Uptake of Government’s Training Incentive Allowance skyrockets

  • 600 per cent increase in uptake of the Training Incentive Allowance
  • 4,848 people have been supported since the allowance’s reinstatement (1 July 2021)
  • 3,909 people have accessed the Training Incentive Allowance during the period 1 January 2022 to 30 September 2022
  • As at the end of Quarter Three 2022, 42 per cent of recipients identified as Māori, 7 per cent as Pacific, and 90 per cent are female
  • Almost three quarters (71%) of TIA recipients are in courses level 4 or higher (Bachelor’s degrees, Graduate Diplomas and Certificates.

The Government’s Training Incentive Allowance, which was reinstated as part of Budget 2021 as a Manifesto commitment of the current Government, has had an overwhelming response with an over 600 per cent increase in uptake from 1 January to 30 June 2022 in comparison with the same time last year.

“Reinstating the Training Incentive Allowance was an important investment to make, one that is very close to my heart, and one that is important now more than ever, as we secure our recovery from COVID-19,” Minister for Social Development and Employment Carmel Sepuloni said.

“We’ve been very deliberate with our focus on not only supporting people into work, but ensuring job seekers have the skills, qualifications and support to fill the needs of employers and contribute to their households and whānau, communities and our economy,” Carmel Sepuloni said.

“The uptake of the allowance reflects people’s desire and determination to get into work, but even more so, as I’ve heard from many participants, has helped them to achieve their goals of securing permanent employment.

“This is one tool amongst many in our toolbox that we’re using to support people off benefit and into work. 78 per cent of grants this quarter were to clients receiving Sole Parent Support, Young Parent Payment, and Jobseeker Support. The Training Incentive Allowance is proving pivotal as we take immediate action to break the cycle of long-term benefit dependency.

“The Ministry of Social Development have been running promotional campaigns on the allowance and working hard to ensure people know where and how to access it. They’ve also sought to make the application process more accessible for clients with processing standards made permanent to create a more seamless interaction for those wishing to access the allowance.

“We’re pulling out all the stops to ensure people are able to access the multitude of supports available to learn and upskill which is why MSD have been working with StudyLink to coordinate efforts and communicate the suite of study support on offer.

“From supporting people like Ann from Northland, a solo parent of six, to Yvette in Christchurch who was supported by the allowance to complete her university study and graduate with a double major in psychology and education – we know that the allowance opens up new opportunities and changes lives.

“I know so many solo mothers who’ve been lifted off benefit and gone into work by the Training Incentive Allowance, including myself, and I want to afford this same opportunity to every other New Zealander. This was a key manifesto commitment for our Government, and one which aims to restore the ladder which was pulled from so many New Zealanders by the previous National Government,” Carmel Sepuloni said.

Click here to watch a wrap of this morning’s visit and announcement.