/11           2011/12         2012/13     2013/14
                                                             First     Budgeted         Budget          Estimated       Estimated   Estimated
Policy Initiative                                            Impact        $000           $000               $000            $000        $000

Previous Government

Expanding the Community Organisation Grants                  2008/09     (2,192)           (2,065)        (2,065)         (2,065)     (2,065)
Scheme

Supporting a Sustainable NGO Social Services Sector: 2008/09             (5,581)           (5,581)        (5,581)         (5,581)     (5,581)
Net Operating Impact (Pathway to Partnership)



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

                                                                                     2009/10                                          2010/11

                                                                            Budgeted                 Estimated Actual                  Budget
                                                                                $000                            $000                     $000
Total Appropriation                                                          119,634                         119,634                  137,399

Revenue from Crown                                                           119,237                         119,237                  137,002

Revenue from Other                                                                  397                        1,897                      397




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Reasons for Change in Appropriation
This increase in this appropriation is largely due to increased funding for A Fresh Start for Young
Offenders in 2010/11 compared with 2009/10, and a Budget 2008 decision to increase funding for the
Youth Justice Central Residential facility in 2010/11 compared with 2009/10.

Output Performance Measures and Standards

                                                                                     2009/10                                          2010/11

                                                                              Budgeted               Estimated Actual                  Budget
Performance Measures                                                          Standard                      Standard                 Standard

Youth Justice Safety and Belonging

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

Percentage of Youth Justice Family Group Conferences are                      95-100%                       95-100%                   95-100%
held within statutory timeframes (unless there are special
reasons for delay)
Youth Justice Changing Behaviour and Enhancing
Wellbeing

Percentage of Youth Justice Family Conference Plans reviewed                         90%                        90%                   95-100%
on time



Conditions on Use of Appropriation

Reference                                       Conditions

Children, Young Persons, and Their Families     Part 4 of the Children, Young Persons, and Their Families Act 1989 provides for social work
Act 1989                                        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

                                                       Year of           2009/10       2010/11           2011/12         2012/13     2013/14
                                                       First            Budgeted        Budget          Estimated       Estimated   Estimated
Policy Initiative                                      Impact               $000          $000               $000            $000        $000
Current Government

Value for Money (VFM) Departmental Spending            2010/11                   -          (311)           (741)           (741)       (741)
Pressures and Savings
Reducing Youth Offending Programme                     2010/11                   -          1,400           1,400          1,400       1,400

Return of Balance Sheet Cash - Retain Associated       2010/11                   -          (200)           (200)           (200)       (200)
Capital Charge
Fresh Start for Young People                           2009/10               (75)          (3,000)        (3,000)         (3,000)     (3,000)

Time Limited Programmes to Support Families,           2009/10              1,400                -              -               -           -
Children and Young People at Risk
A Fresh Start for Young Offenders                      2009/10              8,684          22,360         22,050          22,050      22,050

Operating Funding for Additional Beds at Youth Justice 2009/10              1,309           1,309           2,617          2,617       2,617
Central Residences




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                                                       Year of       2009/10        2010/11      2011/12       2012/13       2013/14
                                                       First        Budgeted         Budget     Estimated     Estimated     Estimated
Policy Initiative                                      Impact           $000           $000          $000          $000          $000
Previous Government

Youth Justice Central Residential Facility            2008/09           6,754        11,089        11,089        11,089        11,089

Child, Youth and Family Draw Down of Contingency       2007/08          1,864         1,864         1,864         1,864         1,864
Funds for Settlement of Collective Agreement

Increases in Personnel Costs Arising from              2005/06            397           397           397           397           397
Amendments to the Holidays Act 2003



Part 2.2 - Non-Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes or Objectives of Appropriations        Appropriations

More people get into work and stay in work                        Assistance to Disadvantaged Persons, Life Skills and Employment
                                                                  Related Training Activities, Student Placement Services, and
                                                                  Vocational Services for People with Disabilities.

More children are safe                                            Assistance to Disadvantaged Persons, Children's Commissioner,
                                                                  Counselling and Rehabilitation Services, Education and Prevention
                                                                  Services, Families Commission, Family Wellbeing Services, and
                                                                  Strengthening Providers and Communities.
More young people stay on track                                   Assistance to Disadvantaged Persons, Children's
                                                                  Commissioner, Families Commission, Family Wellbeing Services, Life
                                                                  Skills and Employment Related Training Activities, Strengthening
                                                                  Providers and Communities, Student Placement Services, and
                                                                  Vocational Services for People with Disabilities.

Reduced re-offending by young people                              Assistance to Disadvantaged Persons, Children's Commissioner,
                                                                  Counselling and Rehabilitation Services, Education and Prevention
                                                                  Services, Families Commission, Family Wellbeing Services, Life Skills
                                                                  and Employment Related Training Activities, Strengthening Providers
                                                                  and Communities, Student Placement Services, and Vocational
                                                                  Services for People with Disabilities.

Improved quality of life for older people                         Assistance to Disadvantaged Persons, and Retirement
                                                                  Commissioner.

Communities are better able to support themselves                 Connected Communities, Counselling and Rehabilitation Services,
                                                                  Education and Prevention Services, Families Commission, Family
                                                                  Wellbeing Services, Strengthening Providers and
                                                                  Communities, Strong Families, and Student Placement Services.


For further information on the intended impacts, outcomes and objectives of the non-departmental output
expense appropriations, please see the Statements of Intent for the Children's Commissioner, the
Families Commission and the Retirement Commissioner.




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Assistance to Disadvantaged Persons (M63)

Scope of Appropriation
 This appropriation is limited to the provision of resources and assistance to disadvantaged and disabled
 people in the community and comprises: distribution of talking books and articles for the blind;
 advocacy assistance to people seeking entitlements from government agencies; and supporting and
 promoting the development of more houses accessible by disabled and older people.



Expenses

                                                                                  2009/10                                          2010/11

                                                                          Budgeted              Estimated Actual                    Budget
                                                                              $000                         $000                       $000
Total Appropriation                                                              950                        950                      1,450



Reasons for Change in Appropriation
The increase in this appropriation is due to additional funding for Lifetime Design Homes.

Output Performance Measures and Standards

                                                                                  2009/10                                          2010/11
                                                                          Budgeted              Estimated Actual                    Budget
Performance Measures                                                      Standard                     Standard                   Standard

The number of talking books delivered and returned will be no              370,000                      370,000       330,000 (see Note 25)
fewer than
The number of articles for the blind delivered will be no fewer                 8,000                     8,000                      8,000
than

Provide advocacy services in each of the Work and Income                          11                           11                       11
regions will be no fewer than

Complete a business plan to make the design standard brand            New measure                 New measure                                1
self-sustaining


Note 25 - The reduction in Talking Book volumes is due to the Royal New Zealand Foundation for the
Blind transitioning to digital recordings which enables multiple titles to be delivered on one postal item.

Current and Past Policy Initiatives

                                                           Year of    2009/10       2010/11         2011/12          2012/13     2013/14
                                                           First     Budgeted        Budget        Estimated        Estimated   Estimated
Policy Initiative                                          Impact        $000          $000             $000             $000        $000

Current Government

Government Partnership with Lifetime Design Homes          2010/11          -            500            500              500             -

Opportunities for Young People During the Economic         2009/10      (500)           (500)              -                -            -
Downturn
Student Job Search and Additional Job Ops Places           2009/10          -               -          (500)            (500)       (500)

Previous Government

Funding for the Red Cross                                  2005/06       500             500            500              500          500




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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

                                                                                        2009/10                                      2010/11

                                                                                 Budgeted           Estimated Actual                  Budget
                                                                                     $000                      $000                     $000

Total Appropriation                                                                  2,157                     2,157                    2,157



Output Performance Measures and Standards

                                                                                        2009/10                                      2010/11
                                                                                 Budgeted           Estimated Actual                  Budget
Performance Measures                                                             Standard                  Standard                 Standard

Number of Child, Youth and Family site visits undertaken                     New measure              New measure                            6

Number of performance reports on Child, Youth and Family                     New measure              New measure                            6
sites completed and delivered to the Deputy Chief Executive of
the Ministry of Social Development responsible for Child, Youth
and Family
Number of Child, Youth and Family residence visits undertaken                New measure              New measure                            8

Number of performance reports on Child, Youth and Family                     New measure              New measure                            8
residences completed and delivered to the Deputy Chief
Executive of the Ministry of Social Development responsible for
Child, Youth and Family
Monitoring of Child, Youth and Family complies with agreed                   New measure              New measure                       100%
standards and processes established by the Memorandum of
Understanding between the Office and Child, Youth and Family,
reported against in the site and residence reports
Submissions, reports and advice produced within required                     New measure              New measure                       100%
timeframe where information is clear, accurate and accessible

Respondents' satisfaction with the advice and information                    New measure              New measure                        80%
provided via the Child Rights Line is rated as satisfactory or
better



Conditions on Use of Appropriation

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         The Children, Young Persons, and Their Families Act 1989 provides for the wellbeing of
Act 1989                                            children, young persons, and their families and family groups.




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Reference                                       Conditions

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.

Output Agreement                                Outlines the commitments and standards required.


Current and Past Policy Initiatives

                                                       Year of            2009/10        2010/11          2011/12         2012/13     2013/14
                                                       First             Budgeted         Budget         Estimated       Estimated   Estimated
Policy Initiative                                      Impact                $000           $000              $000            $000        $000

Current Government

Transfer of Funds from Families Commission to          2009/10                 400            400             400             400          400
Children's Commissioner

Previous Government

Children's Commissioner: Operating Pressures           2005/06                  71               71             71             71           71



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

                                                                                       2009/10                                         2010/11

                                                                               Budgeted               Estimated Actual                  Budget
                                                                                   $000                          $000                     $000

Total Appropriation                                                                  4,109                      4,109                     4,753


Reasons for Change in Appropriation
The increase in this appropriation is largely due to additional funding to expand the Settling In
programme.

Output Performance Measures and Standards

                                                                                       2009/10                                         2010/11

                                                                               Budgeted               Estimated Actual                  Budget
Performance Measures                                                           Standard                      Standard                 Standard

Settling In

The number of refugee and migrant projects funded each year                New measure                  New measure                       20-25
will be between




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                                                                                        2009/10                                       2010/11
                                                                                 Budgeted            Estimated Actual                  Budget
Performance Measures                                                             Standard                   Standard                 Standard

Sector Co-ordination and Capability

The number of provider organisations who receive capability                  New measure               New measure                    500-600
support will be between


Current and Past Policy Initiatives

                                                          Year of           2009/10       2010/11        2011/12         2012/13     2013/14
                                                          First            Budgeted        Budget       Estimated       Estimated   Estimated
Policy Initiative                                         Impact               $000          $000            $000            $000        $000
Current Government

Expansion of the Settling in Programme                    2010/11                   -          556           582             582               -

Family Violence Whānau Ora Fund                           2009/10              (721)         (721)          (721)           (721)       (721)



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

                                                                                        2009/10                                       2010/11

                                                                                 Budgeted            Estimated Actual                  Budget
                                                                                     $000                       $000                     $000
Total Appropriation                                                                 17,739                    17,739                   17,859


Output Performance Measures and Standards

                                                                                        2009/10                                       2010/11

                                                                                 Budgeted            Estimated Actual                  Budget
Performance Measures                                                             Standard                   Standard                 Standard

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


Conditions on Use of Appropriation

Reference                                          Conditions

Children, Young Persons, and Their Families        Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can
Act 1989                                           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.




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Current and Past Policy Initiatives

                                                          Year of           2009/10        2010/11         2011/12         2012/13     2013/14
                                                          First            Budgeted         Budget        Estimated       Estimated   Estimated
Policy Initiative                                         Impact               $000           $000             $000            $000        $000

Current Government

Review of Contracted Services                             2010/11                  -           (182)          (182)           (182)       (182)

Previous Government

Care and Protection System Service Response to            2006/07               988             988            988             988         988
Demand



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

                                                                                         2009/10                                        2010/11

                                                                                 Budgeted              Estimated Actual                  Budget
                                                                                     $000                         $000                     $000
Total Appropriation                                                                    9,184                     9,184                     8,762


Reasons for Change in Appropriation
The decrease in this appropriation is largely due savings identified in the Review of Contracted Services.

Output Performance Measures and Standards

                                                                                         2009/10                                        2010/11
                                                                                 Budgeted              Estimated Actual                  Budget
Performance Measures                                                             Standard                     Standard                 Standard

Percentage of clients completing an intervention                                  75-85%                       75-85%                    80-90%


Conditions on Use of Appropriation

Reference                                          Conditions

Children, Young Persons, and Their Families        The general duties of the Chief Executive as set out in section 7 of the Children, Young
Act 1989                                           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.




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Current and Past Policy Initiatives

                                                           Year of    2009/10       2010/11         2011/12         2012/13     2013/14
                                                           First     Budgeted        Budget        Estimated       Estimated   Estimated
Policy Initiative                                          Impact        $000          $000             $000            $000        $000

Current Government

Review of Contracted Services                              2010/11          -           (563)          (563)           (563)       (563)

Previous Government

Care and Protection System Service Response to             2006/07       363             363            363             363         363
Demand



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

                                                                                  2009/10                                        2010/11

                                                                          Budgeted              Estimated Actual                  Budget
                                                                              $000                         $000                     $000
Total Appropriation                                                             7,770                     7,770                     7,770



Output Performance Measures and Standards

                                                                                  2009/10                                        2010/11
                                                                          Budgeted              Estimated Actual                  Budget
Performance Measures                                                      Standard                     Standard                 Standard

All published research reports are formally peer reviewed by at       New measure                 New measure                      100%
least one external expert and one internal expert in the field of
study and comments incorporated into the final report where
appropriate
Research reports from awarded research fund grants are                New measure                 New measure                        95%
available for release within 60 business working days of
completion of final report from grant recipient

Reported events held nationwide for White Ribbon Day 2010,            New measure                 New measure                     90-100
that promotes intolerance of violence towards woman




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Conditions on Use of Appropriation

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.

Output Agreement                                Outlines the commitment and standards required.



Current and Past Policy Initiatives

                                                        Year of            2009/10         2010/11         2011/12         2012/13     2013/14
                                                        First             Budgeted          Budget        Estimated       Estimated   Estimated
Policy Initiative                                       Impact                $000            $000             $000            $000        $000

Current Government

Transfer of Funds from Families Commission to           2009/10                (400)           (400)          (400)           (400)       (400)
Children's Commissioner



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

                                                                                         2009/10                                        2010/11
                                                                                Budgeted               Estimated Actual                  Budget
                                                                                    $000                          $000                     $000

Total Appropriation                                                                69,573                       69,573                    71,028

Children's Health Camps                                                            13,975                       13,975                    13,975

Social Workers in Schools                                                          10,148                       10,148                    10,310

Multi-Agency Support Services in Secondary Schools                                     1,992                     1,992                     2,024



Reasons for Change in Appropriation
The increase in this appropriation is mainly due to additional funding for the Teen Parents Programme of
Action and a fiscally neutral transfer of funding for Consumer Price Index adjustments to some social
service providers. This was partially offset by savings identified in Review of Contracted Services.




