Bill gives more flexibility for sole parents to move into work

New Government legislation tabled in Parliament today abolishes the work test for sole parents on the Domestic Purposes and Widows Benefits.

Social Services and Employment Minister Steve Maharey said the Social Security (Working Towards Employment) Amendment Bill delivers on the Government’s commitment outlined in Pathways to Opportunity released earlier this year to develop a social security system that responds better to the needs of individuals and their families.

“The current work test fails to recognise the different circumstances that families are in. The bill provides that it will be removed from 26 August 2002.

“From this date the age of the youngest child in a family will no longer determine whether sole parents on DPB and widows benefit are required to work, and whether they work part time or full time.

“Instead, everyone on these two benefits regardless of the age of their children will be required to plan for their future and to move into work as their individual and family circumstances allow. They will be assigned a Case Manager who will actively work with them to assess immediate issues affecting them and their family as well as developing longer term aspirations and plans.

“People on DPB and widows benefits will develop an individual ‘Working towards Employment Plan’ with the assistance of their Case Managers. The Plans will include goals and the steps to achieve those goals.

“Case Managers will be trained and well connected with their local communities to work with people on benefits to identify practical steps and opportunities to get into paid employment.

“The removal of the work test is also accompanied by a change in the abatement rate. Currently the abatement rate is attached to the age of youngest child with a higher abatement rate for those with no children or a youngest child over 14yrs. The single abatement regime for all people on DPB and Widows Benefit will mean those with no children or a youngest child over 14yrs will be able to keep more of their earnings and be better off in paid work.

“All DPB and Widows beneficiaries will have their income abated at the same rate regardless of the age of their children. Income between $81 and $180 will be abated at only 30% allowing people on these two benefits to retain a greater share of their earnings.

“These changes represent social development in practice. They are based on the principles of investing in people, working together and using a broader range of support and assistance to achieve sustainable outcomes. They introduce an improved and more flexible service that caters for beneficiaries’ individual needs.

“This approach has taken the effective aspects of other welfare models and woven them into a social development model, which is unique to NZ,” said Steve Maharey.