Contents

Supplementary benefits

Residential Care Subsidy and Residential Support Subsidy

Costs covered

Residential Care Subsidy helps with the costs of residential care for older people.

Residential Support Subsidy helps with the costs of contracted disability support and residential services for younger people.

These subsidies are paid by district health boards (DHBs) or the Ministry of Health directly to the providers of care. This report describes clients as ‘receiving’ a subsidy if a subsidy is paid to a care provider on their behalf.

Residential Care SubsidyTop

Eligibility

The Residential Care Subsidy provides funding for a person who:

To qualify for this funding, clients must be:

Income and asset tests

MSD’s Senior Services service line administers the income and asset tests to determine financial eligibility for a Residential Care Subsidy. An assessment of financial eligibility is separate from the DHB’s needs assessment, which determines all other aspects of eligibility for a Residential Care Subsidy.

The income and asset tests apply to everyone receiving a Residential Care Subsidy, not just to MSD clients.

On 1 July 2005, the Social Security (Long-term Residential Care) Amendment Act 2004:

Clients receiving a Residential Care Subsidy may be required to contribute to the costs of their care

Clients may be required to contribute to the costs of the care or services funded by the subsidy. All clients who meet the asset test and are eligible for the subsidy are also subject to an assessment of income. They may be required to contribute all, or part, of their income towards the cost of their care. This includes contributing part of any New Zealand Superannuation, pension or main benefit they receive, while retaining a personal allowance from those payments.

If the client agrees, Senior Services will assign the benefit contribution directly to the client’s provider.

Notes on the statistics in this section

People who are not MSD clients may receive this subsidy following an assessment by a DHB or a health provider. The information in this section should not be read as including all individuals eligible for, or taking up, this subsidy.

A finding of financial eligibility for Residential Care Subsidy indicates a successful application.

An assessment of financial eligibility follows the assessment of the medical need for care. Some clients may have been assessed for medical needs, and entered care, in the year before their financial eligibility was assessed.

Numbers of MSD clients receiving and financially eligible for a Residential Care Subsidy

The number of MSD clients receiving a Residential Care Subsidy remained relatively flat between 2010 and 2012

This pattern (see table RS.1) continued the historically slow growth rate in the number of clients receiving this subsidy. It reflected at least in part the relatively flat number of MSD clients found to be financially eligible for a Residential Care Subsidy between 2009/2010 and 2011/2012 (see table RS.2).

Three in four MSD clients receiving a subsidy were aged 80 or over

Between 2008 and 2012, 74% of MSD clients receiving a Residential Care Subsidy were aged 80 or over (see table RS.1). Another 13% were aged 75–79.

table RS.1: Ages of MSD clients receiving a Residential Care Subsidy

Age of client at the end of June MSD clients receiving a Residential Care Subsidy1
2008 2009 2010 2011 2012
Under 60 years 59 50 52 45 50
60–64 years 160 149 153 150 154
65–69 years 618 629 626 670 633
70–74 years 1,350 1,400 1,401 1,383 1,485
75–79 years 2,529 2,490 2,582 2,526 2,541
80–84 years 4,129 4,187 4,155 4,265 4,254
85–89 years 4,708 4,906 5,087 5,121 5,177
90 years or over 4,776 4,656 4,999 5,050 5,299
Total 18,329 18,467 19,055 19,210 19,593

Note

  1. The number of clients recorded in SWIFTT as having their main benefit or pension (less a personal allowance) paid to a health provider at the end of June under the Residential Care Subsidy scheme.

Over two in three of the clients found to be financially eligible for a Residential Care Subsidy were aged 80 or over

Between 2009/2010 and 2011/2012, 71% of the clients found to be financially eligible for a Residential Care Subsidy were aged 80 or over (see table RS.2). Another 15% of these clients were aged 75–79.

table RS.2: Ages of MSD clients found to be financially eligible for a Residential Care Subsidy

Age of client when found to be eligible Number of successful applications for a Residential Care Subsidy1    
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Under 60 years 46 40 62 61 56
60–64 years 96 89 118 129 149
65–69 years 363 449 624 653 622
70–74 years 614 707 1,054 1,037 1,135
75–79 years 1,108 1,341 2,033 1,823 1,936
80–84 years 1,746 2,131 3,225 3,324 3,130
85–89 years 1,803 2,212 3,614 3,555 3,691
90 years or over 1,284 1,573 2,526 2,499 2,862
Total 7,060 8,542 13,256 13,081 13,581

Note

  1. The number of successful applications for a Residential Care Subsidy recorded in SWIFTT during years ended June. A successful application indicated the client was found to be financially eligible for a Residential Care Subsidy.

Relatively small numbers of those aged 65 or over were MSD clients receiving a subsidy

In 2012, an estimated 3.2% of those aged 65 or over were MSD clients receiving a Residential Care Subsidy, down slightly from 3.4% in 2008.

Those aged 80 or over were more likely than those in younger age groups to be a MSD client receiving a subsidy

Between 2008 and 2012, an estimated 10% of those aged 85–89, and between 21% and 24% of those aged 90 or over, were MSD clients receiving a Residential Care Subsidy. Over the same period, an estimated 0.4% of 65–69 year olds, and 1.0% of 70–74 year olds, were in the same position.

This pattern reflected:

Residential Support SubsidyTop

Eligibility

The Residential Support Subsidy provides funding for people with physical, intellectual or psychiatric disabilities (including those undertaking drug and alcohol rehabilitation).