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Output Performance Measures and Standards

                                                                                      2009/10                                        2010/11
                                                                               Budgeted             Estimated Actual                  Budget
Performance Measures                                                           Standard                    Standard                 Standard

The number full-time equivalent social workers employed in the                   118-125                    118-125                  118-125
Social Workers in Schools programme will be
The percentage of clients/families completing a planned                          85-90%                     85-90%                    85-90%
intervention will be



Conditions on Use of Appropriation

Reference                                        Conditions

Children, Young Persons, and Their Families      Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can
Act 1989                                         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

                                                          Year of          2009/10       2010/11        2011/12         2012/13     2013/14
                                                          First           Budgeted        Budget       Estimated       Estimated   Estimated
Policy Initiative                                         Impact              $000          $000            $000            $000        $000

Current Government

Children's Health Camps                                   2010/11                 -        1,000           1,000          1,000       1,000

Community Response Model: Teen Parents                    2010/11                 -          893           1,786          1,786       1,786
Programme of Action

Review of Contracted Services                             2010/11                 -         (552)          (552)           (552)       (552)
Previous Government

Care and Protection System Service Response to            2006/07              700           700            700             700         700
Demand




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Life Skills and Employment-Related Training Activities (M63)

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

                                                                                2009/10                             2010/11

                                                                           Budgeted       Estimated Actual           Budget
                                                                               $000                  $000              $000
Total Appropriation                                                             543                   543               543



Output Performance Measures and Standards

                                                                                2009/10                             2010/11
                                                                           Budgeted       Estimated Actual           Budget
Performance Measures                                                       Standard              Standard          Standard

The provision of services within the Eastern Bay of Plenty will be   20 young people      20 young people    20 young people
delivered annually to a minimum of
The percentage of participants aged 16 to 17 years who start           New measure          New measure                75%
either full-time paid employment or further training within eight
weeks of completing training will be no less than

The percentage of participants aged 14 to 15 years who either          New measure          New measure                75%
re-engage in education or a positive alternative activity agreed
by the Ministry within eight weeks of completing training will be
no less than



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

                                                                                2009/10                             2010/11

                                                                           Budgeted       Estimated Actual           Budget
                                                                               $000                  $000              $000

Total Appropriation                                                           5,682                 5,682             5,782




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Output Performance Measures and Standards

                                                                                       2009/10                                          2010/11

                                                                                Budgeted             Estimated Actual                    Budget
Performance Measures                                                            Standard                    Standard                   Standard

Report to the Minister for Social Development and Employment                New measure                New measure        By 31 December 2010
on the review of retirement income policies as required by the
New Zealand Superannuation and Retirement Income Act 2001

The report on the review of retirement income policies meets the            New measure                New measure                         100%
terms of reference set by the Government
The percentage of users of the Sorted resources (see Note                   New measure                New measure                          65%
26) that rate it as useful or better (survey result)


Note 26 - The Retirement Commissioner provides independent financial information through Sorted
resources including www.sorted.org.nz and www.m.sorted.org.nz, as well as printed material.

Conditions on Use of Appropriation

Reference                                        Conditions

New Zealand Superannuation and Retirement        Part 4 of the New Zealand Superannuation and Retirement Income Act 2001 provides for
Income Act 2001                                  the constitution, appointment, functions, powers, and duties of the Commissioner.

Retirement Villages Act 2003                     Part 3 provides for the monitoring and other functions of the Retirement Commissioner.
                                                 Part 4 provides for the Commissioner to approve members eligible for appointment to a
                                                 disputes panel.
                                                 Part 5 provides for the Commissioner to make recommendations to the Minister on any
                                                 draft Code of Practice or variation, and to publish information and receive submissions on
                                                 any Codes of Practice or variation.

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.

Output Agreement                                 Outlines the commitments and standards required.



Current and Past Policy Initiatives

                                                        Year of            2009/10        2010/11        2011/12         2012/13      2013/14
                                                        First             Budgeted         Budget       Estimated       Estimated    Estimated
Policy Initiative                                       Impact                $000           $000            $000            $000         $000

Previous Government

KiwiSaver Financial Education Programme                 2008/09               1,900          2,000          2,000          2,000          2,000

Retirement Village Dispute Panel Functions and          2006/07               (105)          (105)          (105)           (105)         (105)
Registration Fees
Retirement Commissioner - Retirement Villages Act       2005/06                 204            204            204            204            204
2003

Retirement Commissioner Capability                      2005/06                 200            200            200            200            200




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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

                                                                                          2009/10                                          2010/11

                                                                                 Budgeted                 Estimated Actual                  Budget
                                                                                     $000                            $000                     $000
Total Appropriation                                                                     5,885                       5,885                     3,162



Reasons for Change in Appropriation
The decrease in this appropriation is due to savings identified in the Review of Contracted Services.

Output Performance Measures and Standards

                                                                                          2009/10                                          2010/11
                                                                                 Budgeted                 Estimated Actual                  Budget
Performance Measures                                                             Standard                        Standard                 Standard

The percentage of national body organisations who develop,                         80-90%                         80-90%                    80-90%
implement and maintain sector based practice for their members
(eg, supporting a provider to develop new service strategies) will
be



Conditions on Use of Appropriation

Reference                                          Conditions

Children, Young Persons, and Their Families        Under the Children, Young Persons, and Their Families Act 1989 the Chief Executive can
Act 1989                                           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

                                                          Year of            2009/10        2010/11           2011/12         2012/13     2013/14
                                                          First             Budgeted         Budget          Estimated       Estimated   Estimated
Policy Initiative                                         Impact                $000           $000               $000            $000        $000

Current Government

Review of Contracted Services                             2010/11                   -           (2,756)        (3,536)         (3,536)     (3,536)




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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

                                                                              2009/10                                 2010/11

                                                                        Budgeted        Estimated Actual               Budget
                                                                            $000                   $000                  $000
Total Appropriation                                                       101,976               101,976                94,426

Family Start (Early Start)                                                 30,169                30,169                30,652

Budget Services                                                             8,662                 8,662                    8,986

Parents as First Teachers (PAFT)                                            7,161                 7,161                    7,275

Children and Young People Who Witness Family Violence                       4,150                 4,150                    4,217
(Child Advocates)

Family Violence Whānau Ora Fund                                             2,000                 2,000                    2,000

Elder Abuse and Neglect Prevention Services                                 1,732                 1,732                    1,763

Family Services Centres                                                     1,686                 1,686                    1,713

Early Years Service Hubs                                                    1,580                 1,580                    1,605



Reasons for Change in Appropriation
The decrease in this appropriation is largely due to more funding allocated to the Community Response
Contingency in 2010/11 than in 2009/10, the drawdown of funds from the Community Response
Contingency in 2009/10 and a transfer of funds in 2010/11 for community based social services in other
appropriations for the Consumer Price Index adjustment to ensure providers are paid from the same
appropriation as existing contracts.. This was partially offset by more funding in 2010/11 than 2009/10 for
the Pathway to Partnership initiative and new funding for the NGO Quality Services Fund, the Teen
Parents programme of Action and Ring-Fenced Funding for Family Support Services.

Output Performance Measures and Standards

                                                                              2009/10                                 2010/11

                                                                        Budgeted        Estimated Actual               Budget
Performance Measures                                                    Standard               Standard              Standard

Family Start (Early Start)

Between 5,500 to 6,000 families will receive Family Start             5,500-6,000           5,500-6,000           5,500-6,000
Services
Family Start Services will be provided in at least 32 sites across             32                    32                      32
New Zealand

The percentage of families who will receive at least one visit per   New measure           New measure                70-80%
month will be no less than




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                                                                                2009/10                                         2010/11
                                                                         Budgeted             Estimated Actual                   Budget
Performance Measures                                                     Standard                    Standard                  Standard

The percentage of children participating in the Family Start         New measure                New measure                    90-100%
programme who are enrolled with Primary Health Organisations
will be no less than
The percentage of children aged between 18 months and five           New measure                New measure                     50-60%
years participating in the Family Start programme who are
enrolled with early childhood education will be no less than

The percentage of children participating in the Family Start         New measure                New measure                     70-80%
programme who have up-to-date vaccinations will be no less
than

The percentage of children receiving scheduled Well Child visits     New measure                New measure                     65-75%
will be no less than
Parents as First Teachers (PAFT)

The number of families enrolled in each financial year will be       New measure                New measure                  6,000-6,500
between



Current and Past Policy Initiatives

                                                          Year of    2009/10      2010/11         2011/12         2012/13     2013/14
                                                          First     Budgeted       Budget        Estimated       Estimated   Estimated
Policy Initiative                                         Impact        $000         $000             $000            $000        $000

Current Government

Pathway to Partnership Unallocated Funding                2011/12           -             -       (91,786)       (116,266)    (116,266)

Community Response Model: NGO Quality Services            2010/11           -       4,629           13,995         20,565       27,615
Fund
Community Response Model:Teen Parents Programme 2010/11                     -       1,402            2,416          2,416        2,416
of Action

Early Years Service Hubs                                  2010/11           -         524             524             524          524

Review of Contracted Services                             2010/11           -        (561)         (1,130)         (1,240)      (1,288)

Ring-Fenced Funding for Family Support Services           2010/11           -       6,658           17,009         27,294       35,675

Community Response Contingency Drawdown                   2009/10     19,666              -              -               -            -

Family Violence Whānau Ora Fund                           2009/10        879          859             859             859          859

Fresh Start for Young People                              2009/10      1,500        3,000            3,000          3,000        3,000
Increase in Children's Health Camps Funding               2009/10      1,000              -              -               -            -

Time Limited Programmes to Support Families,              2009/10      1,423              -              -               -            -
Children and Young People at Risk
Community Response Contingency: Responding to             2009/10    (12,171)     (57,375)        (24,480)               -            -
Urgent Funding Issues

Previous Government

Supporting a Sustainable NGO Social Services Sector       2008/09     66,847      119,256         175,206         175,206      175,206
(Pathway to Partnership)
Reducing Violence Within Families                         2006/07      1,699          199             199             199          199

Early Intervention for Vulnerable Children - Expansion    2005/06      1,376        1,376            1,376          1,376        1,376
of Family Start
Early Intervention for Vulnerable Children - Family Start 2005/06        786          786             786             786          786
Training and Qualifications




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                                                         Year of            2009/10       2010/11         2011/12         2012/13     2013/14
                                                         First             Budgeted        Budget        Estimated       Estimated   Estimated
Policy Initiative                                        Impact                $000          $000             $000            $000        $000
Early Intervention for Vulnerable Children - Services for 2005/06             3,348           3,348          3,348          3,348       3,348
Children Witnessing Family Violence

Increase in Funding for Elder Abuse and Neglect          2005/06                627            627            627             627         627
Prevention
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

                                                                                        2009/10                                        2010/11

                                                                                Budgeted              Estimated Actual                  Budget
                                                                                    $000                         $000                     $000

Total Appropriation                                                                   4,297                     4,297                     3,512



Reasons for Change in Appropriation
The decrease in this appropriation is due to one-off funding in 2009/10 for an advertising campaign to
create additional jobs for tertiary students over the summer break.

Output Performance Measures and Standards

                                                                                        2009/10                                        2010/11
                                                                                Budgeted              Estimated Actual                  Budget
Performance Measures                                                            Standard                     Standard                 Standard

In 2010/2011 Student Job Search will:

•   connect students to between 160,000 and 165,000 weeks           160,000-165,000 weeks 160,000-165,000 weeks 160,000-165,000 weeks
    of work through the placement of tertiary students in work                     of work               of work               of work
    over the period 1 July 2010 to 30 June 2011

•   through these placements, generate between $67m and                        $67- $72m                   $67- $72m                 $67- $72m
    $72m in earnings for students

•   confirm through an independently-conducted client                             80-85%                      80-85%                    80-85%
    satisfaction survey that 80-85% of student clients are
    satisfied with the service they receive from Student Job
    Search




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Current and Past Policy Initiatives

                                                            Year of         2009/10       2010/11         2011/12         2012/13     2013/14
                                                            First          Budgeted        Budget        Estimated       Estimated   Estimated
Policy Initiative                                           Impact             $000          $000             $000            $000        $000

Current Government

Student Job Search and Additional Job Ops Places            2009/10             785               -              -               -             -



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

                                                                                        2009/10                                         2010/11

                                                                                 Budgeted             Estimated Actual                   Budget
                                                                                     $000                        $000                      $000

Total Appropriation                                                                88,240                      88,240                     86,608

Participation of people with disabilities in employment                            39,540                      39,540                     38,806

Participation of people with disabilities in their communities                     48,700                      48,700                     47,802



Reasons for Change in Appropriation
This appropriation decreased due to savings identified in the Review of Contracted Services which was
partially offset by additional funding for high needs school leavers.

