Working to end culture of dependency

The National-led Government has announced a comprehensive overhaul of the welfare system to ensure we support people off welfare and into work.

Last month, benefit numbers dropped by more than 1000. There are now 319,327 people on a benefit in New Zealand, with 50,283 of those on unemployment benefits.

An actuarial valuation of our welfare system shows the lifetime cost of the current beneficiary population to the taxpayer is $78 billion. The valuation also told us that the group with the highest lifetime costs on welfare are those who go on benefits before age 18. So our focus on youth has been the right choice. And the Future Focus reforms we made in our first term have helped reduce the number of those on unemployment benefits by 15 per cent.

Our investment approach to the welfare system is putting money into things that get people off benefits and into work. Our approach changes the entire focus of the welfare system so that support is invested where it will make the biggest difference.

It means intervening earlier, and investing in more support for those who're capable of working, but are likely to remain on benefit long-term without help.

In some cases, this means investing more in the short-term to see people move off benefits permanently over the long-term. This approach ensures the Government to spend taxpayers' money where it will have the biggest impact, whether this means getting treatment for a back injury, access to mental health services, or help to manage a pain-related condition.

We are also delivering on another key campaign promise - to strengthen the obligations placed on those who are beneficiaries. We've announced new social obligations as part of our reforms that place important health and well-being obligations on parents to ensure children of beneficiaries get the best possible start in life.

Beneficiaries with dependent children will need to ensure their children are enrolled in at least 15 hours of early childhood education, and ensure they attend school from age 5 or 6. They will also need to be enrolled with a general practitioner and complete core health checks. We expect reasonable steps to be taken to meet these obligations, and we will work with families where barriers exist. Parents will have three opportunities to meet these obligations before a financial sanction of 50 per cent will apply.

Reasonable and achievable, these obligations reflect the expectations most New Zealanders have of parents.

One last thing: Horizons One Plan will face much scrutiny in the next few weeks as land owners, councils and farmers strive to understand the impact it will have, both positive and negative, on the future of this region.