Contents

Main benefits

Other unemployment-associated benefits

Definition of other unemployment-associated benefits

This group of main benefits comprises:

Recent operational and administrative changesTop

Since September 2010, clients receiving an Unemployment Benefit – Training, an Unemployment Benefit – Hardship – Training, or an Unemployment Benefit – Student Hardship have been required to reapply for their benefit every 12 months. This process:

Since January 2011, training courses have had time limits imposed, and the use of successive courses or long courses has been restricted to clients who are significantly disadvantaged in the labour market. These changes reflected the focus of Work and Income on moving clients into work wherever possible. The changes have had an impact on the use of training-related benefits (Unemployment Benefit – Training and Unemployment Benefit – Hardship – Training) through:

Eligibility by specific benefitTop

Unemployment Benefit – Training

Who is it available to?

An Unemployment Benefit – Training is available to full-time trainees on approved training courses.

To receive one, clients must be available for, and be willing to undertake, suitable full-time work, and be:

Recipients of an Unemployment Benefit – Training must remain available for work, and take reasonable steps to complete the job search requirements of an Unemployment Benefit.

Income and residency tests apply.

Unemployment Benefit – Hardship – Training

Who is it available to?

An Unemployment Benefit – Hardship – Training may be available to clients who meet all the criteria for an Unemployment Benefit – Training apart from the residency test.

Income and asset tests apply.

Unemployment Benefit – Student Hardship

Who is it available to?

Full-time tertiary students who are unable to secure employment over the summer vacation may be eligible for an Unemployment Benefit – Student Hardship.

To be eligible, students must:

Income, asset and residency tests apply.

Independent Youth Benefit

Who was it available to?

Until August 2012, an Independent Youth Benefit was available to 16–17 year olds who, for some serious reason:

In addition, these young people must have been:

Recipients of an Independent Youth Benefit who were in full-time education when they turned 18 years old could continue to receive that benefit until the end of the academic year.

Income and residency tests applied.

This benefit was replaced by Youth Payment and Young Parent Payment from August 2012.

Numbers of clients receiving other unemployment-associated benefitsTop

The number receiving other unemployment-associated benefits remained relatively flat between 2011 and 2012

This pattern (see table OU.1) followed a decrease between 2009 and 2011. It reflected an increased focus by Work and Income on moving people into paid work.

The majority of non-working-age recipients of these benefits were 16–17 year olds receiving an Independent Youth Benefit.

table OU.1: Numbers receiving an other unemployment-associated benefit

Client age at 30 June Clients receiving an other unemployment-associated benefit1
2008 2009 2010 2011 2012
Working-age clients receiving benefits 6,575 7,606 6,845 6,836 6,780
Other clients receiving benefits 1,204 1,723 1,667 1,131 964
Total clients receiving benefits 7,779 9,329 8,512 7,967 7,744

Note

  1. The number of clients recorded in SWIFTT as receiving an other unemployment-associated benefit at the end of June.

Grants and cancellations of other unemployment-associated benefits both increased

Between 2007/2008 and 2011/2012, there were increases in both grants of other unemployment-associated benefits (see table OU.2) and cancellations of those benefits (see table OU.3).

Most of the non-working-age clients granted these benefits were 16–17 year olds granted Independent Youth Benefits. Similarly, most of the other unemployment-associated benefits cancelled by non-working-age clients were Independent Youth Benefits cancelled when the recipient turned 18 years.

table OU.2: Numbers granted an other unemployment-associated benefit

Client age when benefit granted Grants of other unemployment-associated benefits1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Benefits granted to working-age clients 20,741 24,560 30,395 39,518 48,502
Benefits granted to other clients 2,779 3,448 3,524 2,434 2,000
Total benefits granted 23,520 28,008 33,919 41,952 50,502

Note

  1. The number of successful applications for other unemployment-associated benefits recorded in SWIFTT during years ended June.

table OU.3: Numbers cancelling an other unemployment-associated benefit

Client age when benefit cancelled Cancellations of other unemployment-associated benefits1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Benefits cancelled by working-age clients 21,480 24,874 32,554 40,456 49,160
Benefits cancelled by other clients 1,839 1,748 2,017 1,637 1,286
Total benefits cancelled 23,319 26,622 34,571 42,093 50,446

Note

  1. The number of cancellations of other unemployment-associated benefits recorded in SWIFTT during years ended June.

A very small number of working-age people were receiving these benefits

Between 2008 and 2012, less than 0.3% of working-age people were receiving other unemployment-associated benefits. In 2012, an estimated 0.8% of 16–17 year olds were receiving an Independent Youth Benefit, down from 1.3% in 2009 and 2010.