Output Performance Measures and Standards

                                                                                        2009/10                                         2010/11
                                                                                 Budgeted             Estimated Actual                   Budget
Performance Measures                                                             Standard                    Standard                  Standard

The number of individuals placed or supported to remain in                            9,300                     9,300                      9,300
open paid employment will be
The number of people with disabilities who participate in their              New measure                New measure                       10,700
communities

The number of individuals receiving a range of vocational                          20,000                      20,000                     20,000
services will be

Independent reviews to build capacity and quality will be             20 reviews completed    20 reviews completed           20 service providers
completed for




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Conditions on Use of Appropriation

Reference                                             Conditions

Cabinet decision as set out in Pathways to            Pathways to Inclusion sets out the government strategy for vocational services. It aims to
Inclusions: Improving Vocational Services for         increase:
People with Disabilities                              •   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

                                                             Year of            2009/10         2010/11       2011/12        2012/13       2013/14
                                                             First             Budgeted          Budget      Estimated      Estimated     Estimated
Policy Initiative                                            Impact                $000            $000           $000           $000          $000

Current Government

Review of Contracted Services                                2010/11                    -        (2,552)        (2,552)         (2,552)     (2,552)

Previous Government

Disability Allowance for Vocational Services -               2005/06              15,252         15,252         15,252          15,252      15,252
Streamlining payments to Vocational Services
providers and improving service delivery to clients

New Services for Sickness and Invalids' Benefit              2005/06               2,667          2,667          2,667           2,667       2,667
Recipients
Vocational Services for Very High Needs School               2005/06               4,272          4,272          4,272           4,272       4,272
Leavers




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Summary of Service Providers for Non-Departmental Outputs

                                          2009/10            2009/10           2010/11                         Expiry of
                                         Budgeted    Estimated Actual           Budget Reporting               Funding
Provider                                     $000               $000              $000 Mechanism            Commitment

Crown entities

Children's Commissioner

•     Children's Commissioner               2,157              2,157             2,157 Office of the           Ongoing
                                                                                       Children's
                                                                                       Commission
                                                                                       Annual Report
Families Commission

•     Families Commission                   7,770              7,770             7,770 Families                Ongoing
                                                                                       Commission
                                                                                       Annual Report

Retirement Commission

•     Retirement Commission                 5,682              5,682             5,782 Retirement              Ongoing
                                                                                       Commission
                                                                                       Annual Report

Non-government organisations

Intellectual Disability
Empowerment in Action
(IDEA) Services Limited

•     Family Wellbeing Services               138                138              138 Section 32A report
      (part)

•     Strong Families (part)                   24                 24               12 Section 32A report

•     Vocational Services for              27,377             27,377     Not yet known Section 32A report
      People with Disabilities (part)

Total IDEA Services Limited                27,539             27,539              150

Workbridge Incorporated

•     Vocational Services for              18,213             18,213     Not yet known Section 32A report
      People with Disabilities (part)

National Collective of
Independent Women's Refuge

•     Strong Families (part)                2,170              2,170     Not yet known Section 32A report

•     Counselling and                         401                401     Not yet known Section 32A report
      Rehabilitation Services (part)

•     Education and Prevention                629                629     Not yet known Section 32A report
      Services (part)

•     Strengthening Providers and           1,465              1,465     Not yet known
      Communities (part)

•     Family Wellbeing Services            11,528             11,528     Not yet known Section 32A report
      (part)

Total National Collective of               16,193             16,193
Independent Women's Refuge




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                                            2009/10            2009/10           2010/11                             Expiry of
                                           Budgeted    Estimated Actual           Budget Reporting                   Funding
Provider                                       $000               $000              $000 Mechanism                Commitment
The Glenelg Children's Health
Camp Charitable Trust

•   Strong Families (part)                       33                 33                33 Section 32A report

•   Family Wellbeing Services                15,206             15,206              1,109 Section 32A report
    (part)

Total Glenelg Children's Health              15,239             15,239              1,142
Camp Charitable Trust

Barnardos New Zealand
Incorporated

•   Strong Families (part)                    2,970              2,970               429 Section 32A report

•   Counselling and                             284                284               261 Section 32A report
    Rehabilitation Services (part)

•   Family Wellbeing Services                 5,189              5,189              4,323 Section 32A report
    (part)

•   Education and Prevention                     84                 84                46 Section 32A report
    Services (part)

Total Barnardos New Zealand                   8,527              8,527              5,059

Presbyterian Support Services
Northern

•   Education and Prevention                    157                157               157 Section 32A report
    Services (part)

•   Family Wellbeing Services                 5,584              5,584              5,704 Section 32A report
    (part)

•   Vocational Services for                       4                  4      Not yet known Section 32A report
    People with Disabilities (part)

•   Strong Families (part)                    1,776              1,776               398 Section 32A report

Total Presbyterian Support                    7,521              7,521              6,259
Services Northern
Student Job Search

•   Student Placement Services                4,297              4,297              3,512

The Salvation Army New Zealand
Trust

•   Strong Families (part)                    1,026              1,026                26 Section 32A report

•   Counselling and                             227                227      Not yet known Section 32A report
    Rehabilitation Services (part)

•   Vocational Services for                     800                800      Not yet known Section 32A report
    People with Disabilities (part)

•   Family Wellbeing Services                 1,941              1,941      Not yet known Section 32A report
    (part)
Total Salvation Army                          3,994              3,994                26
New Zealand Trust

Family Start Manukau

•   Strong Families (part)                    3,758              3,758              3,860 Section 32A report




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                                          2009/10            2009/10           2010/11                         Expiry of
                                         Budgeted    Estimated Actual           Budget Reporting               Funding
Provider                                     $000               $000              $000 Mechanism            Commitment
Relationship Services Inc

•     Strong Families (part)                  608                608               64 Section 32A report

•     Counselling and                       2,771              2,771     Not yet known Section 32A report
      Rehabilitation Services (part)

•     Family Wellbeing Services               271                271     Not yet known Section 32A report
      (part)

•     Strengthening Providers and              45                 45     Not yet known
      Communities (part)

•     Education and Prevention                  8                  8     Not yet known Section 32A report
      Services (part)

Total Relationship Services Inc             3,703              3,703               64

Te Whānau O Waipareira Trust

•     Strong Families (part)                2,038              2,038             1,443 Section 32A report

•     Education and Prevention                 40                 40     Not yet known Section 32A report
      Services (part)

•     Counselling and                         922                922     Not yet known Section 32A report
      Rehabilitation Services (part)

•     Family Wellbeing Services               167                167     Not yet known Section 32A report
      (part)

Total Te Whānau O Waipareira                3,167              3,167             1,443
Trust
Open Home Foundation
Canterbury Branch

•     Education and Prevention                 25                 25               13 Section 32A report
      Services (part)

•     Family Wellbeing Services             2,237              2,237             2,187 Section 32A report
      (part)

•     Strong Families (part)                  776                776                 3 Section 32A report

•     Counselling and                          91                 91               91 Section 32A report
      Rehabilitation Services (part)

Total Open Home Foundation                  3,129              3,129             2,294
Canterbury Branch

Anglican Trust for Women &
Children

•     Strong Families (part)                2,064              2,064             1,988 Section 32A report

•     Family Wellbeing Services               915                915              871 Section 32A report
      (part)

•     Counselling and                         134                134     Not yet known Section 32A report
      Rehabilitation Services (part)

Total Anglican Trust for Women &            3,113              3,113             2,859
Children
Kirikiriroa Family Services Trust

•     Strong Families (part)                3,024              3,024             3,017 Section 32A report




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                                            2009/10            2009/10           2010/11                             Expiry of
                                           Budgeted    Estimated Actual           Budget Reporting                   Funding
Provider                                       $000               $000              $000 Mechanism                Commitment
Royal New Zealand Plunket
Society (Palmerston North
Branch) Inc

•   Strong Families (part)                    2,598              2,598              2,548 Section 32A report

CCS Disability Action
Incorporated

•   Vocational Services for                   2,135              2,135      Not yet known Section 32A report
    People with Disabilities (part)

Anglican Family Care Centre

•   Counselling and                             116                116               116 Section 32A report
    Rehabilitation Services (part)

•   Strong Families (part)                    1,180              1,180              1,174 Section 32A report

•   Family Wellbeing Services                   748                748               748 Section 32A report
    (part)

•   Education and Prevention                     25                 25                25 Section 32A report
    Services

Total Anglican Family Care                    2,069              2,069              2,063
Centre


This table presents the 20 major service providers Vote Social Development has funding arrangements
with. Contracts are issued to providers for a multi year period. These contracts expire progressively and
are considered for renewal. Until renewal of a provider's contract is confirmed the funding is not shown in
the table above. The table shows information current at 31 March 2010.
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.




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VOTE SOCIAL DEVELOPMENT




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 or Objectives of Appropriations     Appropriations

More people get into work and stay in work                     Accommodation Assistance, Benefits Paid in Australia, Childcare
                                                               Assistance, Disability Assistance, Domestic Purposes Benefit,
                                                               Employment Related Training Assistance, Family Start/NGO Awards,
                                                               Hardship Assistance, Invalid's Benefit, Redundancy Assistance,
                                                               Sickness Benefit, Special Circumstance Assistance, Student
                                                               Allowances, Study Scholarships and Awards, Transition to
                                                               Work, Unemployment Benefit and Emergency Benefit, and Widow's
                                                               Benefit.
More children are safe                                         Childcare Assistance, Disability Assistance, Family Start/NGO
                                                               Awards, and Orphan's/Unsupported Child's Benefit.

More young people stay on track                                Accommodation Assistance, Benefits Paid in Australia, Disability
                                                               Assistance, 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.

Reduced re-offending by young people                           Accommodation Assistance, Benefits Paid in Australia, Disability
                                                               Assistance, 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.

Improved quality of life for older people                      Accommodation Assistance, Benefits Paid in Australia, Disability
                                                               Assistance, Hardship Assistance, Invalid's Benefit, New Zealand
                                                               Superannuation, Special Circumstance Assistance, Student
                                                               Allowances, and Unemployment Benefit and Emergency Benefit.
Communities are better able to support themselves              Accommodation Assistance, Childcare Assistance, Family Start/NGO
                                                               Awards, Redundancy Assistance, 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 2009/10 Supplementary Estimates includes for the
last three months of 2009/10 not the mid-point forecast but a reasonable upper bound of the forecast
range. The estimated actual amounts for 2009/10 and the amounts to be appropriated for 2010/11 shown
in the 2010/11 Estimates of Appropriations and here in the Information Supporting the Supplementary
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.




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In cases where the amounts have been split into subset parts below, the 2009/10 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

                                                                  2009/10                2010/11        2011/12       2012/13        2013/14

                                                                         Estimated
                                                           Budgeted          Actual       Budget      Estimated     Estimated      Estimated
                                                               $000           $000          $000           $000          $000           $000
Total Appropriation                                        1,164,493     1,157,683      1,220,758     1,236,594     1,239,991      1,250,797

Accommodation Supplement (incorporating Away From
Home Allowance)                                            1,157,599     1,157,599      1,220,687     1,236,534     1,239,941      1,250,754
Special Transfer Allowance                                        84             84            71             60            50            43



Reasons for Change in Appropriation
Increases in Accommodation Supplement recipients and a rising average payment are expected to
increase expenditure from 2009/10 to 2011/12. Expenditure continues rising through to 2013/14 as the
rising average payment more than offsets the decreasing trend in the number of recipients.

Conditions on Use of Appropriation

Reference                                        Conditions

Accommodation Supplement is paid under           The Accommodation Supplement provides a 70% subsidy for housing costs that exceed
sections 61DH to 61EC of the Social Security     25% of the recipient's income (for renters or boarders) or 30% of the recipient's income (for
Act 1964                                         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       The Away from Home Allowance provides assistance with accommodation costs for the
Away from Home Allowance Welfare                 caregivers of dependent 16-17 year olds who move away from home to undertake tertiary
Programme pursuant to section 124(1)(d) of the   study or an approved employment related training course. The level of Allowance is based
Social Security Act 1964                         on the same formula as for Accommodation Supplement. The Allowance is a non-taxable
                                                 payment.
Special Transfer Allowance is paid under the     The Special Transfer Allowance provides assistance with accommodation costs to
Special Transfer Allowance Programme 2000        recipients of the Special Transfer Allowance prior to November 2000 and to former Tenure
pursuant to section 124(1)(d) of the Social      Protection Allowance recipients who have had their present house sold to a private landlord
Security Act 1964                                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.




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Current and Past Policy Initiatives

                                                       Year of    2009/10     2010/11     2011/12     2012/13       2013/14
                                                       First     Budgeted      Budget    Estimated   Estimated     Estimated
Policy Initiative                                      Impact        $000        $000         $000        $000          $000

Current Government

Increasing Medical Training Places                     2013/14           -           -           -             -          1

Budget 2010 Tax Package                                2010/11           -     (2,572)     (8,941)     (8,167)       (8,220)

Maintain 2010 EFTS in the University and Polytechnic   2010/11           -         14          25            21          21
Sectors

Meet Some Additional Demand for Tertiary Education     2010/11           -          6          11            11          10

Student Support Savings Package                        2010/11           -         22          40            36          37

Increasing Medical Training Places                     2009/10          1           3           5             7           7

Wānanga Response to Job Summit and Enrolment           2009/10          1           1            -             -           -
Pressures

ReStart: Transitional Relief Package                   2008/09      1,796         751            -             -           -

Previous Government

Increasing the Student Allowance Parental Income       2008/09        237         249         262           262         262
Threshold by 10%
Lowering the Age Limit for Student Allowance Parental 2008/09         325         338         352           352         352
Income Testing by One Year

Student Achievement Component: Access in priority      2008/09         56          29         (25)          (25)        (25)
areas
Accommodation Supplement Effects HNZC Housing          2007/08    (11,065)    (11,065)    (11,065)    (11,065)      (11,065)
Applications

Annual Adjustment of Student Allowance Personal        2007/08          2           2           2             2           2
Income Abatement Threshold
Increasing the Student Allowances Parental Income      2007/08        101         103         103           103         103
Threshold by 10%

Accommodation Supplement Effects of HNZC Housing 2006/07              449         449         449           449         449
Acquisitions

Aligning Student Support with Funded Qualifications    2006/07       (113)       (113)       (113)         (113)       (113)

Increasing the Student Allowance Parental Income       2006/07         83          83          83            83          83
Thresholds

Adjust the Student Allowances Personal Income          2005/06         91          91          91            91          91
Threshold and Abatement Regime
Increase the Parental Income Threshold Disregard for   2005/06         75          75          75            75          75
Families with More than One Student

Introduce a Parental Income Threshold Disregard for    2005/06          8           8           8             8           8
Separated Parents




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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

                                                                     2009/10               2010/11        2011/12       2012/13       2013/14

                                                                            Estimated
                                                              Budgeted          Actual      Budget      Estimated     Estimated     Estimated
                                                                  $000           $000         $000           $000          $000          $000
Total Appropriation                                               45,041        45,041       39,272        36,976        21,134        17,963


Reasons for Change in Appropriation
Expenditure on 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. The large reduction in 2012/13
represents grandparented payments for Disability Support Pension and Parenting Payment ceasing
under the Agreement after ten years of payment.

Conditions on Use of Appropriation

Reference                                           Conditions

Benefits Paid in Australia are paid under the       This appropriation is a result of the 1994 Social Security Agreement between the Australian
Social Welfare (Reciprocity with Australia) Order   and New Zealand Governments to provide income support to former New Zealand
2002 issued pursuant to section 19 of the Social    residents now living in Australia. The Agreement required the New Zealand Government to
Welfare (Transitional Provisions) Act 1990          reimburse the Australian Government for assistance provided. This agreement was 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'.


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

                                                                     2009/10               2010/11        2011/12       2012/13       2013/14

                                                                            Estimated
                                                              Budgeted          Actual      Budget      Estimated     Estimated     Estimated
                                                                  $000           $000         $000           $000          $000          $000
Total Appropriation                                              184,877       178,271     190,062        189,226       187,160       183,884




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Reasons for Change in Appropriation
The number of children for whom this subsidy is paid has been growing for most of the past five years
and is now expected to peak at an average of nearly 49,000 during 2010/11 and then show some steady
reduction toward 44,000 by 2013/14. This pattern is reflected in the expenditure in the table above. The
growth in the number of households eligible for this subsidy will be affected by the slowdown in increases
in the income threshold.

