Ministers set new targets to reduce dependence

  • Paula Bennett
  • Bill English
State Services Finance

The Government has set itself ambitious new targets including 75,000 fewer New Zealanders being on benefits by June 2018 as part of its Better Public Services drive, Finance Minister Bill English and State Services Minister Paula Bennett say.

The ministers today released the latest results from the Better Public Services programme showing almost 5000 people (-6.6 per cent) came off long-term Jobseeker Support benefit in 2014, the number of children who experienced substantiated physical abuse decreased by almost 200 (-5.6 per cent) over the 12 months to September 2014, infant immunisations are at an all-time high and crime numbers continue to fall. 

“The latest results show that the programme, which measures progress in 10 areas chosen in 2012 to focus on improving the lives of people who most need the Government’s help, is working,” Mr English says.

“All the areas are making progress including improvements in the immunisation rate, a reduction in the incidence of rheumatic fever and we expect that results for NCEA Level 2 will show progress towards the 85 per cent achievement target.

“However, in some of our target areas it is not yet clear whether the positive trends are sustainable.  The challenge now is to find ways to influence those who are harder to reach and who may be in circumstances that make it more difficult for them to respond. This will require a broad search both inside and outside the public service for better solutions, more innovative ideas and   intensification of activity to keep making progress. We will track results and spend our social investment funds where they make the most difference.”

Mrs Bennett said ministers were today announcing they were extending the Better Public Services  welfare targets and, as signalled earlier,  also challenging themselves and the public service to do even better at reducing crime, and improving the workforce skills of young adults.

Mrs Bennett said the new targets are:

Result 1 -  A 25 per cent reduction (from 295,000 people as at June 2014 to 220,000 as at June 2018) in the total number of people receiving main benefits and a $13 billion reduction in the long-term cost of benefit dependence, as measured by an accumulated Actuarial Release, by June 2018.

This replaces the current target of a 30 per cent reduction - 78,000 people to 55,000 people – in the number of working-age recipients of Jobseeker Support who have continually received benefits for more than 12 months.

Result 6 -  60 per cent of 25-34 year olds will have a qualification at Level 4 or above by 2018.

This replaces the current target of 55 per cent of 25-34 year olds holding those qualifications by 2017, which has almost been achieved.

Result 7 – A 20 per cent reduction in total crime by 2018.

This replaces the target of a 15 per cent reduction by 2017, which has already been achieved.

Mrs Bennett said the change to the welfare reduction target recognised that many people who were not on Jobseeker Support also wanted to work and they deserved the same levels of support as jobseekers to do that.

“We know that around 90 per cent of people who went on benefits aged 16 or 17 also lived in benefit-dependent homes as children. This reinforces the urgency and importance of getting people in to work to improve their circumstances, and to help break the cycle of inter-generational welfare dependence.

“We have been making some real progress in this regard and it is good to see from the latest results that people who have been exiting Jobseeker Support have been staying in work for longer.

“There has also been real improvement in helping young people and young sole parents in to work so it makes sense to include them in this expanded new target because they are most at risk of long-term dependence, with a resulting heavy cost to themselves and taxpayers.”

A link to the latest progress on BPS Results is here: http://www.ssc.govt.nz/better-public-services