1 This paper seeks agreement to the final Terms of Reference (the Terms) for the Welfare Expert Advisory Group (WEAG). The final Terms are attached.

Transcription

1 Office f the Minister fr Scial Develpment Chair Cabinet Scial Wellbeing Cmmittee WELFARE EXPERT ADVISORY GROUP TERMS OF REFERENCE Prpsal 1 This paper seeks agreement t the final Terms f Reference (the Terms) fr the Welfare Expert Advisry Grup (WEAG). The final Terms are attached. 2 On 28 March 2018, Cabinet Appintments and Hnurs Cmmittee agreed, with pwer t act, t appint Prfessr Cynthia (Cindy) Kir as the Chair f the WEAG [APH-18-Min-0032]. 3 I have als submitted a cmpanin paper t the Appintments and Hnurs Cabinet Cmmittee nting my intentin t appint the remaining WEAG membership and their fees. Backgrund 4 This Gvernment has cmmitted t verhauling the welfare system. The welfare system has incrementally evlved since its establishment in We have reached a critical juncture and it is time t evaluate whether ur scial welfare system remains fit fr purpse in cntemprary New Zealand. 5 On 26 March 2018, Cabinet agreed [CAB-18-MIN-0102 refers]: that a WEAG be established t assist with cnsideratin f the verhaul wrk prgramme, and reprt t Ministers by Nvember 2018 t a tw-phased apprach t verhaul the welfare system that fr phase ne f the welfare verhaul, the WEAG reprt t Ministers in Nvember 2018 with final recmmendatins n: recmmendatins t amend the legislative purpse and principles f the welfare system pririty areas fr refrm which pririty areas shuld be cnsidered as part f phase ne and phase tw recmmendatins, including cstings n a pririty change/s that culd be prgressed thrugh Budget 2019 further wrk needed n pririty areas fr change in phase tw. agreed that phase tw will begin with a review f the Terms, t reflect the utcmes f phase ne and cnfirm deliverables fr phase tw agreed that phase tw f the welfare verhaul will:

2 build n phase ne pririty areas and recmmendatins, fcusing n detailed and cnsidered advice and recmmendatin n hw the prpsed Scial Security Act purpse and principles shuld be enacted system wide develp further advice n pririties that were nt able t be prgressed in phase ne prvide investment-ready advice in Nvember 2019, t supprt decisins n Budget At the time, a draft Terms was submitted t Cabinet and I was invited t reprt back with a final Terms fllwing engagement with the WEAG Chair. Cmment 7 I have wrked with Ministerial clleagues, Gvernment parties, and the WEAG Chair, t finalise the Terms. As a result the final prpsed Terms differ frm thse draft Terms submitted t Cabinet n 26 March The Terms have been refined t fcus the WEAG n key issues within the welfare system and identify the high-level changes and directin needed t supprt the Gvernment s visin fr a welfare system that ensures peple: have an adequate incme and standard f living are treated with and can live in dignity are able t participate meaningfully in their cmmunities. 9 I expect the wrk f the WEAG shuld als cnsider and cntribute t the Gvernment s child pverty reductin pririty and the targets set in accrdance with the new Child Pverty Reductin Bill. Final prpsed scpe f the WEAG prgramme f wrk 10 A tw-phased apprach t the WEAG is n lnger prpsed. Instead I prpse that the WEAG deliver advice t Ministers by 28 February 2019 thrugh a written reprt n: amendments t the legislative purpse and principles f the Scial Security Act (the Act) that give effect t the visin and directin f the Gvernment hw any amendments t the purpse and principles in the Act culd be implemented system-wide advice n ther changes needed t ensure the system achieves the Gvernment s visin fr the welfare system changes t bligatins and assciated sanctins t align with the visin f the Gvernment high level recmmendatins fr imprvements t Wrking fr Families recmmendatins fr areas where the interface between the welfare system and ther systems need t be imprved either because they are nt functining well r in light f the WEAG s wrk n giving effect t the future visin fr the welfare system fr instance, ACC, educatin and training, husing, health, and justice.