Conditions on Use of Appropriation

Reference                                           Conditions

Childcare Assistance includes the Childcare         The Childcare Subsidy assists with pre-school costs for caregivers. The Subsidy covers
Subsidy and the Out of School Care and              children aged 0 to 4 years old, or 0 to 5 if a Child Disability Allowance is also payable.
Recreation Subsidy (OSCAR subsidy). These           Childcare Subsidy is payable for up to 50 hours per week of attendance at an approved
are paid under section 61GA of the Social           early childhood programme where a caregiver is engaged in an approved activity such as
Security Act 1964 and the Social Security           employment or training; has serious illness or disability or whose dependent child or
(Childcare Assistance) Regulations 2004             children have a serious illness or disability; or up to 9 hours per week in most other cases.
pursuant to section 132AC of the Social Security    There are three standard levels of subsidy depending on household income. The Childcare
Act 1964                                            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.
                                                    The OSCAR subsidy assists with out-of-school care costs for caregivers to take up or
                                                    remain in paid employment. OSCAR covers 5 to 13 year olds, and 5 to 17 if a Child
                                                    Disability Allowance is also payable.
                                                    OSCAR subsidy is available for approved before and after school care for up to 20 hours
                                                    per week and up to 50 hours per week in approved school holiday programmes. The
                                                    caregiver must be participating in an approved activity such as employment or training. The
                                                    OSCAR subsidy is a non-taxable income tested payment.
Early Learning Programme Assistance is paid         Early Learning Programme Assistance is provided to families who are enrolled in selected
under the Family Start and Early Start              Family Start or Early Start programmes. The rate provided is 20 hours per week for an
(Childcare Assistance) Programme pursuant to        eligible child under 30 months of age or 15 hours per week for an eligible child between 30
section 124(1)(d) of the Social Security Act 1964   and 36 months of age. The Assistance is a non-taxable payment.



Current and Past Policy Initiatives

                                                           Year of            2009/10       2010/11       2011/12       2012/13        2013/14
                                                           First             Budgeted        Budget      Estimated     Estimated      Estimated
Policy Initiative                                          Impact                $000          $000           $000          $000           $000

Current Government

Achieving Government's Priorities in Early Childhood       2011/12                    -             -          600            600           600
Education

Budget 2010 Tax Package                                    2010/11                    -        3,033         4,055          4,215         4,342

Early Childhood Education:Budget Decisions                 2010/11                    -          (51)         (125)         (129)          (133)

Early Childhood Education: Funding Rates and Policy        2010/11                    -      (2,186)        (2,761)       (2,839)        (2,839)
Changes
Future Focus                                               2010/11                    -      (1,124)       (10,239)      (17,125)      (24,182)

Removing Childcare Subsidy from Unlicensed Limited         2010/11                    -        (563)          (572)         (579)          (588)
Attendance Centres
Previous Government

Extension to Limited Attendance Centres                    2008/09                 435           508           519            519           519

Implementing Free Early Childhood Education                2007/08            (21,066)      (21,066)       (21,066)      (21,066)      (21,066)

Early Intervention for Vulnerable Children - Family Start 2005/06                1,841         1,841         1,841          1,841         1,841
Access to Early Education




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                                                          Year of            2009/10        2010/11       2011/12        2012/13        2013/14
                                                          First             Budgeted         Budget      Estimated      Estimated      Estimated
Policy Initiative                                         Impact                $000           $000           $000           $000           $000
Enhanced Work Focus for Domestic Purposes Benefit         2005/06               5,338          5,338          5,338          5,338         5,338
Clients

Enhancing Parents' Work Choices                           2005/06               9,426          9,426          9,426          9,426         9,426

Temporary Additional Support: Measures to Prevent         2005/06                 249            249            249            249           249
Unintended Disadvantage



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

                                                                    2009/10                 2010/11        2011/12        2012/13        2013/14

                                                                            Estimated
                                                             Budgeted           Actual       Budget      Estimated      Estimated      Estimated
                                                                 $000            $000          $000           $000           $000           $000

Total Appropriation                                             412,639       411,711       421,052        436,490        450,156        465,244

Child Disability Allowance                                      101,849       101,849         97,798        98,795         99,981        101,559

Disability Allowance                                            309,862       309,862       323,254        337,695        350,175        363,685



Reasons for Change in Appropriation
A rising trend in the average amount paid to recipients of Disability Allowance contributes just over half of
the growth in Disability Allowance expenditure. Ongoing growth in the number of New Zealand
Superannuation recipients aged over 75 years is expected to drive growth in Disability Allowance
expenditure. The number of recipients is expected to grow from around 253,000 in 2009/10 to around
272,000 by 2013/14. The number of Child Disability Allowance recipients is expected to decrease
contributing to the decrease in Child Disability Allowance expenditure from 2009/10 to 2010/11.
Expenditure increases from 2010/11 to 2013/14 as cost of living adjustments more than offsets the
decrease in the number of Child Disability Allowance recipients.

Conditions on Use of Appropriation

Reference                                          Conditions

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




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Current and Past Policy Initiatives

                                                          Year of            2009/10        2010/11       2011/12       2012/13        2013/14
                                                          First             Budgeted         Budget      Estimated     Estimated      Estimated
Policy Initiative                                         Impact                $000           $000           $000          $000           $000

Current Government

Budget 2010 Tax Package                                   2010/11                    -         6,117         8,686          8,878         9,119

Future Focus                                              2010/11                    -            60            60             60            60

Previous Government

Setting New Zealand Superannuation and Veteran's          2006/07                  78             78            78             78            78
Pension Rates at 66% of the Net Average Wage
Disability Allowance for People in Residential Care       2005/06              15,249        15,249         15,249        15,249         15,249

Progressive Removal of Asset Testing for older People 2005/06                     800            800           800            800           800
in Long-Term Residential Care


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

                                                                    2009/10                 2010/11        2011/12       2012/13        2013/14

                                                                            Estimated
                                                              Budgeted          Actual       Budget      Estimated     Estimated      Estimated
                                                                  $000           $000          $000           $000          $000           $000
Total Appropriation                                          1,701,913      1,694,360     1,756,450      1,847,112     1,890,138      1,938,240



Reasons for Change in Appropriation
Around 85% of the increase in expenditure is caused by cost of living adjustments. Growth in the number
of recipients contributes to the remainder though it occurs mostly from 2009/10 to 2011/12. A change in
the abatement rules as part of Future Focus, which allows benefit recipients to earn more part-
time income before their benefit is abated, is expected to increase expenditure from 2010/11 onwards.
The Tax Reform Package lowers gross expenditure from 2010/11 onwards.

Conditions on Use of Appropriation
Reference                                          Conditions

Domestic Purposes Benefit is paid                Domestic Purposes Benefit provides assistance to people caring for others. Domestic
under sections 27A to 27H of the Social Security purposes benefit - sole parent provides income support for sole parents with dependent
Act 1964                                         children. Domestic purposes benefit - women alone provides income support for women
                                                 with no dependent children who have lost the support of their partner or have finished
                                                 caring for a sick relative or children after 50. Domestic purposes benefit - care of sick or
                                                 infirm is available for people aged 16 or over who are caring full-time for someone other
                                                 than their partner who would need hospital or other care if not in this care.
                                                 The net weekly rates paid depend on age, and domestic purposes benefit - care of sick or
                                                 infirm is paid at a higher rate. The benefit is income tested. The appropriation is inclusive of
                                                 tax and is after deductions for debt establishments and overseas pension recoveries.




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Current and Past Policy Initiatives

                                                          Year of           2009/10       2010/11     2011/12       2012/13      2013/14
                                                          First            Budgeted        Budget    Estimated     Estimated    Estimated
Policy Initiative                                         Impact               $000          $000         $000          $000         $000

Current Government

Budget 2010 Tax Package                                   2010/11                    -     (7,928)      (8,951)      (9,719)      (10,259)

Future Focus                                              2010/11                    -      6,334        8,504         8,522        8,534

Previous Government

Working New Zealand: Work-Focused Support:                2006/07                 542         545          545           545          545
Support and Services
Enhanced Work Focus for Domestic Purposes Benefit         2005/06             (22,223)   (22,223)      (22,223)     (22,223)      (22,223)
Clients



Employment Related Training Assistance (M63)

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

                                                                    2009/10               2010/11      2011/12      2012/13       2013/14

                                                                          Estimated
                                                             Budgeted         Actual       Budget    Estimated     Estimated    Estimated
                                                                 $000          $000          $000         $000          $000         $000
Total Appropriation                                              23,467        23,467      19,797       16,470        14,767       15,262

Course Participation Assistance Programme                         1,756         1,756       1,907        1,828         1,679        1,538

Training Incentive Allowance                                     21,711        21,711      17,890       14,642        13,088       13,724



Reasons for Change in Appropriation
This is a capped item. The cap has been reduced each year between 2009/10 to 2012/13 reflecting policy
changes to align the programme with the Tertiary Education Framework. This reduction is mainly
because Training Incentive Allowance will be restricted to only include courses below level 4 on the
National Qualifications Framework.

Conditions on Use of Appropriation

Reference                                           Conditions

Training Incentive Allowance and Young Parent       To qualify for the Training Incentive Allowance a client must be receiving a qualifying
Childcare payments are paid under the Training      benefit and be enrolled in a course that: is approved employment related training,
Incentive Allowance Programme pursuant to           and attracts Student Component Funding or other Government funding; or is considered to
section 124(1)(d) of the Social Security Act 1964   meet government quality and relevance standards but is not student component funded,
                                                    eg, secondary school courses and university pre-enrolment courses.
                                                    Young Parent Childcare payments can be made to some teenage parents aged under 18 to
                                                    cover childcare costs to enable those parents to attend secondary education.




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Reference                                        Conditions

Course Participation Assistance is paid          Course Participation Assistance helps with costs incurred through participating in short-term
under the Course Participation Assistance        employment related training courses or programmes. The payment is available to assist
Programme pursuant to section 124(1)(d) of the   with childcare and transport costs and some short course fees, for example, to obtain a
Social Security Act 1964                         heavy traffic licence. This Assistance is not available where a Training Incentive
                                                 Allowance is already paid for the same course. It is subject to income and asset tests. The
                                                 Assistance is a non-taxable payment.



Current and Past Policy Initiatives

                                                        Year of            2009/10        2010/11       2011/12       2012/13        2013/14
                                                        First             Budgeted         Budget      Estimated     Estimated      Estimated
Policy Initiative                                       Impact                $000           $000           $000          $000           $000
Current Government

Budget 2010 Tax Package                                 2010/11                    -           301           333            298           308

Saving Training Incentive Allowance                     2009/10              (2,037)       (5,890)        (9,061)      (11,469)       (11,469)

Young Parent Childcare Payment                          2008/09                 300            300           300            300           300

Previous Government

Supporting a Sustainable NGO Social Services Sector: 2008/09                (17,646)      (17,454)      (17,070)       (17,070)       (17,070)
Net Operating Impact (Pathway to Partnership)



Family Start/NGO Awards (M63)

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



Expenses

                                                                  2009/10                 2010/11        2011/12       2012/13        2013/14

                                                                          Estimated
                                                           Budgeted           Actual       Budget      Estimated     Estimated      Estimated
                                                               $000            $000          $000           $000          $000           $000

Total Appropriation                                               705           705            705           705            705           705

Family Start family/whānau Awards                                 238           238            238           238            238           238

Non-Government Organisation (NGO) Awards                          467           467            467           467            467           467



Conditions on Use of Appropriation

Reference                                        Conditions

Family Start family/whānau Awards are paid       The Family Start Awards pay for course fees that enable Family Start employees to study
under Cabinet decisions                          for diploma or degree level qualifications in social work, early childhood education or health.

Non-Government Organisation (NGO)                The NGO Awards pay for course fees that enable NGO staff to study for social work
Awards are paid under Cabinet decisions          qualifications that meet the prerequisite educational qualifications for social worker
                                                 registration.




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Current and Past Policy Initiatives

                                                        Year of            2009/10      2010/11    2011/12     2012/13     2013/14
                                                        First             Budgeted       Budget   Estimated   Estimated   Estimated
Policy Initiative                                       Impact                $000         $000        $000        $000        $000

Previous Government

Early Intervention for Vulnerable Children - Family Start 2005/06                255       255         255         255         255
Training and Qualifications

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

                                                                    2009/10             2010/11    2011/12     2012/13     2013/14

                                                                          Estimated
                                                           Budgeted           Actual    Budget    Estimated   Estimated   Estimated
                                                               $000            $000       $000         $000        $000        $000

Total Appropriation                                          277,963          272,963   288,475    285,395     283,824     286,392

Funeral Grants                                                10,169           10,169     9,637     10,063      10,297      10,526

Special Benefit                                               44,144           44,144    36,527     32,125      29,586      28,281

Special Needs Grants (incorporating Live Organ
Donors Assistance)                                            76,014           76,014    79,862     75,989      74,002      75,582

Temporary Additional Support                                 142,636          142,636   162,449    167,218     169,939     172,003



Reasons for Change in Appropriation
The number of Special Benefit recipients will continue to reduce at a diminishing rate. This payment was
closed to new applicants from April 2006 but is still subject to reviews of costs. Temporary Additional
Support replaced Special Benefit for new applicants and is expected to increase in line with growing
applications from people in financial hardship, with most of the increase happening from 2009/10 to
2010/11. Special Needs Grants expenditure is expected to remain similar to current levels.




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Conditions on Use of Appropriation

Reference                                           Conditions

Funeral Grants are paid under sections 61D to       Funeral Grants are discretionary payments designed to help people with actual and
61DE of the Social Security Act 1964                reasonable funeral costs only up to a set maximum. 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     Special Benefit provides assistance to clients whose particular financial circumstances and
Social Security (Working for Families)              commitments are causing them financial hardship. Special Benefit is available to
Amendment Act 2004 and the Direction In             beneficiaries and low income earners who were receiving it immediately before 1 April 2006
Relation to Special Benefit pursuant to section 5   whose Special Benefit has not been cancelled.
of the Social Security Act 1964                     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           The Special Needs Grant assists people who have an immediate and essential or
Special Needs Grants Programme pursuant to emergency need and have no other means of paying for it. The Grant includes the Rural
section 124(1)(d) of the Social Security Act 1964 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       Live Organ Donor Assistance is financial assistance for people who donate a kidney or liver
Assistance to Live Organ Donors Programme           tissue for transplant purposes. It is not subject to income or asset tests. The Grant is a non-
and Ministerial Direction pursuant to sections 5    taxable payment.
and 124(1)(d) of the Social Security Act 1964
Temporary Additional Support is paid under          Temporary Additional Support provides financial assistance as a last resort to alleviate
section 61G of the Social Security Act 1964 and     financial hardship for people whose essential costs cannot be met from their chargeable
the Social Security (Temporary Additional           income and other resources. This support became available from 1 April 2006. This non-
Support) Regulations 2005 made pursuant to          taxable payment is made to help meet essential living costs while clients reduce their
section 132AB of the Social Security Act 1964       commitments and live within their usual income. The standard period for this financial
                                                    assistance is 13 weeks.



