Act 'can't be serious' about benefit eligibility plan

Act wants all beneficiaries to reapply for their benefits if it forms a part of the next Government.

And eventually it wants to make all people who have been unemployed for more than six months attend full-time work experience.

Speaking to Act's Whangarei branch, welfare spokeswoman Dr Muriel Newman said all beneficiaries except those receiving pensions or physically incapable of working would be forced to reapply.

"The advantages of such a pro-active step would be twofold: not only would it help eliminate beneficiaries' barriers to work but it would also expose those receiving benefits to which they were not entitled."

Assessments would help remove obstacles to individuals returning to the workforce, for instance by helping with childcare or transport.

"Requiring everyone to reapply for their benefit would also involve a revaluation of their welfare eligibility," Dr Newman said.

"Those receiving state assistance while ineligible - whether for lifestyle purposes, fraudulently and the like - would have their benefits stopped."

Act estimated benefit fraud was costing around $1 billion a year.

Dr Newman said the reapplication process, which would be similar to an audit of all beneficiaries, would be phased in over time.

This would also allow the next steps in Act's welfare policy to be phased in. These would include a six-month time limit on benefits, after which beneficiaries would have to attend full-time work experience.

Social Development Minister Steve Maharey said yesterday that Act "can't be serious" about its "extremely expensive plans".

Implementation would be expensive and more staff would be needed to cope with "the paper shuffling exercise", he said.

Beneficiaries already had to regularly check with their case managers, Mr Maharey said.

"Act appears to ignore the fact that this Government has already introduced changes to ensure that beneficiaries have regular contact with their case managers," he said.

Under those changes, sole-parent beneficiaries on the domestic purposes and widows benefits now had to draw up an annual plan detailing how they would prepare themselves to re-enter the workforce.

"Unemployment benefit numbers have almost halved since 1999, enabling staff to see clients more regularly," Mr Maharey said.

"The Government is also assisting those on the invalids and sickness benefits to move into work as they are able to.

"Act seems happy to write this entire group of beneficiaries off, since their new policy would not apply to them at all."

- NZPA