Accommodation Supplement: The Wrong Tool to Fix the House Janet - - PowerPoint PPT Presentation

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Dec 09, 2023 272 likes •419 views

Accommodation Supplement: The Wrong Tool to Fix the House Janet McAllister Susan St John Alan Johnson May 2019 Youre constantly in a state of emergency, its not like youre never not in an emergency I really dont understand

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Accommodation Supplement: The Wrong Tool to Fix the House

Janet McAllister Susan St John Alan Johnson May 2019

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“You’re constantly in a state of emergency, it’s not like you’re never not in an emergency… I really don’t understand why the base amount of the benefit isn’t enough to live on. They really should raise the base amount so it’s enough to live on. And then all those extra bits can be there if you need them.”

Tim Danko, single parent with lived experience of receiving a benefit

Image: Sam Orchard From Welfare Fit for Families Episode 4: “Not Enough” CPAG/ We Are Beneficiaries

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“Officials consider that the existing housing subsidy structure [IRRS, AS, TAS] is not fit-for-purpose. AS does not adequately alleviate housing stress… We think that a more ambitious welfare package could include a significant review of the Accommodation Supplement, with a view to at least simplifying its structure and improving targeting of payments, or perhaps reconsidering it altogether.”

Treasury advice to Minister of Finance 2016

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Today:

What is the AS
What’s wrong with it
What does CPAG want instead (with one option detailed)
What’s different between CPAG’s proposal and WEAG’s

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Souce: Whakamana Tāngata (WEAG report) p17

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Big AS Problem: It lowers your control over how to spend your money

$0 $50 $100 $150 $200 $250 $300 $350

Rent Rent still to pay Rent covered by AS

Rent down by $125

Savings up by only $37.60

Sole Parent , 1 child, Area 1, no abatement

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BHC income Sole Parent Support 3 children, Area 1

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Receiving benefit/NZS Not receiving benefit/NZS

Supported Living 40 hours Min Wage Sole Parent Support 60 hours Min Wage JobSeeker Support 30 hours Min Wage

Example Low Income Families/ Households

Paying ~lower-quartile rent

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Net Benefits $70-$300pw (two rates) Working for Families

IWTC for families

receiving benefits

First child FTC
Second child FTC
Increased abatement

threshold ($72pw) $131pw $72pw Minimum wage To $20.50 p/hr (2018) AS

Children: > 60% AHC
Adults > 50% AHC
Min wage covers current max AS rate for a person working 35 hours

Aims: Method:

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

SPS A1 SPS A4 40hr wk A1 40hr wk A4 SPS A1 SPS A4 40hr wk A1 40hr wk A4 JSS A1 JSS A4 60hr wk A1 60hr wk A4* SLP A1 SLP A4 JSS A1 JSS A4 30wk A1 30wk A4*

Example households’ AHC income as % of equiv median, 2018 Actual CPAG model

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WEAG proposals for AS Compatible as “do now” within a plan to get rid of the AS? AS cash limit: Increase, index and liberalise Be proactive to improve the take-up rate

f AS and TAS for non-benefit recipients

Acknowledge TAS isn’t temporary and make it more flexible (eg reviews every 3- 12 months) Index Accommodation Supplement rates to movements in housing costs Increase the Government AS contribution (as % of rent) Decreasing the entry threshold for homeowners from 30% to 25% to align with renters

✓ ✓ ✓ ✓ (for now)

Index benefits, WFF and wages instead Increase benefits, WFF and wages instead

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Example families, receiving benefits, with children: income as % AHC median 2018

CPAG WEAG Actual

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