Current and Past Policy Initiatives

                                                           Year of            2009/10         2010/11      2011/12        2012/13        2013/14
                                                           First             Budgeted          Budget     Estimated      Estimated      Estimated
Policy Initiative                                          Impact                $000            $000          $000           $000           $000

Current Government

Budget 2010 Tax Package                                    2010/11                     -       (1,062)       (5,127)        (5,473)        (5,651)

Future Focus                                               2010/11                     -         (536)         (827)          (905)        (1.028)

Plan of Action to Prevent People Trafficking               2009/10                   30            30             30             30             30

Previous Government

Special Needs Grant, Core Benefit Changes and              2008/09              14,000         14,000         14,000        14,000         14,000
Further Work

Hardship Assistance: Implementation of Temporary           2005/06              (2,597)        (2,597)       (2,597)        (2,597)        (2,597)
Additional Support
Temporary Additional Support: Measures to Prevent          2005/06                 243            243            243            243            243
Unintended Disadvantage

Temporary Additional Support: Ministerial Welfare          2005/06                (409)          (409)         (409)          (409)          (409)
Programme for Short-Term Residential Treatment
Programmes




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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

                                                                2009/10                2010/11        2011/12       2012/13        2013/14

                                                                       Estimated
                                                         Budgeted          Actual        Budget     Estimated     Estimated      Estimated
                                                             $000           $000           $000          $000          $000           $000

Total Appropriation                                         19,621        19,385         19,395        19,991         20,039        19,811



Reasons for Change in Appropriation
The level of expenditure is expected to remain similar to current levels with cost of living adjustments
being mostly offset by a decreasing trend in the number of recipients.

Conditions on Use of Appropriation

Reference                                      Conditions

Independent Youth Benefit is paid under        Independent Youth Benefit is for 16 to 17 year olds who are looking for work, training for
sections 60F to 60GAC of the Social Security   work, in school or cannot work due to sickness, injury, disability or pregnancy, and it is
Act 1964                                       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. This appropriation is inclusive of tax and is after deductions for debt
                                               establishments.



Current and Past Policy Initiatives

                                                      Year of            2009/10       2010/11       2011/12       2012/13        2013/14
                                                      First             Budgeted        Budget      Estimated     Estimated      Estimated
Policy Initiative                                     Impact                $000          $000           $000          $000           $000

Current Government

Budget 2010 Tax Package                               2010/11                    -          (47)          (48)           (47)          (47)

Opportunities for Young People During the Economic    2009/10               (572)         (191)               -             -               -
Downturn
Previous Government

Working New Zealand: Work-Focused Support:            2007/08               (137)         (137)          (137)         (137)          (137)
Support and Services




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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

                                                                   2009/10                2010/11       2011/12        2012/13       2013/14

                                                                          Estimated
                                                            Budgeted          Actual       Budget     Estimated      Estimated     Estimated
                                                                $000           $000          $000          $000           $000          $000

Total Appropriation                                         1,306,435     1,302,459     1,319,236     1,374,380      1,394,199     1,416,657



Reasons for Change in Appropriation
Ongoing growth in expenditure is caused by accumulated cost of living adjustments. Growth in the
number of Invalid's Benefit recipients is expected to increase expenditure from 2009/10 to
2011/12. From 2011/12 the trend in the number of recipients is expected to be flat. The Tax Reform
Package lowers gross expenditure from 2010/11.

Conditions on Use of Appropriation

Reference                                         Conditions

Invalid's Benefit is paid under sections 39F to   The Invalid's Benefit is paid to people who are medically assessed as having a permanent
44A of the Social Security Act 1964               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. To
                                                  receive Invalid's benefit a client must be aged 16 or over.
                                                  The benefit is income tested and subject to income abatement but all personal earnings of
                                                  a totally blind person are excluded. Invalid's Benefit is paid at a higher rate than other
                                                  benefits with rates dependent on age and family status.
                                                  This appropriation is inclusive of tax and is after deductions for debt establishments and
                                                  overseas pension recoveries.



Current and Past Policy Initiatives

                                                         Year of           2009/10        2010/11      2011/12        2012/13       2013/14
                                                         First            Budgeted         Budget     Estimated      Estimated     Estimated
Policy Initiative                                        Impact               $000           $000          $000           $000          $000

Current Government

Budget 2010 Tax Package                                  2010/11                   -       (4,289)       (5,041)        (5,636)       (6,046)

Future Focus                                             2010/11                   -         4,066         5,503         5,563         5,625

Previous Government

Working New Zealand: Work-Focused Support:               2006/07             13,496        13,762         13,762        13,762        13,762
Support and Services




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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

                                                                    2009/10               2010/11       2011/12       2012/13       2013/14

                                                                          Estimated
                                                             Budgeted         Actual       Budget     Estimated     Estimated     Estimated
                                                                 $000          $000          $000          $000          $000          $000

Total Appropriation                                         8,306,504     8,287,230     8,822,221     9,559,693    10,148,510    10,780,693



Reasons for Change in Appropriation
The rising trend in expenditure is caused by a rising number of eligible people aged 65 years and over,
accounting for over half of total growth, and accumulated cost of living adjustments, accounting for
around 46%. The Tax Reform Package also contributes to higher expenditure from 2010/11 onwards.

Conditions on Use of Appropriation

Reference                                          Conditions

New Zealand Superannuation is paid under the       New Zealand Superannuation provides income for people who have reached the qualifying
New Zealand Superannuation and Retirement          age of 65 and fulfil the residency requirements. The Living Alone Payment is an additional
Income Act 2001. Living Alone Payment is paid      rate of New Zealand Superannuation which recognises the extra costs for clients
in accordance with the criteria set out in the     maintaining a household on their own. New Zealand Superannuation at a higher, income-
New Zealand Superannuation and Retirement          tested rate is also paid on the election of a person with a spouse or partner who does not
Income Act 2001 and in the Ministerial Direction   qualify for New Zealand Superannuation.
- Living Alone Payments pursuant to section 5 of   With the exception of the higher rate where a non-qualified spouse is included
the Social Security Act 1964                       New Zealand Superannuation is not income tested.
                                                   This appropriation is inclusive of tax and is after deductions for debt establishments and
                                                   overseas pension recoveries.



Current and Past Policy Initiatives

                                                          Year of           2009/10       2010/11      2011/12       2012/13       2013/14
                                                          First            Budgeted        Budget     Estimated     Estimated     Estimated
Policy Initiative                                         Impact               $000          $000          $000          $000          $000
Current Government

Budget 2010 Tax Package                                   2010/11                   -      42,218       178,498       187,929       189,513

Future Focus                                              2010/11                   -        1,620         2,238         2,328         2,412

Setting New Zealand Superannuation and Veteran's     2009/10                   1,523         6,423         6,707         7,000         7,000
Pension rates at a minimum of 66% of the net average
wage




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                                                        Year of           2009/10        2010/11      2011/12       2012/13       2013/14
                                                        First            Budgeted         Budget     Estimated     Estimated     Estimated
Policy Initiative                                       Impact               $000           $000          $000          $000          $000
Previous Government

Review of the Treatment of Overseas Pensions and        2008/09               1,245        1,303         1,349         1,349         1,349
Payment of New Zealand Superannuation and
Veterans' Pension Overseas
New Zealand Superannuation and Veteran's Pension:       2006/07                354           354           354           354           354
Extension of Payment Overseas to Recognised Aid
Agency Volunteers

Setting New Zealand Superannuation and Veteran's        2006/07              56,667        4,157         4,157         4,157         4,157
Pension Rates at 66% of the Net Average Wage

Single Rates of New Zealand Superannuation for Some 2006/07                   8,341        8,341         8,341         8,341         8,341
Married People
Removal of Sharing Expenses Rule for Eligibility to the 2005/06                186           186           186           186           186
Living Alone Payment



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.



Expenses

                                                                  2009/10                2010/11       2011/12       2012/13       2013/14

                                                                         Estimated
                                                           Budgeted          Actual       Budget     Estimated     Estimated     Estimated
                                                               $000           $000          $000          $000          $000          $000
Total Appropriation                                           101,549       100,988      107,403       115,311       120,503       125,527



Reasons for Change in Appropriation
Accumulated cost of living adjustments and an increasing number of children for whom this is
payable contribute to the ongoing rise in expenditure from 2009/10 to 2013/14.

Conditions on Use of Appropriation

Reference                                        Conditions

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




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Current and Past Policy Initiatives

                                                          Year of           2009/10       2010/11     2011/12       2012/13      2013/14
                                                          First            Budgeted        Budget    Estimated     Estimated    Estimated
Policy Initiative                                         Impact               $000          $000         $000          $000         $000

Current Government

Budget 2010 Tax Package                                   2010/11                  -        2,164        2,278         2,384           2,419

Previous Government

Alignment of UCB/OB weekly rates with the FCA             2008/09              7,314        7,580        7,898         7,898           7,898
weekly board rates

Increasing Financial Support for Caregivers Receiving     2006/07              7,157        7,157        7,157         7,157           7,157
Unsupported Child's Benefit/Orphan's Benefit



Redundancy Assistance (M63)

Scope of Appropriation
 This appropriation is limited to paying assistance for a limited period to people made redundant,
 pursuant to the conditions and criteria set out in ReStart Transitional Relief Ministerial Welfare
 Programme 2008 and the Social Security Act 1964.



Expenses

                                                                    2009/10               2010/11      2011/12      2012/13       2013/14

                                                                          Estimated
                                                             Budgeted         Actual      Budget     Estimated     Estimated    Estimated
                                                                 $000          $000         $000          $000          $000         $000

Total Appropriation                                              3,637         3,627          428             -            -               -



Reasons for Change in Appropriation
The decrease in expenditure from 2009/10 to 2010/11 is because of an expected reduction in demand for
this payment and the programme finishing on 1 January 2011.

Conditions on Use of Appropriation

Reference                                       Conditions

ReStart assistance is paid under the ReStart    ReStart provides short-term support to low to moderate income families with children and
Transitional Relief Ministerial Welfare         low to middle income people with high housing costs, who have been made redundant from
Programme and section 124(1)(d) of the Social   full-time work or have ceased full time self employment. ReStart is available to people who
Security Act 1964                               have been in employment for the previous six months and are looking for full time work.
                                                ReStart can be paid for up to 16 weeks or until a person returns to work, whichever is
                                                earlier.
                                                ReStart payments can be suspended in specified circumstances.
                                                ReStart is made up of:
                                                •       ReCover - a payment for people with dependent children and who are no longer
                                                        entitled to an in-work tax credit
                                                •    RePlace - an extra payment to help people with their accommodation costs if they are
                                                     already getting the maximum Accommodation Supplement.
                                                Applications are to be made within 20 working days after the date of redundancy and up
                                                until 31 December 2010. The Programme expires with the end of the last grant to be made
                                                in respect of any application granted prior to 1 January 2011.




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Current and Past Policy Initiatives

                                                        Year of            2009/10         2010/11       2011/12        2012/13        2013/14
                                                        First             Budgeted          Budget      Estimated      Estimated      Estimated
Policy Initiative                                       Impact                $000            $000           $000           $000           $000

Current Government

ReStart: Transitional Relief Package                    2008/09              30,890         14,515                -              -              -



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

                                                                  2009/10                  2010/11        2011/12        2012/13        2013/14

                                                                          Estimated
                                                           Budgeted           Actual        Budget      Estimated      Estimated      Estimated
                                                               $000            $000           $000           $000           $000           $000

Total Appropriation                                           716,788       713,516        760,431        795,534        814,370        832,210



Reasons for Change in Appropriation
Accumulated cost of living adjustments accounts for around 69% of the increase in expenditure from
2009/10 to 2013/14. Growth in the number of recipients also contributes to the rise in expenditure
particularly from 2009/10 to 2010/11 and then diminishes from 2010/11 and onwards. The Tax Reform
Package lowers gross expenditure from 2010/11 onwards.

Conditions on Use of Appropriation

Reference                                        Conditions

The Sickness Benefit is paid under sections 54   Sickness Benefit provides assistance to those who are willing to undertake work but are
to 54F of the Social Security Act 1964. It       limited in their capacity to work due to sickness, injury or disability. Sickness Benefit is also
includes Sickness Benefit on grounds of          available from the 27th week of pregnancy (earlier if there are complications). It is not a
hardship as set out in the Emergency Benefit     work-tested benefit except for the spouse or partner of clients in receipt of Sickness Benefit.
and Benefits on Ground of Hardship Ministerial   Weekly rates depend on age and family status and the benefit is income-tested. The sole
Direction pursuant to section 5 of the Social    parent rate is the same as for the Domestic Purposes Benefit.
Security Act 1964                                Sickness benefit on grounds of hardship is paid where an applicant meets the sickness
                                                 criteria but not the residential criteria for entitlement to sickness benefit and is in hardship.
                                                 This Benefit is inclusive of tax and is after deductions for debt establishments and overseas
                                                 pension recoveries.




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Current and Past Policy Initiatives

                                                      Year of          2009/10       2010/11      2011/12      2012/13       2013/14
                                                      First           Budgeted        Budget     Estimated    Estimated     Estimated
Policy Initiative                                     Impact              $000          $000          $000         $000          $000

Current Government

Budget 2010 Tax Package                               2010/11                  -      (1,603)       (1,647)      (1,672)      (1,702)

Previous Government

Working New Zealand: Work-Focused Support:            2006/07              (549)        (549)        (549)         (549)        (549)
Support and Services



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

                                                                2009/10              2010/11       2011/12      2012/13      2013/14

                                                                      Estimated
                                                         Budgeted         Actual      Budget     Estimated    Estimated     Estimated
                                                             $000          $000         $000          $000         $000          $000

Total Appropriation                                             26           26             -             -            -            -



Reasons for Change in Appropriation
The decrease in expenditure from 2009/10 to 2010/11 is due to a fiscally neutral transfer to Vote
Veterans' Affairs - Defence Force. From 1 February 2010 the New Zealand Defence Force assumed
responsibility for the payment of Special Annuities from the Ministry of Social Development.

Conditions on Use of Appropriation

Reference                                      Conditions

Special Annuities payments are made under the Special Annuities are awards made by government and are not covered by legislation.
authority of Cabinet                          Annual government approval is needed for their continued payment. Special Annuities are
                                              non-taxable.




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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

                                                                 2009/10                 2010/11       2011/12       2012/13       2013/14

                                                                         Estimated
                                                           Budgeted          Actual       Budget     Estimated     Estimated     Estimated
                                                               $000           $000          $000          $000          $000          $000

Total Appropriation                                           15,790        14,282        14,445        14,373        14,185        14,097

Civilian Amputee Assistance                                      394           394           407           411           415             419

Clothing Allowance                                             4,921         4,921         5,366         5,652         5,890            6,140

Community Costs                                                  594           594           635           628           626             626

Home Help                                                      2,291         2,291         2,369         2,349         2,309            2,296

Relocation Assistance                                            213           213           250           252           257             262

Social Rehabilitation Assistance                               2,023         2,023         2,103         2,198         2,234            2,268

Telephone Costs Payment                                        3,846         3,846         3,315         2,883         2,454            2,086



Reasons for Change in Appropriation
The expenditure on Telephone Costs Payment will reduce in line with the continuing fall in the number of
grandparented recipients, from 10,200 in June 2009 to 4,800 by June 2014. Reducing the pace of decline
is the growing number of residential care subsidy recipients that receive a clothing allowance (18,400 in
June 2009 and 21,000 by June 2014) and the indexation of these payments.

