Social Security (Youth Support and Work Focus) Amendment Bill second reading

The welfare system has not been working as it could. It has allowed too many to become trapped in an intergenerational cycle of dependence.

There are more than 317,000 people on welfare right now. Add to that the 220,000 children living in welfare dependent homes and there are more than half a million New Zealanders reliant on welfare in any given week.

This Government is transforming the welfare system into one that is modern, active and responsible because currently it is passive, out of date and quite frankly it is failing us.

We started this work with Future Focus changes in 2010 and we continue with the major reforms now before the House.

We have had some successes in that time and in the last month alone we saw the Unemployment Benefit drop to 49,000 after the peak in January 2010 when 68,000 were on this benefit.

We never hit the projected highs of 95,000 on Unemployment Benefits as forecasted and as the economy improves and other measures set in, we’re seeing a reduction on Unemployment Benefits.

And at this point the Greens and Labour would say their point is made and that we should leave those on welfare alone and the problems will fix themselves through the economy.

But factually that is not true.

While the Unemployment Benefit figures dropped significantly from 2003 – 2007 the Sickness and Invalid’s Benefits increased by nearly 20,000 people.

We’ve managed to stabilise that trend in the last two years and in fact the Invalid’s Benefit has decreased slightly.

Because of the policy changes we made through Future Focus in 2010, we now have Work and Income working better than it ever has. But more needs to be done.

We could leave it as it is, sure. And yes the Unemployment Benefit would decrease significantly as the economy bounces back.

But that would mean ignoring the other 270,000 people on welfare. That would mean wiping them off as not worthy of support into work and independence of the State.

And I will not do that.

I understand completely how frightening change can be. I get how debilitated and worthless some feel on welfare.

And the left would say that’s a strong enough reason to leave well enough alone, to feel sympathy for those on welfare.

They would pat them on the head and feel sorry for them. How condescending, how patronising and how meaningless.

I will not do that.

I understand how frightening change can be and I acknowledge that up-skilling, gaining confidence and getting a job is not easy.

But as Minister of Social Development I will continue to push, cajole, incentivise, obligate and at the end of the day put all my belief in those people on welfare.

And I will take some of the anger that comes from those most unsure and often frightened because to ignore the benefits of work, to only look at what they can’t do instead of what they can do, was a failure of the previous Labour Government, a failure I will not allow to continue.

Long overdue change is on its way and this is the first stage of this second term Government’s welfare reforms.

Youth

It is with good reason we start with our youth.

Our next Bill will include:

• a change of category for all benefit types:
• increased work obligations for those on the current Sickness Benefit
• penalties for recreational drug users who don’t pass a drug test to get a job
• cancellation of benefits for some with outstanding warrants for their arrest – to name a few.

But this Bill is really about our youth and it also has some changes for women alone, widows and work testing DPB.

To come to this policy change we looked at who was coming onto welfare and why.

Any of the reasons are complex.

Of the approximately 10,000 that go onto welfare at the age of 18 or younger, their backgrounds are often complex and varied.

Education hasn’t really worked for most of them. They often lack strong role models and the life skills to get them ahead in life.

Of the estimated 14,000 young people Not in Employment Education or Training, we know that up to 90% will go on benefit by the time they are adults.

We have to stop that flow.

This is a group that Labour and the Greens do a lot of hand wringing about and use to gain political points.

But the Opposition has made absolutely no difference to this group of young people.

So this group of at-risk young people, who are disengaged, now have a National Government backing them to do better.

We will give them the kind of support they need by contracting with external non-government providers.

Those providers will have the flexibility on how they work with these 16 and 17 year olds but will be very clear on the outcomes that the government is purchasing.

The emphasis is on education and training and life skills.

Some young people will need intensive and expensive interventions; others not so much.

We’re actively targeting these young people because we believe that with the right support, they can get the education and training they need to work, keeping them out of the welfare system and stopping that cycle of dependence.

Teen parents

This Government is the first to truly support teen parents on welfare.

In nine years under Labour, these teens got nothing but a weekly lump of cash to spend however they liked.

These are teenagers and they need help to learn the skills to be good parents, to manage a budget, pay the bills and live well.

They also need someone to believe in them and help them see a brighter future than the one they’ll get on welfare.

This Government will do that.

We’re providing the budgeting and parenting courses, we will ensure they finish their education and get training so they have the skills to one day work a decent job.

Remembering these are teenage parents and we have a responsibility to them.

We’re providing $80 million in childcare for these teen parents to allow them to do these things because we understand that’s the kind of practical support they need.

We are providing the right incentives and obligations within the welfare system and removing the barriers to gaining independence.

That is what we mean by an active system.

Conclusion

There are those who will say those on the ‘right’ only talk about welfare when we want to polarise the nation and draw attention away from something else.

But that couldn’t be further from the truth.

Every day as Minister I have worked to better the lot of those on benefits.

This Government will continue to do so - we can and will make a positive difference for beneficiaries.

I hear much criticism on National’s stance on welfare dependence.

But I am yet to hear an alternative from the Opposition – except to give beneficiaries more money each week.

Will they reverse these changes?

Will they take away support from teen parents?

These changes will lead to better lives for thousands of New Zealanders.

I commend this Bill to the House.