Disability in New Zealand

The Government announced, in Budget 2006, that it is investing $60 million over five years in Disability Allowance. This means people with physical, sensory, intellectual and psychiatric disabilities living in community residential services and receiving a Residential Support Subsidy can now apply to Work and Income for a Disability Allowance. The Social Security (Long Term Residential Care) Amendment Bill, introduced into Parliament on 9 May 2006 and later amended via a Supplementary Order Paper, will confirm their eligibility for Disability Allowance.

People receiving a Residential Support Subsidy can apply for a Disability Allowance on the same basis as other people living in the community. A Disability Allowance will help with residents’ ongoing disability-related costs, such as medical and dental fees, pharmaceutical and some other costs that are not covered in their service providers’ contracts with the Ministry of Health or a District Health Board.

The Residential Subsidy Unit has sent letters to clients, key stakeholders and all residential support providers, to advise them of this change

Since 1995, people living in a community residential service have generally not been seen as eligible for Disability Allowance by Work and Income based on its interpretation of the relevant sections of the Social Security Act 1964. Two successful appeals by clients with physical disabilities to the Social Security Appeal Authority in 2005 encouraged the Government to reconsider this.

In practice, the change in interpretation means people receiving health-funded residential services (Residential Support Subsidy recipients) may apply for Disability Allowance for ongoing disability-related costs that are not funded by Vote: Health through

The Disability Services Directorate encourages all its residential clients, and residential providers to assist their clients, to apply for Disability Allowance. Clients receiving a Residential Support Subsidy who have costs which are clearly not covered by residential support contracts or other Vote: Health funding may receive assistance for their disability related costs. Work and Income’s Residential Subsidy Unit, which processes all Disability Allowance applications and reviews and manages enquiries, has been given information on what is covered by the Disability Service Directorate’s various contracts for its different client groups.

The Ministry of Social Development and Ministry of Health and District Health Boards will be keeping a close eye on developments as this change in interpretation is rolled out. This is to ensure that costs are not inappropriately shifted on to Disability Allowance. The Disability Services Directorate has appointed a contact person to liaise between the Residential Subsidy Unit and the Directorate.

The eligibility of people, who receive a Residential Support Subsidy, to receive a Disability Allowance will be confirmed via the Social Security (Long Term Residential Care) Amendment Bill. This Bill was introduced into Parliament on 9 May 2006.

Details of a further amendment to this Bill is outlined in a Supplementary Order paper dated 14 June. This provided clarification regarding the backdating of payments. For example, once the legislation is enacted Residential Support Subsidy clients who qualify for Disability Allowance may be able to receive payment backdated to 18 May 2006, as long as they apply by 18 May 2007. This means people can be assured of getting their full entitlement to a Disability Allowance even if it takes them some time to apply.