Conditions on Use of Appropriation

Reference                                        Conditions

Civil Defence payments are made under the        The payments are made to evacuees in areas where a Civil Defence emergency has been
Civil Defence Programme pursuant to section      declared who do not have insurance to cover their costs or have access to other available
124(1)(d) of the Social Security Act 1964        aid (eg, public donations or other government or charitable relief funds). These payments
                                                 are non-taxable.

Civilian Amputee Assistance is paid under a     The Civilian Amputees Assistance payment is made to assist people with travel,
Ministerial arrangement under section 30 of the accommodation and other costs incurred when attending a limb centre.
Disabled Persons Community Welfare Act 1975
Clothing Allowance is paid under section 154,  The Clothing Allowance is available to all recipients of a Residential Care Subsidy or
and the Social Security (Long-Term Residential Residential Care Loan. It is payable annually. This assistance is non-taxable.
Care) Regulations 2005 pursuant to section 155
of the Social Security Act 1964




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Reference                                           Conditions

Community Costs payments are paid under the The Community Costs payment assists people in certain short-term residential treatment
Community Costs Programme pursuant to             programmes to help them to re-integrate into the community at the end of their treatment
section 124(1)(d) of the Social Security Act 1964 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           Relocation Assistance may be paid as income support to victims of domestic violence and
Domestic Violence and Witness Protection          witness protection cases relocated overseas on the recommendation of the New Zealand
(Relocation) Programme 2001 pursuant to           Police. This assistance covers travel, set-up costs and living expenses and is non-taxable.
section 124(1)(d) of the Social Security Act 1964

Home Help is paid under the Home Help          Home Help is available to families who require temporary part-time domestic help (such as
Programme pursuant to section 124(1)(d) of the housework, laundry and food preparation) because of a domestic emergency, multiple
Social Security Act 1964                       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      Social Rehabilitation Assistance provides financial assistance to help people in approved
the Social Rehabilitation Assistance Programme      residential social rehabilitation programmes to pay the cost of their treatment or care in
pursuant to section 124(1)(d) of the Social         those programmes. Payment is made direct to the social rehabilitation provider. To be
Security Act 1964                                   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.

Telephone Costs Payment is paid under the           The Telephone Costs Payment provides assistance with telephone rental costs to those
Telephone Costs Payment programme pursuant          people that received a Disability Allowance for telephone rental costs as at 31 March 1999.
to section 124(1)(d) of the Social Security Act     The rate of payment is adjusted so the Telephone Costs Payment plus any Disability
1964                                                Allowance payable does not exceed the maximum payment rate for Disability Allowance.
                                                    These payments are non-taxable.



Current and Past Policy Initiatives

                                                           Year of           2009/10        2010/11      2011/12       2012/13       2013/14
                                                           First            Budgeted         Budget     Estimated     Estimated     Estimated
Policy Initiative                                          Impact               $000           $000          $000          $000          $000

Previous Government

Increased Rates of Pay for Home Helpers                    2005/06                241           241           241           241            241
Progressive Removal of Asset Testing for older People 2005/06                   1,300         1,300         1,300         1,300          1,300
in Long-Term Residential Care

Temporary Additional Support: Ministerial Welfare          2005/06                682           682           682           682            682
Programme for Short-Term Residential Treatment
Programmes




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Special Compensation Payment for GST increase (M63)

Scope of Appropriation
 This appropriation is limited to providing payments for recipients of Unemployment Benefit and related
 benefits, Sickness Benefit, Invalids' Benefit, Domestic Purposes Benefits, Independent Youth Benefit,
 Orphans Benefit, Unsupported Child's Benefit and Widow's Benefit, Student Allowances, New Zealand
 Superannuation, and Veteran's Pensions, to provide compensation between 1 October 2010 and 31
 March 2011 for the increase in the rate of GST.


Expenses

                                                            2009/10             2010/11    2011/12     2012/13     2013/14
                                                                  Estimated
                                                     Budgeted         Actual    Budget    Estimated   Estimated   Estimated
                                                         $000          $000       $000         $000        $000        $000
Total Appropriation                                           -             -   159,941           -           -           -


Reasons for Change in Appropriation
Expenditure in 2010/11 represents the total compensation provided for the increase in the rate of
GST between 1 October 2010 and 31 March 2011. Payments end when the annual cost of living
adjustment to benefit rates on 1 April 2011 takes effect. The difference between the Budget figure above
and the policy figure in the table below represents a forecast change as an updated estimate became
available after the policy impact dollars were approved by Cabinet.

Current and Past Policy Initiatives
                                                  Year of          2009/10      2010/11    2011/12     2012/13     2013/14
                                                  First           Budgeted       Budget   Estimated   Estimated   Estimated
Policy Initiative                                 Impact              $000         $000        $000        $000        $000
Current Government
Budget 2010 Tax Package                           2010/11                   -   130,929           -           -           -


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.


Expenses
                                                            2009/10             2010/11    2011/12     2012/13     2013/14
                                                                  Estimated
                                                     Budgeted         Actual    Budget    Estimated   Estimated   Estimated
                                                         $000          $000       $000         $000        $000        $000
Total Appropriation                                   596,284         589,311   656,272    626,056     575,851     552,156
Student Allowances                                    588,901         588,901   655,750    625,581     575,473     551,838
Student Allowance Transfer Grant Programme                  410          410       522         475         378         318




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Reasons for Change in Appropriation
Greater uptake of tertiary studies, in large part reflecting the desire for training in lieu of job opportunities
here and abroad, increased expenditure during 2008/09 and particularly during 2009/10. This upward
trend is expected to continue into 2010/11 before trending back toward the demographically based level
as the recession effect recedes.

Conditions on Use of Appropriation

Reference                                        Conditions

Student Allowances are paid under the Student Student Allowances are paid to assist eligible students with their living expenses while they
Allowances Regulations 1998                   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.
                                              The range of Student Allowance rates that students are paid vary according to living
                                              circumstances: eligibility for allowances payable to students aged under 24 years
                                              (previously 25 years) without supported children are dependent on the taxable income of
                                              both parents and include an "at home" or "away from home" rate depending on the
                                              student's living circumstances; Allowances payable to single students aged 24 years or
                                              over are not targeted on parental income and do include an "at home" or "away from home"
                                              rate depending on the student's living circumstances; and rates to sole parents with
                                              children are the same as for the Domestic Purposes Benefit. This Allowance is inclusive of
                                              taxation and is after deductions for debt establishments.

Student Allowance Transfer Grant is paid under   The Student Allowance Transfer Grant Programme pays a non-taxable amount to students
the Student Allowance Transfer Grant             with a dependant (spouse or child) who would otherwise suffer hardship during the stand-
Programme pursuant to section 124(1)(d) of the   down period while transferring from a student allowance to a working-age benefit. The
Social Security Act 1964                         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

                                                        Year of           2009/10       2010/11      2011/12       2012/13       2013/14
                                                        First            Budgeted        Budget     Estimated     Estimated     Estimated
Policy Initiative                                       Impact               $000          $000          $000          $000          $000
Current Government

Budget 2010 Tax Package                                 2010/11                  -         (373)       (1,506)       (1,163)        (844)

Increasing Medical Training Places                      2010/11                  -            28           89           149           198

Meet Some Additional Demand for Tertiary Education      2010/11                  -        1,326         2,959         2,935         2,880

Maintain 2010 EFTS in the University and Polytechnic    2010/11                  -        3,413         6,839         5,757         5,492
Sectors

Student Support Savings Package                         2010/11                  -        4,706        10,292         9,267         9,298

Increasing Medical Training Places                      2009/10               107           301           462           628           628

Wānanga Response to Job Summit and Enrolment            2009/10               477           154              -             -             -
Pressures




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                                                        Year of          2009/10      2010/11    2011/12     2012/13     2013/14
                                                        First           Budgeted       Budget   Estimated   Estimated   Estimated
Policy Initiative                                       Impact              $000         $000        $000        $000        $000
Previous Government

Increasing the student allowance parental income        2008/09              8,207      8,464      8,727       8,727       8,727
threshold by 10%
Lowering the age limit for student allowance parental   2008/09             19,638     20,833     22,041      22,041      22,041
income testing by one year

Student Achievement Component: Access in priority       2008/09              3,444      2,073       (921)       (921)       (921)
areas
Annual Adjustment of Student Allowance Personal         2007/08                233       231         231         231         231
Income Abatement Threshold

Increasing the Student Allowances Parental Income       2007/08              5,121      5,283      5,283       5,283       5,283
Threshold by 10%

Aligning Student Support with Funded Qualifications     2006/07             (5,114)   (5,114)     (5,114)     (5,114)     (5,114)

Increasing the Student Allowance Parental Income        2006/07              4,473      4,473      4,473       4,473       4,473
Thresholds

Student Allowances for Doctoral Students                2006/07              1,363      1,363      1,363       1,363       1,363

Adjust the Student Allowances Personal Income           2005/06                968       968         968         968         968
Threshold and Abatement Regime

Increase the Parental Income Threshold Disregard for    2005/06              3,399      3,399      3,399       3,399       3,399
Families with More than One Student
Introduce a Parental Income Threshold Disregard for     2005/06              1,157      1,157      1,157       1,157       1,157
Separated Parents



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

                                                                  2009/10             2010/11    2011/12     2012/13     2013/14

                                                                        Estimated
                                                          Budgeted          Actual    Budget    Estimated   Estimated   Estimated
                                                              $000           $000       $000         $000        $000        $000

Total Appropriation                                          44,645         44,645     36,241     30,762      28,137      28,137

Merit Scholarships                                            8,699          8,699      5,700      1,800         450         450

Scholarships and NQF/NCEA Awards                              4,639          4,639      4,639      4,639       4,639       4,639

Step Up Scholarships                                          7,724          7,724      5,118      2,139         864         864

TeachNZ Scholarships                                         23,583         23,583     20,784     22,184      22,184      22,184




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Reasons for Change in Appropriation
This is a capped item with changes representing policy decisions to cease awarding new Bonded Merit
and Step Up scholarships.

Conditions on Use of Appropriation

Reference                                      Conditions

Merit Scholarships are paid under Cabinet      Merit Scholarships recognise New Zealand's most academically capable students. The
decisions                                      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       Scholarship and National Qualifications Framework (NQF)/National Certificate of
under Cabinet decisions                        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    Step Up Scholarships are for students from low income backgrounds who are studying
decisions                                      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               TeachNZ Scholarships assist with study to become an early childhood education teacher, a
under section 139E of the Education Act 1989   Māori medium teacher or a teacher of specific secondary school subjects. Scholarship
                                               recipients have fees paid, and full-time students receive an additional non-taxable
                                               allowance for costs. Scholarship recipients are bonded to teach in New Zealand for a
                                               period equivalent to the period of assistance, and may have all or part of their scholarship
                                               payments recovered as a Student Loan under section 307AC of the Education Act 1989 if
                                               the bond is breached.



Current and Past Policy Initiatives

                                                      Year of            2009/10         2010/11       2011/12        2012/13        2013/14
                                                      First             Budgeted          Budget      Estimated      Estimated      Estimated
Policy Initiative                                     Impact                $000            $000           $000           $000           $000
Current Government

Cease Awarding Bonded Merit and Step Up               2009/10              (7,929)       (16,047)       (23,526)      (26,151)       (26,151)
Scholarships

Previous Government

Expansion of Bonded Merit Scholarship Scheme          2008/09                3,000          4,500         5,100          5,100          5,100

Expansion and Redesign of Step Up Scholarships        2007/08                4,524          5,535         5,535          5,535          5,535

Expanding Bonded Merit Scholarships                   2006/07                5,100          5,100         5,100          5,100          5,100

Introduce Bonded Merit Scholarships                   2005/06                4,800          4,800         4,800          5,100          5,100

New Zealand Scholarship 2005 and Beyond               2005/06                1,592          1,592         1,592          1,592          1,592




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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
                                                                   2009/10                 2010/11       2011/12        2012/13       2013/14

                                                                          Estimated
                                                            Budgeted          Actual        Budget     Estimated      Estimated     Estimated
                                                                $000           $000           $000          $000           $000          $000

Total Appropriation                                            23,166         22,754        26,157        27,203         27,753        28,371

Employment Transition Programme                                   311            311           365            382           390            399

New Employment Transition Grants                                  125            125           128            134           137            140
Seasonal Work Assistance                                          248            248           243            253           259            265

Transition to Work Grant                                       22,070        22,070         25,421        26,434         26,967        27,567


Reasons for Change in Appropriation
The Transition to Work Grant is the largest component and dominates trends in this appropriation. Growth
in expenditure from 2009/10 to 2010/11 is due to greater demand as more people need assistance to
move into employment as the economy recovers. Expenditure growth thereafter is largely due to
increases in living costs, prices relating to job search activities and costs associated with entering
employment.

Conditions on Use of Appropriation
Reference                                         Conditions

New Employment Transition Grants are paid         New Employment Transition Grants provide payments to clients with a dependent child or
under the New Employment Transition Grant         children during the first six months that their benefit is stopped due to gaining employment.
Programme pursuant to section 124(1)(d) of the    A payment can be made when the client is unable to work because they, their partner or
Social Security Act 1964                          dependent children become sick or because of a breakdown in childcare arrangements.
                                                  Payments are non-taxable and non-recoverable.

Employment Transition Assistance is paid          The Employment Transition Assistance pays assistance to former Invalid's Benefit
under the Employment Transition Programme         recipients who have completed an Employment Trial (this is when a person on Invalid's
pursuant to section 124(1)(d) of the Social       Benefit can work 15 hours or more in open employment for an agreed period of up to six
Security Act 1964                                 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        Seasonal Work Assistance provides assistance to people who left benefit to take
under the Seasonal Work Assistance                up seasonal horticultural worker and who cannot work and lose income due to adverse
Programme pursuant to sections 5                  weather conditions. It pays a non-taxable weekly amount up to the net income lost for the
and 124(1)(d) of the Social Security Act 1964     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        The Transition to Work Grant provides flexible non-recoverable financial assistance to help
Transition to Work Grant Programme pursuant       clients meet the essential costs incurred when transitioning into employment. The Grant is
to section 124(1)(d) of the Social Security Act   available to beneficiaries, low-income earners returning to the workforce or transferring
1964                                              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.




