MEMO
DATE
November 2022
TO
Carolyn Tremain, Chief Executive
Ministry for Business, Innovation and Employment
FROM
Alison McDonald, Deputy Secretary Immigration
PREPARED BY
Meegan Sorenson, Principal Advisor – Verification & Compliance branch, INZ
SUBJECT
INCREASING FINANCIAL SUPPORT FOR A SMALL GROUP OF REFUGEE OR
PROTECTED PERSON CLAIMANTS
PURPOSE
This memo seeks approval to increase the living allowance paid to a small group of refugee or
protected person claimants (claimants) who have not been issued with visas, and as such are
unable to work or claim any benefit from Work and Income.
RECOMMENDATIONS
It is recommended that you:
a)
Note that the allowances paid to claimants was last reviewed in April 2020.
Noted
b)
Note that the April 2020 review resulted in an increase in allowance for claimants in the
community from $120 to $225 per week, but no increase was proposed to the allowance
for those housed at Te Āhuru Mōwai o Aotearoa who currently receive $85 per week.
Noted
c)
Note the approach used to calculating allowances is based on an amount mid‐way
between the net Jobseeker Support benefit for a single person aged 25 or above and the
net Jobseeker Support benefit for a person in a partnership without children.
Noted
d)
Note that an increase to the allowance does not require Cabinet approval.
Noted
1
e)
Note the proposed increase in allowances is consistent with adjustments to benefit rate
increases as part of the Government’s commitment to lifting incomes and implementing
key recommendations of the Welfare Expert Advisory Group (WEAG) and responding to
the impacts of COVID‐19 and increased cost of living.
Noted
f)
Note that to date INZ has not routinely reviewed the allowance, but effective from this
year, will review the allowances annually.
Noted
g)
Agree to increase the allowance for claimants in the community who do not hold visas
enabling them to work and support themselves from $225 per week to $291.50 per week,
based on 1 April 2022 benefit rates.
Agree / Discuss
h)
Agree to increase the allowance for claimants residing at the Te Āhuru Mōwai o Aotearoa
from $85 per week to $185.00 per week based on 1 April 2022 benefit rates, less
accommodation costs.
Agree / Discuss
i)
Note INZ has sought advice on the necessary level of authority to incur the allowance
expense (including increasing the allowance), to determine whether it is appropriate for
the decision to sit elsewhere, for example with the Deputy Secretary Immigration, rather
than the Chief Executive, and confirmed that the delegation sits with the Chief Executive of
MBIE.
Noted
j)
Agree that INZ further investigate the level of authority to incur the allowance expense
(including increasing the allowance), with a view to having the Deputy Secretary
Immigration making the decision as an option for future reviews.
Agree / Discuss
__________________________________
_____________________________________
Alison McDonald
Carolyn Tremain
Deputy Secretary – Immigration
Secretary for Business, Innovation and
Employment and Chief Executive
...... November 2022
...... November 2022
2
BACKGROUND
1.
There is currently a small number of claimants1 in New Zealand who have been refused
entry permission and a visa2. Because of their refused entry and unlawful immigration
status, they are unable to work or claim assistance from the Ministry of Social
Development to support themselves in New Zealand while their claim is being
progressed. Due to their status as claimants, they are also unable to be deported from
New Zealand.
2.
Consistent with New Zealand’s obligations under the International Covenant on
Economic, Social and Cultural Rights (Article 11 which provides that States will take
appropriate steps to ensure the realisation of the right to an adequate standard of
living), Immigration New Zealand (INZ) pays a living allowance to these claimants where
they are in the community and have not been granted visas which would enable them to
work to support themselves. Such individuals may be housed at the Asylum Seekers
Support Trust, at Te Āhuru Mōwai o Aotearoa, or with family or friends.
3.
The allowance is payable to those who have:
been refused entry permission and a visa at the border and subject to s315
turnaround provisions of the Immigration Act 20093; and
lodged a claim with the Refugee Status Unit to be recognised as refugees and
protected persons under Part 5 of the Immigration Act 2009 (the Act)
been assessed as eligible for the allowance.
4.
