Contents

Supplementary benefits

Childcare assistance

Childcare assistance available from Work and Income comprises:

Childcare Subsidy

Costs covered

The Childcare Subsidy programme helps with the costs of childcare faced by:

People can receive a Childcare Subsidy for up to 50 hours a week if:

Other people can receive a Childcare Subsidy for up to nine hours a week.

The Childcare Subsidy:

– licensed childcare
– family day care
– home-based care
– care in chartered te kĊhanga reo.

A Childcare Subsidy cannot be paid for the hours covered by the free early childhood education hours introduced from July 2007. From 1 July 2007, all children aged 3–5 were entitled to 20 hours’ free early childhood education a week (a maximum of 6 hours a day).

A Childcare Subsidy can, however, be used:

The combined total of hours covered by the free early childhood education hours and the Childcare Subsidy must not exceed the client’s maximum entitlement to subsidised hours.

Eligibility

A Childcare Subsidy is available for children aged:

The Childcare Subsidy is income tested. The income limits below which families could be eligible for a Childcare Subsidy were raised in October 2004 and in October 2005 under the Working for Families package. These income limits were raised again in September 2010, with the introduction of the Future Focus package.

Note – these statistics show the number of children for whom a Childcare Subsidy was paid

These statistics may differ from other published information giving the number of clients receiving or granted a Childcare Subsidy for one or more children.

Numbers of children for whom a Childcare Subsidy was paid

The number of children for whom a Childcare Subsidy was paid decreased between 2010 and 2012

This decrease (see table CC.1) largely reflected the ongoing slow economic recovery and its impact on work opportunities and on the incomes of working families.

table CC.1: Numbers of children assisted by a Childcare Subsidy

  Children assisted by a Childcare Subsidy1
2008 2009 2010 2011 2012
Total children assisted 34,880 37,920 40,686 38,648 37,237

Note

  1. The number of children recorded in SWIFTT as being assisted by a Childcare Subsidy at the end of June. The timing of this extraction may have been altered in some years shown, to avoid school holiday periods.

This decrease largely reflected reduced grants of Childcare Subsidy

Grants of Childcare Subsidy reduced between 2009/2010 and 2011/2012 (see table CC.2). This reflected a combination of reduced numbers of children in the under 5 age group and the slow easing of economic conditions which reduced new demand for financial assistance with costs of childcare.

table CC.2: Numbers of children granted a Childcare Subsidy

  Children granted a Childcare Subsidy1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Total subsidies granted 54,037 51,323 52,519 50,505 49,399

Note

  1. The number of successful applications for a Childcare Subsidy recorded in SWIFTT during years ended June.

Around one in eight children under 5 years were assisted by a Childcare Subsidy

In 2012, an estimated 11.9% of children aged under 5 were assisted by a Childcare Subsidy, down from 13.0% in 2010. Between 2008 and 2010, this proportion increased from 11.6% to 13.0%.

More information about children assisted by a Childcare Subsidy

Two in three of the children for whom a Childcare Subsidy was paid were cared for by working families

Between 2008 and 2012, around 69% of the children for whom the Childcare Subsidy was paid had caregivers in working families (see table CC.3). Another 28% of these children had caregivers who were receiving a Domestic Purposes Benefit.

table CC.3: Financial assistance paid to caregivers of children assisted by a Childcare Subsidy

Financial assistance paid to caregiver at the end of June Children assisted by a Childcare Subsidy1
2008 2009 2010 2011 2012
Unemployment Benefits 129 413 497 396 348
Domestic Purposes Benefits 9,377 10,691 11,306 10,812 10,567
Sickness Benefits 300 404 407 369 320
Invalid’s Benefit 518 502 498 446 442
Other main benefits2 180 187 158 148 145
New Zealand Superannuation or
Veteran’s Pension
30 40 37 33 30
None of the above assistance3 24,346 25,683 27,783 26,444 25,385
Total 34,880 37,920 40,686 38,648 37,237

Notes

  1. The number of children recorded in SWIFTT as being assisted by a Childcare Subsidy at the end of June. The timing of this extraction may have been altered in some years shown, to avoid school holiday periods.
  2. Comprises Unemployment Benefit – Training, Unemployment Benefit – Hardship – Training, Unemployment Benefit – Student Hardship, Independent Youth Benefit, Widow’s Benefit and Emergency Benefit.
  3. Includes clients receiving other supplementary benefits, and those clients entitled to a Childcare Subsidy through receiving an Unsupported Child’s Benefit or an Orphan’s Benefit.

Nearly three in four of the children for whom a subsidy was granted had caregivers in employment, education or training

Between 2009/2010 and 2011/2012, 39% of children for whom subsidies were granted had caregivers in employment (see table CC.4). Another 34% of these children had caregivers in education or training.

table CC.4: Reasons for granting a Childcare Subsidy

Reason Childcare Subsidy granted Children for whom a Childcare Subsidy was granted1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Disabled parent 930 852 870 849 761
Parent in employment 23,416 21,161 20,575 19,720 19,045
Child receiving Child Disability Allowance 2,232 2,228 2,085 1,722 1,551
Sibling receiving Child Disability Allowance 1,592 1,777 1,498 1,524 1,596
Sibling in hospital 18 8 12 14 12
Illness or injury 194 179 176 137 130
Parent in training or education 18,083 16,890 18,175 17,654 16,955
Insufficient income 7,572 8,228 9,128 8,885 9,349
Total 54,037 51,323 52,519 50,505 49,399

Note

  1. The number of successful applications for a Childcare Subsidy recorded in SWIFTT during years ended June.

Three in five of the children for whom a Childcare Subsidy was granted were cared for by working families

Between 2009/2010 and 2011/2012, 61% of the children for whom a Childcare Subsidy was granted were in working families. Around 34% had caregivers receiving a Domestic Purposes Benefit.