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Current and Past Policy Initiatives

                                                         Year of            2009/10        2010/11       2011/12        2012/13       2013/14
                                                         First             Budgeted         Budget      Estimated      Estimated     Estimated
Policy Initiative                                        Impact                $000           $000           $000           $000          $000

Current Government

Budget 2010 Tax Package                                  2010/11                    -           386            538           547            559

Previous Government

Working New Zealand: Work-Focused Support:               2006/07               8,318          8,322          8,322         8,322          8,322
Support and Services


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
                                                                   2009/10                 2010/11        2011/12        2012/13       2013/14

                                                                           Estimated
                                                            Budgeted           Actual       Budget      Estimated      Estimated     Estimated
                                                                $000            $000          $000           $000           $000          $000

Total Appropriation                                            947,867       938,662       969,194        931,208        848,645       774,411



Reasons for Change in Appropriation
The increase in expenditure between 2009/10 and 2010/11 reflects an increase in the number of
recipients as well as the impact of indexation. The fall in expenditure from 2010/11 onwards is due to
falling unemployment benefit numbers flowing from a recovering economy more than offsetting cost of
living adjustments. The Tax Reform Package lowers gross expenditure from 2010/11 onwards.

Conditions on Use of Appropriation
Reference                                         Conditions

Unemployment Benefit is paid under sections       The Unemployment Benefit is available for people who are not in full-time employment but
88A to 123D of the Social Security Act 1964,      are looking for and available for work. It is a work-tested benefit. Net weekly rates depend
and, for Unemployment Benefit on grounds of       on age and family status. The sole parent rate is the same as for the Domestic Purposes
hardship, as set out in the Emergency Benefit     Benefit. This Benefit is inclusive of tax and is after deductions for debt establishments and
and Benefits on Ground of Hardship Ministerial    overseas pension recoveries.
Direction pursuant to section 5 of the Social     Unemployment benefit on the grounds of hardship may be paid to an applicant who meets
Security Act 1964                                 the job seeking criteria for unemployment benefit, but not the residency requirements and is
                                                  in hardship.
Emergency Benefit is paid under sections 61       Emergency Benefit is payable on the grounds of hardship to people who are unable to earn
and 61A of the Social Security Act 1964 and the   a sufficient livelihood and cannot receive any other benefit. Emergency Benefit can also be
Emergency Benefit and Benefits on Ground of       paid instead of, or in substitution for, a statutory benefit the person is eligible to receive.
Hardship Ministerial Direction pursuant to        Rates of payment can vary but cannot exceed the rate of the analogous income tested
section 5 of the Social Security Act 1964         benefit that would be otherwise payable. This Benefit is inclusive of tax and is after
                                                  deductions for debt establishments and overseas pension recoveries.




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Current and Past Policy Initiatives

                                                        Year of    2009/10    2010/11     2011/12     2012/13       2013/14
                                                        First     Budgeted     Budget    Estimated   Estimated     Estimated
Policy Initiative                                       Impact        $000       $000         $000        $000          $000

Current Government

Increasing Medical Training Places                      2011/12           -          -          2             3           5

Budget 2010 Tax Package                                 2010/11           -    (2,953)     (2,923)     (2,714)       (2,772)

Employment Initiatives                                  2010/11           -   (11,429)           -             -           -

Maintain 2010 EFTS in the University and Polytechnic    2010/11           -        82         144           124         120
Sectors
Meet Some Additional Demand for Tertiary Education      2010/11           -        30          61            61          60

Student Support Savings Package                         2010/11           -       135         230           211         212

Opportunities for Young People During the Economic      2009/10     (7,603)    (2,534)           -             -           -
Downturn

Student Job Search and Additional Job Ops Places        2009/10     (1,989)          -           -             -           -

Increasing Medical Training Places                      2009/10         11         30          46            62          62

Wānanga Response to Job Summit and Enrolment            2009/10          8          8            -             -           -
Pressures
Previous Government

Increasing the Student Allowance Parental Income        2008/09      1,367      1,463        1,565         1,565      1,565
Threshold by 10%
Lowering the age limit for Student Allowance Parental   2008/09      1,876      1,984        2,097         2,097      2,097
Income Testing by one year

Student Achievement Component: Access in priority       2008/09        324        171        (152)         (152)       (152)
areas
Annual Adjustment of Student Allowance Personal         2007/08         10         10          10            10          10
Income Abatement Threshold

Increasing the Student Allowances Parental Income       2007/08        510        530         530           530         530
Threshold by 10%
Aligning Student Support with Funded Qualifications     2006/07      (724)       (724)       (724)         (724)       (724)

Increasing the Student Allowance Parental Income        2006/07        520        520         520           520         520
Thresholds
Working New Zealand: Work-Focused Support:              2006/07    (17,706)   (17,979)    (17,979)    (17,979)      (17,979)
Support and Services

Adjust the Student Allowances Personal Income           2005/06        549        549         549           549         549
Threshold and Abatement Regime

Increase the Parental Income Threshold Disregard for    2005/06        534        534         534           534         534
Families with More than One Student
Introduce a Parental Income Threshold Disregard for     2005/06         58         58          58            58          58
Separated Parents




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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

                                                                 2009/10               2010/11       2011/12       2012/13        2013/14

                                                                        Estimated
                                                          Budgeted          Actual      Budget      Estimated     Estimated     Estimated
                                                              $000           $000         $000           $000          $000          $000

Total Appropriation                                          72,993        72,655        72,419        71,558        68,431        65,328



Reasons for Change in Appropriation
The decrease in expenditure each year is due to the decreasing number of recipients more than offsetting
cost of living adjustments. A change in the abatement rules as part of Future Focus, which allows benefit
recipients to earn more part-time income before their benefit is abated, is expected to increase
expenditure from 2010/11 onwards. The Tax Reform Package lowers gross expenditure from 2010/11
onwards.

Conditions on Use of Appropriation

Reference                                       Conditions

Widow's Benefit is paid under sections 21 and   Widow's Benefit provides support to women whose spouses or partners have died. If the
24 of the Social Security Act 1964              woman 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 depend on
                                                whether the applicant has dependants. 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

                                                       Year of           2009/10       2010/11       2011/12       2012/13       2013/14
                                                       First            Budgeted        Budget      Estimated     Estimated     Estimated
Policy Initiative                                      Impact               $000          $000           $000          $000          $000

Current Government

Budget 2010 Tax Package                                2010/11                   -        (146)         (150)         (148)         (153)

Future Focus                                           2010/11                   -          694           875           824           774

Previous Government

Working New Zealand: Work-Focused Support:             2006/07                 44            44            44            44            44
Support and Services
Enhanced Work Focus for Domestic Purposes Benefit      2005/06             (1,224)      (1,224)       (1,224)       (1,224)        (1,224)
Clients




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VOTE SOCIAL DEVELOPMENT




Part 5 - Details and Expected Results for Other
Expenses
Part 5.2 - Non-Departmental Other Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes or Objectives of Appropriations          Appropriations

More people get into work and stay in work                          Debt Write-downs, Employment Assistance, Job Support Scheme,
                                                                    Mainstream Supported Employment Programme, and Out of School
                                                                    Care Programmes.
More children are safe                                              Out of School Care Programmes.

Improved quality of life for older people                           Debt Write-downs.



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

                                                                                     2009/10                              2010/11

                                                                            Budgeted           Estimated Actual            Budget
                                                                                $000                      $000               $000
Total Appropriation                                                           849,115                  821,835            828,285



Reasons for Change in Appropriation
The increase in this appropriation is directly influenced by an increase in the Student Loan borrowing and
a decrease in Student Loan initial fair value ratio which is driven by the economic downturn.

Expected Results

Conditions on Use of Appropriation

Reference                                       Conditions

New Zealand International Financial Reporting   Financial Instruments: Recognition and Measurement.
Standard 39




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Current and Past Policy Initiatives

                                                        Year of    2009/10     2010/11     2011/12     2012/13      2013/14
                                                        First     Budgeted      Budget    Estimated   Estimated    Estimated
Policy Initiative                                       Impact        $000        $000         $000        $000         $000

Current Government

Budget 2010 Tax Package                                 2010/11           -      11,600      17,100      17,300      17,500

Future Focus - Study Support                            2010/11           -        404         710          724           724

Increasing Medical Training Places                      2010/11           -         73         180          291           401

Maintain 2010 EFTS in the University and Polytechnic    2010/11           -       7,228       8,610       7,891       7,781
Sectors
Meet Some Additional Demand for Tertiary Education      2010/11           -       2,894       4,132       4,203       4,280

Relax Fee Regulation                                    2010/11           -       3,086      10,118      17,094      25,087

Student Support Savings Package                         2009/10     (6,585)    (43,290)    (59,924)    (59,443)     (63,219)

Study Costs for Beneficiaries: Time-limited and         2009/10         82          89            -            -             -
Targeted Recoverable Assistance
Bonus for voluntary student loan repayments             2009/10     (1,151)     (1,223)     (1,296)     (1,363)      (1,363)

Increasing Medical Training Places                      2009/10        152         374         600          833           833

Cease Awarding Bonded Merit and Step-Up                 2009/10        802        1,621       2,381       2,645       2,645
Scholarships

Wānanga Response to Job Summit and Enrolment            2009/10        210          69            -            -             -
Pressures
Previous Government

Expansion of Bonded Merit Scholarship Scheme            2008/09       (328)       (493)       (558)       (558)        (558)

Increasing the Student Allowance Parental Income        2008/09       (899)       (927)       (956)       (956)        (956)
Threshold by 10%

Increasing the Student Loan Scheme Living cost          2008/09       5,724       7,117       7,855       7,855       7,855
component to $155 per week
Lowering the age limit for Student Allowance Parental   2008/09     (2,150)     (2,281)     (2,413)     (2,413)      (2,413)
Income Testing by one year

Student Achievement Component: Access in priority       2008/09       3,646       2,846     (1,840)     (1,840)      (1,840)
areas
Annual Adjustment of Student Allowance Personal         2007/08        (26)        (26)        (26)         (26)          (26)
Income Abatement Threshold

Expansion and Redesign of Step Up Scholarships          2007/08     (1,687)     (2,064)     (2,064)      (2,064)     (2,064)

Increasing the Student Allowances Parental Income       2007/08       (573)       (591)       (591)       (591)        (591)
Threshold by 10%

Updating the Student Component Funding Rate for         2007/08     (2,348)     (2,348)     (2,348)     (2,348)      (2,348)
2008 for Tertiary Education Institutions

Aligning Student Support with Funded Qualifications     2006/07     (7,940)     (7,940)     (7,940)     (7,940)      (7,940)

Expanding bonded Merit Scholarships                     2006/07     (1,240)     (1,240)     (1,240)      (1,240)     (1,240)

Increasing the Student Allowance Parental Income        2006/07       (401)       (401)       (401)       (401)        (401)
Thresholds

Student Allowances for Doctoral Students                2006/07       (122)       (122)       (122)       (122)        (122)

Adjust the Student Allowances Personal Income           2005/06        (30)        (30)        (30)         (30)          (30)
Threshold and Abatement Regime




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VOTE SOCIAL DEVELOPMENT




                                                       Year of    2009/10        2010/11         2011/12         2012/13       2013/14
                                                       First     Budgeted         Budget        Estimated       Estimated     Estimated
Policy Initiative                                      Impact        $000           $000             $000            $000          $000
Increase the Parental Income Threshold Disregard for   2005/06       (105)           (105)          (105)           (105)          (105)
Families with More than One Student

Increase the Trainee Medical Intern Grant              2005/06       (128)           (128)          (128)           (128)          (128)

Interest Free Student Loans                            2005/06    504,972        504,972         504,972         504,972        504,972

Introduce a Parental Income Threshold Disregard for    2005/06        (30)            (30)           (30)            (30)           (30)
Separated Parents
Introduce Bonded Merit Scholarships                    2005/06       (416)           (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

                                                                               2009/10                                           2010/11

                                                                      Budgeted               Estimated Actual                     Budget
                                                                          $000                          $000                        $000
Total Appropriation                                                     113,461                      113,461                      95,552

Wage Subsidies                                                           71,749                       71,749                      53,100

Development Services                                                     22,479                       22,479                      21,794

Up-skilling Assistance                                                       9,893                     9,893                      11,219



Reasons for Change in Appropriation
The decrease in this appropriation is largely due to more one-off funding in 2009/10 than 2010/11 for
employment initiatives to mitigate the economic downturn.

Expected Results

                                                                               2009/10                                           2010/11

                                                                      Budgeted               Estimated Actual                     Budget
                                                                      Standard                      Standard                    Standard

The number of Employment Assistance interventions will be          New measure                 New measure                  45,000-55,000




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Conditions on Use of Appropriation

Reference                                         Conditions

Ministerial Guidelines for use of Employment      The Ministerial Guidelines took effect from 30 April 2007. The eight clusters are:
Assistance                                        •   Development Services
                                                  •   Work Experience
                                                  •   Community Activities
                                                  •   Wage Subsidies
                                                  •   Up Skills Assistance
                                                  •   Self Employment Assistance
                                                  •   Extra Employment Support for People with ill Health or Disability
                                                  •   Innovation and Market Responsiveness.


Current and Past Policy Initiatives
                                                         Year of            2009/10         2010/11           2011/12         2012/13     2013/14
                                                         First             Budgeted          Budget          Estimated       Estimated   Estimated
Policy Initiative                                        Impact                $000            $000               $000            $000        $000

Current Government

Employment Initiatives                                   2010/11                    -           31,840               -               -           -

Opportunities for Young People During the Economic       2009/10              42,375             3,225               -               -           -
Downturn
Student Job Search and Additional Job Ops Places         2009/10               8,889                  -              -               -           -

Previous Government

Expanding the Community Organisation Grants              2008/09               (373)             (500)           (500)           (500)       (500)
Scheme

Skills Investment Subsidy Expenditure Reduction          2008/09             (7,314)            (7,580)        (7,898)         (7,898)     (7,898)

Supporting a Sustainable NGO Social Services Sector: 2008/09                 (9,500)        (10,000)          (10,000)        (10,000)    (10,000)
Net Operating Impact (Pathway to Partnership)

Working New Zealand: Work-Focused Support:               2006/07             (6,000)            (6,000)        (6,000)         (6,000)     (6,000)
Support and Services
Addressing Long-Term Unemployment                        2005/06               6,500             6,500           6,500          6,500       6,500

New Services for Sickness and Invalid's Benefit          2005/06               1,000             1,000           1,000          1,000       1,000
Recipients


Job Support Scheme (M63)

Scope of Appropriation
 This appropriation is limited to providing financial assistance for a limited period for employees who
 have entered into an agreement with their employers to reduce their working hours on a temporary
 basis and to receive this assistance.


Expenses
                                                                                          2009/10                                          2010/11

                                                                                 Budgeted                 Estimated Actual                  Budget
                                                                                     $000                            $000                     $000
Total Appropriation                                                                     2,920                       2,920                     1,292




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Reasons for Change in Appropriation
The decrease in this appropriation is due to more funding in 2009/10 than 2010/11 being used for other
employment initiatives.