3 11 In cnsidering the abve areas f wrk, the WEAG shuld give due cnsideratin t: the evlving nature f cntemprary New Zealand changes t family structures, scial needs, the changing labur market and hw these significant shifts might impact the future directin fr the welfare system ensuring simplicity in the welfare system s that it is easy t understand, and peple knw abut and are able t receive the assistance they are entitled t ecnmic and technlgical changes ensuring gd transitins t meaningful and sustainable emplyment, as well as recgnising and valuing ther psitive utcmes (such as participatin in the cmmunity and vluntary wrk) imprving utcmes fr grups f peple disprprtinately impacted by negative scial utcmes such as Māri, Pacific Peples, disabled peple and peple with health cnditins hw child wellbeing might be imprved by the recmmendatins the fiscal sustainability f their recmmendatins. Wrk and Incme culture 12 The Ministry f Scial Develpment (MSD) has wrk underway regarding the change f culture we desire within Wrk and Incme. 13 The WEAG will engage with and prvide insights and recmmendatins abut the MSD culture change wrk underway t achieve meaningful and lasting change within Wrk and Incme s that beneficiaries are treated with dignity and respect in all their interactins with the system. MSD will wrk alngside the WEAG t develp prpsals fr Budget I expect MSD fficials t undertake wrk n initiatives that culd be prgressed fr Budget This wrk is likely t be mre detailed and technical in nature and as such wuld be best placed with MSD fficials t allw the WEAG t fcus n the higher level and lnger term directin fr the welfare system, such as its purpse and principles. This will als enable the perid the WEAG perates t be extended beynd Nvember I may als seek the WEAG s advice and views n specific prpsals being prepared in the cntext f Budget Out f scpe 16 As per the previus draft Terms submitted t Cabinet the fllwing areas remain ut f scpe: New Zealand Superannuatin (NZS) Veteran s Pensin and War Pensins Student Supprt System.

4 17 The WEAG will have sme flexibility t cnsider sme matters relating t thse systems such as training and educatin. I prpse t extend the perid the WEAG will perate until February It is acknwledged that the wrk f the WEAG will nt be a simple task and it will take time. 19 The draft Terms submitted fr cnsideratin n 26 March 2018, prpsed the WEAG wuld perate until and prvide final advice and recmmendatins in Nvember Fllwing cnsultatin with my clleagues and the WEAG Chair, I nw prpse the WEAG shuld perate until 28 February 2019 and prvide final recmmendatins n later than 28 February The Nvember 2018 timing was in part necessary t ensure Budget-ready prpsals culd be prgressed fr the Budget 2019 prcess. Remving the respnsibility t deliver Budget 2019 prpsals frm the WEAG prvides us with the pprtunity t extend the timeframe fr the WEAG t reprt back with their advice. 22 Decisins n any cntinuatin f the WEAG beynd February 2019 will be made by Cabinet in March 2019 fllwing cnsideratin f the WEAG advice. 23 The Terms f Reference and agreements in this Cabinet paper supersede decisins made via the Cabinet minute n 26 March 2018 [CAB-18-MIN-0102 refers]. Next steps 24 Officials have been meeting with the WEAG Chair t start planning its wrk. I expect the first meeting will take place later in May Cnsultatin 25 Fllwing Cabinet s cnsideratin f the draft Terms n 26 March 2018, I have engaged further with my Ministerial clleagues, Gvernment parties and the WEAG Chair t develp the final Terms. Financial implicatins 26 I have sught $1.5 millin funding thrugh Budget 2018 fr the WEAG t perate until the end f Since seeking this funding there have been changes t the WEAG, including extending it until February 2019 and a prpsed additinal member. 27 9(2)(f)(iv) Human rights implicatins 28 The prpsal is cnsistent with the Human Rights Act 1993 and the New Zealand Bill f Rights Act 1990.