OSCAR (Out of School Care and Recreation) SubsidyTop

Costs covered

An OSCAR Subsidy pays for out-of-school care for children aged 5–13. The subsidy was introduced to help with the costs of approved out-of-school care and holiday programmes faced by:

The subsidy is paid directly to the provider of the childcare.

Children aged 14 or over may be legally left at home without full-time care and supervision.

Eligibility

In some circumstances, people can receive an OSCAR Subsidy for:

To receive this level of subsidy:

The subsidy was introduced in February 1999.

Income, asset and residency tests apply.

Note – statistics show the number of children for whom an OSCAR Subsidy was paid

This information may differ from other published information showing the number of clients receiving or granted an OSCAR Subsidy for one or more children.

Numbers of children for whom an OSCAR Subsidy was paid

The number of children for whom an OSCAR Subsidy was paid increased between 2011 and 2012

This increase (see table CC.5) reflected a combination of:

table CC.5: Numbers of children assisted by an OSCAR Subsidy

  Children assisted by an OSCAR Subsidy1
2008 2009 2010 2011 2012
Total children assisted 9,466 10,992 11,890 11,804 13,015

Note

  1. The number of children recorded in SWIFTT as being assisted by an OSCAR Subsidy at the end of June.

The number of grants of OSCAR Subsidy increased between 2010/2011 and 2011/2012

This increase (see table CC.6) was driven by increased use of the subsidy by working families. This may reflect in part the increase over this period in the population of children aged 5–13, and the gradual nature of the economic recovery. The gradual recovery may mean more of the people entering work still met the income criteria for the subsidy.

table CC.6: Numbers of children granted an OSCAR Subsidy

  Children granted an OSCAR Subsidy1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Total subsidies granted 36,563 42,103 41,179 31,700 34,579

Note

  1. The number of children recorded in SWIFTT as being granted an OSCAR Subsidy during years ended June.

A relatively small number of children aged 5–13 were assisted by an OSCAR Subsidy

In 2012, an estimated 2.5% of children aged 5–13 were covered by an OSCAR Subsidy, up from 1.8% in 2008. Over this period, children aged 5–9 were more likely than 10–13 year olds to be assisted by an OSCAR Subsidy.

More information about children assisted by an OSCAR Subsidy

Four in five of the children for whom the subsidy was paid were in working families

Between 2008 and 2012, 83% of the children for whom an OSCAR Subsidy was paid had caregivers in working families (see table CC.7). Another 15% had caregivers receiving a Domestic Purposes Benefit.

table CC.7: Financial assistance paid to caregivers of children assisted by an OSCAR Subsidy

Financial assistance paid to caregiver at the end of June Children assisted by an OSCAR Subsidy1
2008 2009 2010 2011 2012
Unemployment Benefits 10 16 11 14 15
Domestic Purposes Benefits 1,531 1,827 1,780 1,714 1,983
Sickness Benefits 18 25 12 29 31
Invalid’s Benefit 59 88 102 99 82
Other main benefits2 26 32 23 29 37
New Zealand Superannuation
or Veteran’s Pension
5 10 10 12 21
None of the above assistance3 7,817 8,994 9,952 9,907 10,846
Total children assisted 9,466 10,992 11,890 11,804 13,015

Notes

  1. The number of children recorded in SWIFTT as being assisted by an OSCAR Subsidy at the end of June.
  2. Comprises Unemployment Benefit – Training, Unemployment Benefit – Hardship – Training, Unemployment Benefit – Student Hardship, Independent Youth Benefit, Widow’s Benefit and Emergency Benefit.
  3. Includes clients receiving other supplementary benefits, or entitled to an OSCAR Subsidy through receiving an Unsupported Child’s Benefit or an Orphan’s Benefit.

Four in five of the children for whom an OSCAR Subsidy was granted had caregivers in employment…

Eighty-one percent of the children for whom an OSCAR Subsidy was granted between 2009/2010 and 2011/2012 had caregivers in employment (see table CC.8).

table CC.8: Reasons for granting an OSCAR Subsidy

Reason OSCAR Subsidy granted Children for whom an OSCAR Subsidy was granted1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Caregiver in employment 31,208 35,342 33,788 25,627 27,852
Caregiver in training or education 5,355 6,761 7,391 6,073 6,727
Total children 36,563 42,103 41,179 31,700 34,579

Note

  1. The number of successful applications for an OSCAR Subsidy recorded in SWIFTT during years ended June.

…and a similar proportion were cared for by working families

Between 2009/2010 and 2011/2012, 79% of the children for whom an OSCAR Subsidy was granted were in working families.