Expected Results

                                                                                        2009/10                                          2010/11

                                                                                Budgeted                Estimated Actual                  Budget
                                                                                Standard                       Standard                 Standard

The number of jobs saved through the Job Support Scheme will                 1,500-2,000                    1,500-2,000                  100-200
be no fewer than


Conditions on Use of Appropriation

Reference                                         Conditions

The Job Support Scheme is administered in         The Job Support Scheme provides an allowance to large private sector employers with 50
accordance with Cabinet decisions, and            or more employees who have negotiated a voluntary agreement with unions (where
pursuant to specific contracts entered into       applicable) and full-time workers that reduces the hours of work for workers who are party
between the Ministry of Social Development and    to the agreement by up to ten hours a fortnight provided the reduction does not take the
an affected employer                              hours of work to less than 30 per week. The payment, equivalent to the rate of the adult
                                                  minimum wage for up to five hours per fortnight for each worker with reduced hours, can be
                                                  paid to no more than ten times as many workers in a firm as the number of jobs that are
                                                  being saved. The Scheme will run from 27 March 2009 to 31 December 2010.


Current and Past Policy Initiatives

                                                         Year of           2009/10        2010/11           2011/12         2012/13     2013/14
                                                         First            Budgeted         Budget          Estimated       Estimated   Estimated
Policy Initiative                                        Impact               $000           $000               $000            $000        $000
Current Government

Employment Initiatives                                   2009/10            (8,400)           (4,200)              -               -           -

Study Costs for Beneficiaries: Time-limited and          2009/10              (287)            (312)               -               -           -
Targeted Recoverable Assistance

Job Support Scheme                                       2009/10            11,607             5,804               -               -           -



Mainstream Supported Employment Programme (M63)

Scope of Appropriation
 This appropriation is limited to salary subsidies, training for participants, supervisors and placement
 specialists, and funding for other employment support provided by the Mainstream Supported
 Employment Programme.



Expenses

                                                                                        2009/10                                          2010/11

                                                                                Budgeted                Estimated Actual                  Budget
                                                                                    $000                           $000                     $000
Total Appropriation                                                                   4,159                       4,159                     3,472




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Reasons for Change in Appropriation
The decrease in this appropriation is due savings identified in the Review of Contracted Services.

Expected Results

                                                                                 2009/10                                           2010/11

                                                                           Budgeted              Estimated Actual                   Budget
                                                                           Standard                     Standard                  Standard
The number of participants in the Mainstream Supported                           250                         250                   200-250
Employment Programme will be

The proportion of participants who remain in Supported                 New measure                 New measure                        70%
Employment Programme for two years
The percentage of programmes reviewed show that Mainstream                       60%                        60%                       60%
programme participants have undertaken external or on-the-job
training



                                                            Year of    2009/10     2010/11           2011/12         2012/13     2013/14
                                                            First     Budgeted      Budget          Estimated       Estimated   Estimated
Policy Initiative                                           Impact        $000        $000               $000            $000        $000

Current Government

Review of Contracted Services                               2010/11          -         (1,020)        (1,020)         (1,020)      (1,020)



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

                                                                                 2009/10                                           2010/11

                                                                           Budgeted              Estimated Actual                   Budget
                                                                               $000                         $000                      $000

Total Appropriation                                                          18,748                       18,748                    18,255



Reasons for Change in Appropriation
The decrease in this appropriation is due to savings identified in the Review of Contracted Services.

Expected Results

                                                                                 2009/10                                           2010/11

                                                                           Budgeted              Estimated Actual                   Budget
                                                                           Standard                     Standard                  Standard

The number of new programmes funded will be                                  80-100                       80-100                    80-100

The number of assistance grants paid to providers will be                1,100-1,300                 1,100-1,300                1,100-1,300




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VOTE SOCIAL DEVELOPMENT




Conditions on Use of Appropriation

Reference                                     Conditions

Cabinet decision                              The Cabinet agreed the maximum grant amount per programme. The maximum amount is
                                              $16,000 GST exclusive.



Current and Past Policy Initiatives

                                                     Year of          2009/10       2010/11      2011/12      2012/13     2013/14
                                                     First           Budgeted        Budget     Estimated    Estimated   Estimated
Policy Initiative                                    Impact              $000          $000          $000         $000        $000

Current Government

Review of Contracted Services                        2010/11                  -        (432)         (734)     (1,034)     (1,584)

Previous Government

Out of School Services Five-Year Action Plan: Revised 2007/08            3,311         3,250         3,050      3,050       3,050
Recommendations
Enhancing Parents' Work Choices                      2005/06             8,149         8,149         8,149      8,149       8,149



Reporting Mechanisms

Appropriation                                        Reporting Mechanism

Community Labour Market Development Assistance       Annual Report of the Ministry of Social Development

Contingency and Innovations Fund                     Annual Report of the Ministry of Social Development

Debt Write-downs                                     Annual Report of the Ministry of Social Development

Employment Assistance                                Annual Report of the Ministry of Social Development

Out of School Care Programmes                        Annual Report of the Ministry of Social Development


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




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Part 6 - Details and Expected Results for Capital
Expenditure
Part 6.1 - Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes or Objectives of Appropriations        Appropriations

More people get into work and stay in work                        Ministry of Social Development - Capital Expenditure PLA.

More children are safe                                            Ministry of Social Development - Capital Expenditure PLA.

More young people stay on track                                   Ministry of Social Development - Capital Expenditure PLA.

Reduced re-offending by young people                              Ministry of Social Development - Capital Expenditure PLA.

Improved quality of life for older people                         Ministry of Social Development - Capital Expenditure PLA.

Communities are better able to support themselves                 Ministry of Social Development - Capital Expenditure PLA.



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

                                                                                   2009/10                                    2010/11

                                                                          Budgeted           Estimated Actual                 Budget
                                                                              $000                      $000                    $000

Forests/Agricultural                                                                 -                      -                       -

Land                                                                                 -                      -                       -

Property, Plant and Equipment                                                 1,540                    1,540                     780

Intangibles                                                                  39,458                   39,458                   21,241

Other                                                                        76,575                   76,575                   53,335

Total Appropriation                                                         117,573                  117,573                   75,356



Reasons for Change in Appropriation
Completion of the Youth Justice Central building project in July 2010 is the main reason for the decrease
in planned capital expenditure in 2010/11 when compared to levels of expenditure in the prior year.




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VOTE SOCIAL DEVELOPMENT




Expected Results

                                                                                       2009/10                                         2010/11

                                                                              Budgeted                Estimated Actual                  Budget
                                                                              Standard                       Standard                 Standard

Residential Buildings                                                            30,350                         30,350                  25,289

Software Development                                                             39,458                         39,458                  21,241
Computer Hardware                                                                11,865                         11,865                    9,000

Motor Vehicles                                                                       8,000                       8,000                    8,000

Plant and Equipments                                                                 1,540                       1,540                     780

Furniture and Fitouts                                                            26,360                         26,360                  11,046

Total Appropriation                                                             117,573                        117,573                  75,356


The table above reflects Vote Social Development's planned capital expenditure in 2010/11 and
estimated expenditure levels in the current financial year 2009/10.

Part 6.2 - Non-Departmental Capital Expenditure

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes or Objectives of Appropriations                                    Appropriations

More people get into work and stay in work                                                    Recoverable Assistance, and Student Loans.

More young people stay on track                                                               Recoverable Assistance, and Student Loans.

Reduced re-offending by young people                                                          Recoverable Assistance, and Student Loans.

Improved quality of life for older people                                                     Recoverable 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

                                                                 2009/10                 2010/11          2011/12         2012/13     2013/14

                                                                       Estimated
                                                         Budgeted          Actual            Budget      Estimated       Estimated   Estimated
                                                             $000           $000               $000           $000            $000        $000
Total Appropriation                                          179,205       177,424       179,031          180,009         180,199     187,692

Recoverable Advance Payment of Benefit                       153,998       153,998       155,070          155,059         154,494     160,331

Recoverable Special Needs Grant                                8,945         8,945            9,114          9,637          9,989      10,659

Recoverable Assistance Programme                              14,481        14,481           14,847         15,313         15,716      16,702




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Reasons for Change in Appropriation
The increase in expenditure from 2009/10 to 2010/11 reflects increases in beneficiary numbers and
increased levels of financial hardship. Thereafter expenditure is expected to be reasonably flat with some
growth resuming in the final year as the underlying rise in some benefits is no longer offset by a fall in
other benefits.

Conditions on Use of Appropriation

Reference                                                             Conditions

Payments are made under the Welfare Programme for Recoverable         The Social Security Act 1964 regulates access to Recoverable
Assistance for Non-Beneficiaries, and relevant parts of Welfare       Assistance. The types of assistance include:
Programme for Special Needs Grants pursuant to the Social Security    •    Recoverable Advance Payment of Benefit
Act 1964, both pursuant to section 124(1)9d) of the Social Security
Act 1964, and the Ministerial Direction for Advance Payment of        •    Recoverable Special Needs Grant
Benefits pursuant to section 5 of the Social Security Act 1964        •    Recoverable Assistance Programme.



Current and Past Policy Initiatives

                                                       Year of             2009/10      2010/11     2011/12       2012/13      2013/14
                                                       First              Budgeted       Budget    Estimated     Estimated    Estimated
Policy Initiative                                      Impact                 $000         $000         $000          $000         $000

Current Government

Future Focus - Study Support                           2010/11                     -      1,010        1,776          1,809          1,809

Study Costs for Beneficiaries: Time-limited and        2009/10                  205         223              -            -              -
Targeted Recoverable Assistance



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

                                                                 2009/10                2010/11      2011/12        2012/13     2013/14

                                                                          Estimated
                                                          Budgeted            Actual     Budget    Estimated     Estimated    Estimated
                                                              $000             $000        $000         $000          $000         $000
Total Appropriation                                       1,579,251       1,543,251    1,616,144   1,648,380     1,664,018    1,675,634



Reasons for Change in Appropriation
The number of students drawing down loans and the amount of each loan are the key drivers of this item.
Enrolments increased sharply in both the 2009 and 2010 academic years and are expected to remain
high in the 2011 academic year. Policy changes listed below are expected to reduce the number
of people eligible for loans while other policy effects and higher cost of living impacts (including effects of




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VOTE SOCIAL DEVELOPMENT




the Tax Reform Package) are expected to raise the total average loan amounts. These effects are mostly
offsetting but leave a net increase in annual student loan expenditure.

Conditions on Use of Appropriation

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

                                                        Year of          2009/10       2010/11     2011/12       2012/13      2013/14
                                                        First           Budgeted        Budget    Estimated     Estimated    Estimated
Policy Initiative                                       Impact              $000          $000         $000          $000         $000

Current Government

Budget 2010 Tax Package                                 2010/11                 -       21,200       31,100       31,500        31,900

Increasing Medical Training Places                      2010/11                 -          153          380          614           846

Maintain 2010 EFTS in the University and Polytechnic    201/011                 -       15,747       18,758       17,191        16,951
Sectors

Meet Some Additional Demand for Tertiary Education      2010/11                 -        6,305        9,002         9,157        9,324

Relax Fee Regulation                                    2010/11                 -        5,610       18,392       31,074        45,604

Student Support Savings Package                         2010/11                 -     (65,936)      (93,547)     (91,697)     (98,386)

Bonus for voluntary student loan repayments             2009/10           20,677        21,962       23,277       24,472        24,472

Increasing Medical Training Places                      2009/10              388           955        1,533         2,129        2,129

Cease Awarding Bonded Merit and Step-Up                 2009/10             2,048        4,142        6,081         6,756        6,756
Scholarships
Wānanga Response to Job Summit and Enrolment            2009/10              512           169             -            -             -
Pressures

Previous Government

Expansion of Bonded Merit Scholarship Scheme            2008/09             (810)      (1,215)       (1,377)      (1,377)       (1,377)

Increasing the Student Allowance Parental Income        2008/09           (2,216)      (2,285)       (2,356)      (2,356)       (2,356)
Threshold by 10%

Increasing the Student Loan Scheme Living cost          2008/09           14,115        17,550       19,370       19,370        19,370
component to $155 per week
Lowering the age limit for Student Allowance Parental   2008/09           (5,302)      (5,625)       (5,951)      (5,951)       (5,951)
Income Testing by one year

Student Achievement Component: Access in priority       2008/09             8,991        7,019       (4,538)      (4,538)       (4,538)
areas
Annual Adjustment of Student Allowance Personal         2007/08              (63)         (62)          (62)         (62)          (62)
Income Abatement Threshold

Expansion and Redesign of Step Up Scholarships          2007/08           (4,072)      (4,982)       (4,982)      (4,982)       (4,982)

Increasing the Student Allowances Parental Income       2007/08           (1,383)      (1,426)       (1,426)      (1,426)       (1,426)
Threshold by 10%

Updating the Student Component Funding Rate for         2007/08          (18,246)     (18,246)      (18,246)     (18,246)     (18,246)
2008 for Tertiary Education Institutions
Aligning Student Support with Funded Qualifications     2006/07          (23,915)     (23,915)      (23,915)     (23,915)     (23,915)

Expanding Bonded Merit Scholarships                     2006/07           (3,735)      (3,735)       (3,735)      (3,735)       (3,735)




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                                                       Year of          2009/10       2010/11       2011/12     2012/13     2013/14
                                                       First           Budgeted        Budget      Estimated   Estimated   Estimated
Policy Initiative                                      Impact              $000          $000           $000        $000        $000
Increasing the Student Allowance Parental Income       2006/07            (1,208)      (1,208)       (1,208)     (1,208)     (1,208)
Thresholds

Student Allowances for Doctoral Students               2006/07             (368)         (368)         (368)       (368)       (368)

Adjust the Student Allowances Personal Income          2005/06             (261)         (261)         (261)       (261)       (261)
Threshold and Abatement Regime

Increase the Parental Income Threshold Disregard for   2005/06             (918)         (918)         (918)       (918)       (918)
Families with More than One Student
Increase the Trainee Medical Intern Grant              2005/06            (1,123)      (1,123)       (1,123)     (1,123)     (1,123)

Interest Free Student Loans                            2005/06           358,001      358,001       358,001     358,001     358,001

Introduce a Parental Income Threshold Disregard for    2005/06             (264)         (264)         (264)       (264)       (264)
Separated Parents

Introduce Bonded Merit Scholarships                    2005/06            (3,648)      (3,648)       (3,648)     (3,648)     (3,648)

Non-Asset Procedure Debtors-Access to Student          2005/06             1,706         1,706         1,706      1,706       1,706
Loans



Reporting Mechanisms

Appropriation                                          Reporting Mechanism

Recoverable Assistance                                 Annual Report of the Ministry of Social Development

Student Loans                                          Annual Report of the Student Loans Scheme


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




                       SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.10           181

				
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