Plain language law

New Zealand law explained for everyone

Social Security Act 2018

Other provisions - Orders adjusting rates of benefits, etc

453: Orders in Council: mandatory annual CPI adjustment of rates of certain benefits

You could also call this:

“Yearly update: Government must increase certain benefit payments based on price changes”

Every year on 1 April, the government must change the amount of money given for certain benefits. They do this by looking at how much prices have gone up in New Zealand. This is called the CPI adjustment.

The benefits that get changed include jobseeker support, sole parent support, supported living payment, orphan’s benefit, unsupported child’s benefit, youth payment, and young parent payment. Some other benefits that aren’t used much anymore also get changed.

When the government changes these benefit amounts, they can’t make them lower than they were before. The new amounts start being paid from 1 April.

The CPI (Consumer Price Index) is a way of measuring how much prices have gone up. It’s calculated by looking at the prices of many different things that people buy.

The government makes these changes official by creating an ‘Order in Council’. This is a type of rule that starts working on 1 April, even if it hasn’t been published yet.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6784028.

Topics:
Money and consumer rights > Taxes
Work and jobs > Worker rights
Government and voting > Government departments
Previous

452A: Orders in Council: mandatory annual average weekly earnings adjustment of rates of main benefits, or

“Old rule about yearly changes to main benefit rates is no longer used”

Next

454: Certain orders are confirmable instruments, or

“This rule about checking certain orders no longer exists”

Part 8 Other provisions
Orders adjusting rates of benefits, etc

453Orders in Council: mandatory annual CPI adjustment of rates of certain benefits

  1. The rates of benefits set out in the provisions to which this subsection applies must be adjusted, by Order in Council, as at 1 April each year so that in each case the new rate is the rate at that date adjusted by any percentage movement upwards in the CPI between—

  2. the CPI for the quarter ended with 31 December 1 year before the immediately preceding 31 December; and
    1. the CPI for the quarter ended with the immediately preceding 31 December.

      1. Subsection (1) applies to the following provisions:

      2. Part 1 of Schedule 4 (rates of jobseeker support):
        1. Part 2 of Schedule 4 (rates of sole parent support):
          1. Part 3 of Schedule 4, including clause 2, but excluding clauses 3 and 4 (rates of supported living payment):
            1. Part 4 of Schedule 4 (orphan’s benefit):
              1. Part 5 of Schedule 4 (unsupported child’s benefit):
                1. Part 6 of Schedule 4, other than any rate of incentive payment in subpart 3 of Part 6 of Schedule 4 (rates and component of youth payment and young parent payment, and criteria for incentive payments):
                  1. Part 10 of Schedule 4 (rates of generally abolished former widows’ benefits under section 21 of the Social Security Act 1964 as saved by clause 55 of Schedule 1 for reciprocity agreement applicants or recipients):
                    1. Part 11 of Schedule 4 (rates of generally abolished former DPB for solo parents under section 27B of the Social Security Act 1964 as saved by clause 55 of Schedule 1 for reciprocity agreement applicants or recipients):
                      1. Part 12 of Schedule 4 (rates of benefits payable to long-term hospital patients).

                        1. An adjustment under subsection (1) also affects the maximum rate at which MSD may grant an emergency benefit (see section 63(4)).

                        2. An adjustment under subsection (1) must not reduce the weekly amounts of benefits payable under those Parts of Schedule 4.

                        3. Every Order in Council made under subsection (1)—

                        4. comes into force or is considered to come into force on 1 April of the calendar year in which it is made; and
                          1. applies to benefits payable on and after that date.

                            1. In this section, CPI means the Consumers Price Index (all groups) published by Statistics New Zealand or, if that index ceases to be published, any measure certified by the Government Statistician as being equivalent to that index.

                            2. An order under this section—

                            3. is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); but
                              1. commences in accordance with subsection (5), even if it is not yet published.

                                Compare
                                Notes
                                • Section 453 heading: amended, on , by section 5(1) of the Social Security (Benefits Adjustment) and Income Tax (Minimum Family Tax Credit) Amendment Act 2024 (2024 No 3).
                                • Section 453(2): replaced, on , by section 5(2) of the Social Security (Benefits Adjustment) and Income Tax (Minimum Family Tax Credit) Amendment Act 2024 (2024 No 3).
                                • Section 453(3): replaced, on , by section 5(2) of the Social Security (Benefits Adjustment) and Income Tax (Minimum Family Tax Credit) Amendment Act 2024 (2024 No 3).
                                • Section 453(4): amended, on , by section 9(3) of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).
                                • Section 453(6): replaced, on , by section 107(1) of the Data and Statistics Act 2022 (2022 No 39).
                                • Section 453(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).