See table OT.3 for trends since 1991 in the number of clients receiving an Independent Youth Benefit.

More information about recipients of other unemployment-associated benefits

Use of Unemployment Benefits – Hardship Student was highly seasonal

The use of this benefit was concentrated in the summer holiday from education or training (between November and February). Between 2009/2010 and 2011/2012, this benefit dominated both grants and cancellations of other unemployment-associated benefits. However, very small numbers of clients were receiving an Unemployment Benefit – Student Hardship at the end of June.

Almost all working-age recipients of these benefits were receiving training-related benefits

Between 2008 and 2012, almost all working-age clients receiving an unemployment-associated benefit at the end of June were receiving a training-related benefit (Unemployment Benefit – Training or Unemployment Benefit – Hardship – Training) (see table OU.4). The remainder were:

table OU.4: Types of other unemployment-associated benefits received

Type of benefit received at end of June 2008 2009 2010 2011 2012
Working-age clients receiving other unemployment-associated benefits1
Unemployment Benefit – Training and Unemployment Benefit – Hardship – Training 6,432 7,356 6,455 6,101 6,265
Unemployment Benefit – Student Hardship 91 198 319 662 461
Independent Youth Benefit 52 52 71 73 54
Total received by working-age clients 6,575 7,606 6,845 6,836 6,780
  Other clients receiving other unemployment-associated benefits1
Total received by other clients 1,204 1,723 1,667 1,131 964
  All clients receiving other unemployment-associated benefits1
Total received by all clients 7,779 9,329 8,512 7,967 7,744

Note

  1. The number of clients recorded in SWIFTT as receiving other unemployment-associated benefits at the end of June.

Training-related benefits and Unemployment Benefits – Student Hardship drove increased grants and cancellations of these benefits

This pattern (see table OU.5 and table OU.6) reflected a combination of:

Unemployment Benefits – Student Hardship formed a majority of other unemployment-associated benefits granted

Between 2009/2010 and 2011/2012, Unemployment Benefits – Student Hardship accounted for between 56% and 63% of other unemployment-associated benefits granted (see table OU.5). These benefits provide short-term assistance to students seeking employment during breaks from training or study.

table OU.5: Types of other unemployment-associated benefits granted

Type of benefit granted 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Other unemployment-associated benefits granted to working-age clients1
Unemployment Benefit – Training and Unemployment Benefit – Hardship – Training 11,876 13,360 12,215 14,722 21,254
Unemployment Benefit – Student Hardship 8,865 11,200 18,180 24,796 27,248
Benefits granted to working-age clients 20,741 24,560 30,395 39,518 48,502
  Other unemployment-associated benefits granted to other clients1
Benefits granted to other clients 2,779 3,448 3,524 2,434 2,000
  Other unemployment-associated benefits granted to all clients1
Total benefits granted 23,520 28,008 33,919 41,952 50,502

Note

  1. The number of successful applications for other unemployment-associated benefits recorded in SWIFTT during years ended June.

Unemployment Benefits – Student Hardship formed a majority of other unemployment-associated benefits cancelled

Between 2009/2010 and 2011/2012, Unemployment Benefits – Student Hardship accounted for between 56% and 60% of other unemployment-associated benefits cancelled (see table OU.6). This reflected:

table OU.6: Types of other unemployment-associated benefits cancelled

Type of benefit cancelled 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Other unemployment-associated benefits cancelled by working-age clients1
Unemployment Benefit – Training and Unemployment Benefit – Hardship – Training 11,639 12,556 13,029 14,819 20,741
Unemployment Benefit – Student Hardship 8,874 11,204 17,987 24,271 27,446
Independent Youth Benefit 967 1,114 1,538 1,366 973
Benefits cancelled by working-age clients 21,480 24,874 32,554 40,456 49,160
  Other unemployment-associated benefits cancelled by other clients1
Benefits cancelled by other clients 1,839 1,748 2,017 1,637 1,286
  Other unemployment-associated benefits cancelled by all clients1
Total benefits cancelled 23,319 26,622 34,571 42,093 50,446

Note

  1. The number of cancellations of other unemployment-associated benefits recorded in SWIFTT during years ended June.