5 Legislative implicatins 29 There are n legislative implicatins arising directly frm these prpsals. If, fllwing the prvisin f the WEAG s final reprt, the Gvernment brings frward prpsals fr legislative change, this will g thrugh the necessary Cabinet prcesses. Regulatry impact and cmpliance cst statement 30 A Regulatry Impact Analysis (RIA) is nt required as this Cabinet paper des nt include a gvernment regulatry prpsal. A RIA will be cmpleted as part f the cnsideratin f any agreed WEAG prpsals. Gender implicatins 31 Wmen are disprprtinately represented in sme areas f the welfare system, fr example, Sle Parent Supprt benefit receipt. Pathways t educatin and sustainable wrk are difficult fr mthers, particularly but nt exclusively sle parents. The WEAG shuld ensure gender issues are cnsidered as part f any recmmendatins. Disability perspective 32 Disabled peple and peple with health cnditins make-up apprximately 50 per cent f all peple in receipt f a benefit. Any recmmended changes t the welfare system will seek input frm the representatives frm the disability sectr. Child pverty impact 33 The WEAG shuld als give due cnsideratin t interactins between their recmmendatins and the Child Wellbeing Strategy. Changes t the welfare system are expected t cntribute t the Gvernment s child pverty pririty and the targets set in accrdance with the new Child Pverty Reductin Bill. Publicity 34 Fllwing Cabinet agreement, I will make further annuncements n the Terms fr the WEAG, as well as n the Chair and full membership f the WEAG. 35 I intend t publically release this Cabinet paper at the apprpriate time. Recmmendatins 36 It is recmmended that the Cmmittee: 1 nte that n 26 March 2018, Cabinet agreed t establish an external Welfare Expert Advisry Grup t advise the Gvernment n the verhaul f the welfare system 2 nte that n 26 March 2018, Cabinet invited the Minister fr Scial Develpment t reprt back n the final Terms f Reference fr the external Welfare Expert Advisry Grup 3 nte that n 26 March 2018, Cabinet agreed t a tw-phased apprach t verhaul the welfare system

6 4 nte that n 26 March 2018, Cabinet agreed that fr phase ne the Welfare Expert Advisry Grup wuld reprt back in Nvember 2018 with final recmmendatins n: 4.1 recmmendatins t amend the legislative purpse and principles f the welfare system 4.2 pririty areas fr refrm 4.3 which pririty areas shuld be cnsidered as part f phase ne and phase tw 4.4 recmmendatins, including cstings n a pririty change/s that culd be prgressed thrugh Budget further wrk needed n pririty areas fr change in phase tw 5 nte that n 26 March 2018, Cabinet agreed that phase tw f the verhaul wuld: 5.1 build n phase ne pririty areas and recmmendatins, fcusing n detailed and cnsidered advice and recmmendatin n hw the prpsed Scial Security Act purpse and principles shuld be enacted system wide 5.2 develp further advice n pririties that were nt able t be prgressed in phase ne 5.3 prvide investment-ready advice in Nvember 2019, t supprt decisins n Budget agree t rescind the 26 March 2018 Cabinet decisins relating t recmmendatins 3, 4, 5 and 6 f the Cabinet Scial Wellbeing Cmmittee minute [SWC-18-MIN-0016 refers] t reflect the changes fllwing cnsultatin n the Terms f Reference 7 nte that the Welfare Expert Advisry Grup will cntribute t realising the Gvernment s visin fr the welfare system, which is t ensure peple: 7.1 have an adequate incme and standard f living 7.2 are treated with and can live in dignity 7.3 are able t participate meaningfully in their cmmunities 8 agree that the Welfare Expert Advisry Grup will deliver final advice t the Gvernment by 28 February 2019 by way f a written reprt n: 8.1 amendments t the legislative purpse and principles f the Scial Security Act that give effect t the visin and directin f the Gvernment 8.2 hw any amendments t the purpse and principles in the Scial Security Act culd be implemented system-wide 8.3 advice n ther changes needed t ensure the system achieves the Gvernment s visin fr the Welfare System 8.4 changes t bligatins and assciated sanctins t align with the visin f the Gvernment 8.5 high level recmmendatins fr imprvements t Wrking fr Families

7 8.6 recmmendatins fr areas where the interface between the welfare system and ther systems need t be imprved either because they are nt functining well r in light f the Grup s wrk n giving effect t the future visin fr the welfare system, fr instance, ACC, educatin and training, husing, health and justice 9 agree that the Welfare Expert Advisry Grup will perate until 28 February agree that decisins n any cntinuatin f the Welfare Expert Advisry Grup beynd February 2019 will be made by Cabinet in March 2019 fllwing cnsideratin f the WEAG advice 11 agree t the attached final Terms f Reference fr the Welfare Expert Advisry Grup Authrised fr ldgement Hn Carmel Sepulni Minister fr Scial Develpment