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Welfare Overhaul: Removing the Subsequent Child Policy

07 September 2020.

Cabinet agreed to remove the additional dependent child policy (commonly known as the subsequent child policy) from the Social Security Act 2018. This policy currently impacts eligibility for Sole Parent Support and places obligations on parents to return to work earlier if they have an additional child while receiving a main benefit.

The Minister for Social Development will report to the Cabinet Legislation Committee in due course on the appropriate legislative vehicle to amend the Social Security Act 2018. This legislative change is planned to come into effect in November 2021.

Please note – The Cabinet paper had a typographical error in paragraph 31: the data is at May 2019 not July 2019, and Impact Summary is the same. This does not have a substantive change on the assessed impact and cost of the policy.

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