Those who have claimed refugee or protected person status more than once in New
Zealand and have already had decisions made on their claims are not eligible for the
allowance. Those who are detained in a Corrections facility are also not eligible for the
allowance, whether a first‐time border claimant or second time claimant.
Regular review of allowances
5.
There is currently no set review period for the allowance. The allowance was last
reviewed in April 2020 and prior to that, in 2015. The April 2020 review resulted from
several submissions from members of the public, including from the Asylum Seekers
Support Trust (ASST), regarding the need for an increase to the weekly allowance
payments. Effective from this year, INZ intend to review the allowance on an annual
basis.
6.
While work was already underway to propose an increase in the allowance, the situation
in April 2020 required more urgent action, as all claimants who had been detained in
1 A person who is in New Zealand who has made a claim for recognition as a refugee under the Refugee Convention
or a protected person under the Convention Against Torture or a protected person under the Covenant on Civil and
Political Rights.
2 A person who comes to New Zealand and is denied entry, may be detained until they can be removed (s115
refers). If a claim is then made, that person may continue to be detained but is not removed. INZ determines
whether it is proportionate to restrict the freedom of movement of such individuals in terms of the 2012 UN
Guidelines on Detention and may decide to continue to detain them or allow them to remain in the community on a
Residence and Reporting Requirements Agreement (RRRA), or to be granted a visa.
3 Restrictions on freedom of movement do not necessarily impact an individual’s eligibility for the allowance, except
for those identified as ineligible in paragraph 4.
3
Corrections facilities had been released into the community in response to the COVID‐19
lock‐down.
7.
The outcome of the April 2020 review was an increase in allowance for claimants in the
community who do not hold visas enabling them to work and support themselves from
$120 to $225 per week. No increase was proposed to the $85 allowance for those
housed at Te Āhuru Mōwai o Aotearoa as it was considered at the time that the housing
requirements for claimants released there were fully met.
PAYMENT OF ALLOWANCES IS DISCRETIONARY AND SUBJECT TO REVIEW
8.
Generally, allowances can be paid to first time claimants who are subject to s315
turnaround provisions of the Immigration Act 2009 (see description at paragraph 3). The
payment of these allowances by INZ is discretionary4. In most cases, it will be the
individual’s representative or the Asylum Seekers Support Trust who requests the
payment on behalf of the claimant.
9.
The payment of allowances to each individual is reviewed every six months to confirm
whether the claimant is still meeting relevant criteria. As soon as a claim is either
approved or declined, the claimant, their representative, and the Ministry of Business,
Innovation and Employment (MBIE) Finance team are notified. Where the claim is
declined the payment is ceased.
OFFICE OF THE OMBUDSMAN REVIEW – OPCAT REPORT
10.
In June 2020, the Office of the Ombudsman conducted a two‐day inspection of Te Āhuru
Mōwai o Aotearoa under the Crimes of Torture Act 1989 to assess the treatment and
living conditions of the claimants detained there. A further inspection took place on
Thursday, 28 July 2022.
11.
The report from the June 2020 inspection, which was published in April 2021 noted that
Te Āhuru Mōwai o Aotearoa was well run, with several positive practices to be
commended. The report made several recommendations including that the amount of
the weekly allowance provided to residents should be reviewed to ensure it is fair and
reasonable in relation to residents’ food and other essential living costs.
12.
INZ accepted the recommendation relating to a review of the weekly allowance
however, there has been a delay in completing the review and seeking decisions on
changes to allowances (this memo).
13.
There have been no claimants residing at Te Āhuru Mōwai o Aotearoa due to their
freedom of movement being restricted, since August 2021.
VICTORIA CASEY REVIEW INTO THE RESTRICTION OF MOVEMENT OF CLAIMANTS
14.
On 23 March 2022, Victoria Casey QC concluded her independent review of INZ’s
processes and procedures relating to restriction of liberty of claimants for refugee and
4 There is a small additional group of people who may be housed at Te Āhuru Mōwai o Aotearoa, including multiple
time claimants, who may be paid the allowance. Consideration of such payments are made on a discretionary and
case by case basis.
4
protection status. The review included consideration of the appropriate use of
Corrections and Police facilities in New Zealand for Immigration detention.
15.
While the Victoria Casey review does not have any immediate impact on the matter of
allowances discussed in this paper, final outcomes from the Victoria Casey review may
impact matters of allowances in the future.