No income and asset tests apply.

Clients receiving a Residential Support Subsidy may be required to contribute to the costs of their care

Clients may be required to contribute to the costs of the care or services funded by the subsidy. These clients contribute a portion of any income they receive (less some exemptions). They contribute any New Zealand Superannuation, pension or main benefit they receive, while retaining a personal allowance from those payments.

If the client agrees, Senior Services will assign the benefit contribution directly to the client’s provider.

The statistics in this section are restricted to MSD clients

People who are not MSD clients may receive this subsidy following an assessment by a DHB or a health provider. The information in this section should not be read as including all individuals eligible for, or taking up, this subsidy.

A successful application for a Residential Support Subsidy is recorded when a client takes up the subsidy

There is usually little delay between when clients are recorded as taking up a Residential Support Subsidy and when clients begin to receive the services being funded.

Numbers of MSD clients receiving a Residential Support Subsidy

The number of MSD clients receiving a Residential Support Subsidy remained relatively flat between 2011 and 2012

This pattern (see table RS.3) followed four years which reflected the historic pattern of slow growth in the number of clients receiving this subsidy.

table RS.3: Numbers of MSD clients receiving a Residential Support Subsidy

  MSD clients receiving a Residential Support Subsidy1
2008 2009 2010 2011 2012
Total clients receiving a subsidy 8,618 8,813 9,080 9,240 9,271

Note

  1. The number of clients recorded in SWIFTT as having their main benefit or pension (less a personal allowance) paid to a health provider at the end of June under the Residential Support Subsidy scheme.

The numbers taking up a Residential Support Subsidy increased

The number of clients taking up this subsidy increased between 2009/2010 and 2011/2012, following a decrease between 2007/2008 and 2009/2010 (see table RS.4). This pattern reflected a combination of:

table RS.4: Numbers of MSD clients taking up a Residential Support Subsidy

  Number of clients taking up a Residential Support Subsidy1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Total clients taking up a subsidy 5,552 4,902 4,825 4,958 5,011

Note

  1. The number of clients recorded in SWIFTT as taking up a Residential Support Subsidy during years ended June.

A very small number of working-age people were receiving a subsidy

Between 2008 and 2012, around 0.3% of working-age people were receiving a subsidy, with those aged 40 or over slightly more likely than those aged under 40 to do so.

More information about clients receiving a Residential Support Subsidy

Nearly all MSD clients receiving a Residential Support Subsidy were receiving an Invalid’s Benefit

Between 2008 and 2012, 86% of MSD clients receiving a Residential Support Subsidy were receiving an Invalid’s Benefit (see table RS.5).

Most of the remaining clients were receiving New Zealand Superannuation or a Sickness Benefit.

table RS.5: Financial assistance paid to MSD clients receiving a Residential Support Subsidy

Financial assistance paid at the end of June MSD clients receiving a Residential Support Subsidy1
2008 2009 2010 2011 2012
Unemployment Benefits 0 0 0 0 1
Domestic Purposes Benefits 11 13 16 18 16
Sickness Benefits 408 478 469 522 524
Invalid’s Benefit 7,526 7,619 7,847 7,894 7,888
Other main benefits2 53 54 47 42 43
New Zealand Superannuation and Veteran’s Pension 620 646 699 761 798
None of the above assistance3 0 3 2 3 1
Total 8,618 8,813 9,080 9,240 9,271

Notes

  1. The number of clients recorded in SWIFTT as having their main benefit or pension (less a personal allowance) paid to a health provider at the end of June under the Residential Support Subsidy scheme.
  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, an Unsupported Child’s Benefit or an Orphan’s Benefit.

Over one in two of the clients receiving a Residential Support Subsidy were aged 40–64

Between 2008 and 2012, 56% of the clients receiving a Residential Support Subsidy were aged 40–64. Twenty-three percent of clients receiving a subsidy in 2012 were aged 25–39, compared with 27% in 2008.

Between 2008/2009 and 2011/2012, clients taking up a subsidy became more likely to be receiving a Sickness Benefit

Forty-nine percent of clients taking up a Residential Support Subsidy in 2011/2012 were receiving a Sickness Benefit (see table RS.6). This compared with 42% in 2008/2009.

The proportion of clients taking up a subsidy who were receiving an Invalid’s Benefit decreased from 50% to 43% over the same period (see table RS.6).

table RS.6: Financial assistance paid to MSD clients taking up a Residential Support Subsidy

Financial assistance paid when Residential Support Subsidy is taken up Number of clients taking up a Residential Support Subsidy1
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Unemployment Benefits 3 0 2 1 1
Domestic Purposes Benefits 96 107 117 121 134
Sickness Benefits 1,766 2,069 2,127 2,398 2,453
Invalid’s Benefit 3,443 2,464 2,299 2,162 2,167
Other main benefits2 40 50 30 30 32
New Zealand Superannuation or
Veteran’s Pension
203 206 243 241 222
None of the above assistance3 1 6 7 5 2
Total 5,552 4,902 4,825 4,958 5,011

Notes

  1. The number of clients recorded in SWIFTT as taking up a Residential Support Subsidy during years ended 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, an Unsupported Child’s Benefit or an Orphan’s Benefit.
3This was changed in Budget 2012 to increase each year in line with the CPI.