Media release from Minister for social development, employment & youth affairs Paula Bennett

A comprehensive package of reforms unveiled today by Social Development Minister Paula Bennett, aims to break the cycle of welfare dependency.

The Future Focus package delivers on National's pre-election promises by rebalancing expectations and obligations.

"I strongly believe people are better off in work; it's better for them individually, for their children and their families," says Ms Bennett.

"Most New Zealanders want to work. As the economy gradually improves, picking up speed next year, more jobs will become available and as they do, we'll expect people to take them," says Ms Bennett.

345,000 New Zealanders currently receive a benefit, costing taxpayers $4.8 billion a year. Future Focus aims to support only those in genuine need. There is an expectation that those who can work, do.

The changes announced today will be introduced gradually over a year, from October.

Those still receiving an Unemployment Benefit after a year will be expected to reapply. Work testing ensures people don't get stuck in the system.

"People have an obligation to find work if they're able and if they don't, we'll step in and help them," says Ms Bennett.

All benefit rates will increase annually in line with the cost of living increases. This will now be enshrined in law.

Sole parents with children six years and over will be work-tested and required to look for part-time work. Next year, Sickness Beneficiaries assessed as being able to do part-time work will face the same obligations.

We will provide help, with more job-focused training. Childcare provisions will be targeted at those parents who most need it.

Abatement rates will be increased for some benefits, providing a work incentive.

The abatement threshold will increase from $80 to $100 per week. Part-time thresholds also increase by $20 from $180 to $200 per week.

28,000 people will be better off because of changes to abatement levels.

We're also making changes to hardship and emergency assistance.  

The process will be streamlined for occasional users while high users will have to show they're making every effort to manage their finances to get extra help.

"We expect people to step up and take some responsibility for managing their own finances," says Ms Bennett.

Other changes include:

• Changes to childcare assistance thresholds for high income earners
• Strengthening obligations for Independent Youth Beneficiaries to make education the priority
• Effective sanctions that don't penalise dependant children
• More rigorous assessments for Sickness Beneficiaries that focus on what people can do, not what they can't
• Stricter application of eligibility criteria for Invalids Benefit

"These changes mean New Zealand's welfare system provides help for those who genuinely need it, without becoming a lifestyle choice for those who don't," says Ms Bennett.

For more information: http://www.msd.govt.nz/about-msd-and-our-work/work-programmes/initiatives/future-focus/index.html