Welfare reforms bringing positive results

  • Paula Bennett
Housing Social Development

Comprehensive changes to the welfare system are already proving successful, with increasing numbers of people moving off benefit and into work, Social Development Minister Paula Bennett says.

Result 1: Reduce the number of people who have been on a working age benefit for more than 12 months

  • Target: Reduce the number of people continuously receiving these working-age benefits, which will become the new Job Seeker Support, for more than 12 months by 30 per cent, from 78,000 in April 2012 to 55,000 by 2017.

“In the year to March 2013, the number of long-term beneficiaries has dropped from 78,212 to 75,366 – a decrease of 2,846, or 3.6 per cent,” Mrs Bennett says.

“We have set ourselves an ambitious target and this is a positive start, highlighting the progress we are making and will continue to make.  

“The new Service Delivery Model, introduced at 24 Work and Income sites last October, has seen 10,000 beneficiaries assessed as being at risk of long-term welfare dependence,” Mrs Bennett says.

“By working intensively with this group, we’ve already seen the total number of people on a benefit reduce by over 6,000 over the past year.”

This model will be rolled out nationwide in July, with around 91,000 people to receive intensive one-on-one case management.

Budget 2013 announced 354 extra frontline staff, who will be taking a much broader approach to provide a new level of support for people.

The next phase of welfare reforms comes into effect on 15 July, and will modernise and simplify the welfare system.

The seven current benefit categories will be replaced by three new benefit types: Jobseeker Support, Sole Parent Support and the Supported Living Payment. 

“We have asked a lot from Work and Income staff throughout these reforms, and the results of their efforts are already apparent.

“We are seeing the success in working differently with beneficiaries, and are putting the right supports in place to help people into work.”