Nick Smith - Nelson MP, Minister National Government

Welfare That Works

01/04/2010

Welfare is a safety net for New Zealand families. It should support people when they are most in need, encourage them to get back to work, and act when they can’t take responsibility for themselves and the people who depend on them.

But long-term welfare dependency imprisons beneficiaries in a life of limited income and limited choices.

Around 345,000 New Zealanders receive a benefit, and this year, will cost taxpayers more than $7.6 billion - that’s $20.8 million a day. We want to ensure this money is spent effectively.

That’s why National campaigned on improving our benefit system. We believe that every New Zealander who can work should be working. We want a welfare system that is fair, that improves outcomes for beneficiaries, and supports economic growth.

With this in mind, Social Development Minister Paula Bennett has announced the Government’s Future Focus package for benefits, aimed at rebalancing obligations and support, and bringing an unrelenting focus on work.

Under Future Focus, we are introducing a number of new obligations.

There will be new part-time work obligations for people on the Domestic Purposes Benefit (DPB) with a youngest child aged over six, and for people on a Sickness Benefit who have been medically assessed as being able to work part-time. We are also introducing more graduated sanctions for people who don’t comply with their work obligations.

We are changing the Unemployment Benefit so that after 12 months, a recipient must reapply. And we’re introducing more rigorous reassessments for Sickness Beneficiaries to get people back to work as soon as they are able.

Future Focus also provides more support for those who need it.

We are boosting childcare options for sole parents by expanding out-of-school support for children aged 5-13, and providing more training support for sole parents on the DPB.

We will pass legislation to ensure benefits rise in line with inflation.

And recipients of the DPB and Invalids Benefit will be able to earn $100 a week instead of $80 before their benefits are affected. This will provide incentives to work part-time and gain work skills.

We are also setting up a Welfare Working Group. This will be made up of social policy experts and community representatives, and will advise the Government on ways to reduce long-term welfare dependency.

Our Future Focus package can make a big difference. If we can help into work just 5% of sole parents with a youngest child aged over six this would save almost $200 million over a decade.

Research shows that children are always better off when parents are in work. Long-term welfare dependency imprisons families to a life of low income with limited choices and outcomes. The changes will be introduced from October 2010.

National is committed to our welfare system. The changes aim to support those in genuine need, while also being fair to taxpayers. Future Focus will help ensure that welfare is a safety net for families, assists people to get back to work, and provides a brighter future for beneficiaries – and all New Zealanders.

ENDS