16.
The Victoria Casey review also acknowledged the findings of the Ombudsman’s April
2021 OPCAT Report and supported the review of the adequacy of the allowance for
claimants residing at Te Āhuru Mōwai o Aotearoa.
2022 REVIEW OF ALLOWANCES
17.
INZ recommends that based on benefit rates as at 1 April 2022:
the current allowance of $225 for claimants residing in the community is increased
to $291.50 (a 29.5 per cent increase); and
the current allowance of $85 for claimant’s resident at Te Āhuru Mōwai o Aotearoa
is increased to $185.00 (a 1185 per cent increase).
Allowance calculation approach
18.
The approach taken to calculating the allowance uses the most recent Ministry of Social
Development (MSD) Jobseeker Support benefit rates and takes the midpoint between
the net Job Seeker’s Support benefit for a single person 25+ years ($315.00 as at 1 April
2022) and a person in a relationship without children ($268 as at 1 April 2022)). For
claimants residing at Te Āhuru Mōwai o Aotearoa, the calculated figure is reduced to
factor in that there are no accommodation costs for this group of people.
19.
The approach to calculating the accommodation supplement deduction for residents at
Te Āhuru Mōwai o Aotearoa is the midpoint between the Jobseeker Rent or Board
Accommodation Supplement for a single person 25 years or over ($79.00 as at 1 April
2022) and a person6 in a relationship without children ($134 as at 1 April 2022). Using
this approach, the accommodation supplement calculation equates to $106.50.
20.
In determining the level of increase, INZ has considered the need to keep the amount
less than that provided to single jobseekers aged 25 and above, to ensure that the
increase does not in itself incentivise unlawful entry to New Zealand.
21.
MSD Jobseeker Support benefit rates provide for a separate accommodation
supplement to be paid in certain circumstances. INZ’s approach to calculating
allowances does not factor in this supplement.
Further rationale for proposed increase in allowance
22.
Claimants at Te Āhuru Mōwai o Aotearoa are provided with accommodation and some
basic items such as hygiene and welcome packs. Claimants meet their basic living costs,
including food, clothing, personal hygiene items and some medical needs through their
living allowance.
5 Note the large increase is due to this allowance not being increased since before 2020
6 Based on the MSD Accommodation Supplement for couples without children
5
$10,3749, or an increase from approximately $50,000 to $60,000 for the year (if the
allowances were to continue for the full financial year for the current claimants).
Affordability
30.
INZ currently has several cost and funding pressures however, this expenditure
represents only a very small portion of the total Immigration budget. While the
increased cost will need to be absorbed from within INZ’s existing baseline, it is not
likely to have a material impact on INZ activity.
31.
The allowances are paid from Crown funding, rather than through Fees and Levies.
Costs in out‐years
32.
It is difficult to determine the likely cost to INZ of allowance payments in out‐years as
the number of claimants in New Zealand at any given time will be influenced by events
outside the control of New Zealand. However, with the border fully reopening from 31
July 2022, there is a chance that claimant numbers may increase.
s 9(2)(h)
POTENTIAL RISKS
36.
There are potential media and political risks associated with a decision to increase the
allowance, primarily the potential negative perception that claimants are receiving
similar entitlements to New Zealand citizens and residents and that increasing the
allowance may incentivise individuals to make unmeritorious claims.
37.
The INZ Comms team is aware of the proposed change in allowance and will have key
messages prepared for use in the event of media interest.
CONSULTATION
38.
INZ Finance, INZ Refugee and Migrant Services and MBIE Legal Services have been
consulted during the drafting of this paper.
9 This assumes an effective date of early September 2022. The amount will be lower if implemented later than
September.
7
39.
MSD have not been consulted on the proposals in this memo however, they have been
consulted previously with respect to methodology for calculating the allowance to
ensure it was reasonable.
NEXT STEPS
40.
If the proposed increase to the allowance is approved, INZ will move to implement the
increase by the middle of November 2022 and will prepare messaging to stakeholders at
the appropriate time.
41.
Given the potential risks set out above, if the allowance increase is approved, the
Minister of Immigration will also be briefed on the increase.
8
