WORK FOCUSED WELFARE

Changes to welfare benefits herald a radical change in welfare direction and reinforce the Coalition Government's belief that paid work is the key to achieving personal economic and social independence, the Minister of Social Welfare Roger Sowry said today.

"Domestic Purposes Beneficiaries in particular are being given a head start with more people able to get child care support, and removing the major barrier to moving off welfare and into work.

"This extra support will help sole parents take up work opportunities and show their children that there are positive alternatives to staying on a benefit.

"Changes to the Domestic Purposes Benefit, Widows, Sickness and Invalids Benefits will ensure that the welfare safety net does not remain a trap for working age New Zealanders with some work capacity, but is still reaching people in genuine need.

"The purpose of welfare assistance for working age New Zealanders is to provide support, incentives and opportunities during the transition from welfare to work.

"This Government believes it is time that New Zealanders had a work-focused welfare system that offers incentives and encouragement to help people into work, while matching financial support with obligations to look for work," Mr Sowry said.

Domestic Purposes Benefit and Widows Benefit

From 1 February 1999, new work testing obligations will apply to Domestic Purposes and Widows beneficiaries.

If your youngest child is aged 14 or over you will be expected to look for full-time work - currently you must be looking for part-time work.

If your youngest child is aged 6 to 13 you will be expected to look for part-time work - currently if your youngest child is aged 7 to 13 years you are required to come into Income Support for a yearly planning interview.

If your youngest child is aged under 6, from 1 February 1999 you will be expected to come into Income Support for a yearly planning interview.
Assistance For Working Parents

"Along with these expectations we are offering positive financial support to make it easier for sole parents to take up work.

"More out-of-school child care services will be developed with $3.15 million funding set aside over the next three years.

"The Government will introduce a subsidy for low income working parents with children aged 5 - 13 years to help with out of school care costs. This will expand the existing child care subsidy which at present only covers pre-school age children.

"These two initiatives will ensure that sole parents have the means and the opportunity to provide appropriate care for their school age children while they take up work, and reduce the number of 'home alone' cases," Mr Sowry said.

Sole parents with no access to sick leave in their first six months of full-time work may be eligible for financial assistance if they need to take time off work because they or their children are sick. Details of this provision will be available later in the year.

"Sole parents who move into work will be able to keep the rate of any benefit debt repayment at its pre-work level for the first three months of work.

"From 1 February 1999 new work testing obligations will apply to all spouses of beneficiaries - currently only partners of those receiving the Unemployment Benefit are work tested.

"Spouses of beneficiaries will be subject to the same new work testing obligations for Domestic Purposes Beneficiaries and Widows Beneficiaries. As with all changes, Income Support will fully explain details to people affected nearer the time of implementation," said Mr Sowry.

Sickness Benefit

"From 1 July 1998 the current rates of sickness benefit will be aligned with the unemployment benefit. For example, the current sickness benefit rate for a single person with no children, aged 25 and over, will change from $153.47 per week to $147.34 per week. Rates for existing sickness beneficiaries do not change.

"From 1 October 1998 the sickness benefit will become part of the Community Wage and therefore subject to the work test, which will be deferred for the duration of the person's sickness," said Mr Sowry.

Invalids Benefit

"From 1 September 1998 the eligibility criteria for entitlement to invalids benefit will be clarified to ensure that the benefit reaches those New Zealanders who meet the current criteria of being severely and permanently incapacitated from work. Application forms and medical certificates will also be simplified.

"A new work capacity process will also be trialed to identify what level of work, if any, a person is capable of and determine what assistance will help them move into paid work, to the extent they are able. A similar approach will be taken to those receiving a Sickness Benefit," Mr Sowry said.

Other Benefit Changes

A number of changes to other benefits will come into effect from 1 July 1998.

"New migrants, other than those from Australia and the United Kingdom, must be resident in New Zealand for two years before they can access welfare benefits. Currently all new migrants must be resident for one year, apart from Australia which is six months and the UK, Jersey and Guernsey which have immediate access. The two year stand down will apply to Australians once the bilateral social security agreement is amended later this year.

"Unemployment, Training or Sickness beneficiaries aged 18 to 19 years with no dependents and living with their parents will receive a new 'at-home' rate of benefit of $98.22 per week from 1 July 1998.

"Only students receiving a student allowance during the academic year will continue to have access to the emergency unemployment benefit from 1 July 1998," said Mr Sowry.