12 May 2023

Patsy Hill
[FYI request #22473 email]

Tēnā koe Patsy Hill

On  16 April 2023,  you emailed the Ministry of Social Development (the
Ministry) requesting, under the Official Information Act 1982  (the Act), the
following information:
•  Can the ministry please advise as to whether there has been any
consideration to raise the flexiwage self employment weekly amount in
line with minimum wage increases (currently $600 which equates to 30
hours at the previous minimum wage of $20 per hour) and what will be
done to ensure their products are consistent with wage increases and
ensuring recipients payments are adjusted considering general rising
costs
The Flexi-Wage Self-Employment programme was expanded in 2021 alongside
the  general Flexi-Wage  programme. This expansion provided ringfenced
funding specifically for Flexi-Wage Self-Employment and introduced a standard
wage subsidy rate and duration.
The purpose of this programme is to provide for payments of special assistance
to  support  people,  who  are  at  risk  of  long-term benefit receipt or who are
disadvantaged in the labour market, to obtain or retain employment, through
providing tailored wage subsidies and associated support.
Historically, the rate of Flexi-Wage paid for self-employment was not tied to
the minimum wage. As part of the Flexi-Wage expansion, the Ministry
implemented a set rate of wage subsidy of $600 a week for 28 weeks, totalling
$16,800.
The policy intent was to ensure that clients receive a higher rate of payment
than they would have on a benefit, whilst also recognising that the person is
working for themselves and not receiving wages from an employer.

There are currently no plans to increase the rate of Flexi-Wage Self-
Employment in line with the recent minimum wage increase. However, the
Ministry continually evaluates its employment products. Increases to any
payments would be considered through the usual evaluation processes.
The principles and purposes of the Official Information Act 1982 under which
you made your request are:
•  to create greater openness and transparency about the plans, work and
activities of the Government,
•  to  increase  the  ability  of  the  public  to  participate  in  the  making  and
administration of our laws and policies and
•  to lead to greater accountability in the conduct of public affairs.
This Ministry fully supports those principles and purposes. The Ministry
therefore  intends  to  make  the  information  contained  in  this  letter  and  any
attached documents available to the wider public. The Ministry will do this by
publishing this letter on the Ministry’s website. Your personal details will be
deleted, and the Ministry will not publish any information that would identify
you as the person who requested the information.
If you wish to discuss this response with us, please feel free to contact
[MSD request email].
If  you  are  not  satisfied  with  this  response,  you  have  the  right  to  seek  an
investigation and review by the Ombudsman. Information about how to make
a complaint is available at www.ombudsman.parliament.nz or 0800 802 602.
Ngā mihi nui

Megan Beecroft
Manager
Employment Policy
Page 2 of 2

Document Outline