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Welfare changes save taxpayers millions

Hon Paula Bennett
Minister for Social Development, Employment & Youth Affairs
8 August 2011

Welfare changes save taxpayers millions

Social Development Minister Paula Bennett says Future Focus changes implemented last September have saved taxpayers more than $6 million.

“The changes implemented last September as a pre-cursor to major reforms introduced clear obligations and greater fairness to the benefits system.”

Future Focus changes include requiring:
• Unemployment Beneficiaries to reapply if they remain on the benefit after a year and prove their eligibility to continue receiving assistance.
• DPB recipients with children over six to look for part-time work.

“This common sense approach has seen 7,400 people go off Unemployment Benefits and taxpayers have saved more than $6 million,” says Ms Bennett.

About half of the 7,400 didn’t complete the process, more than 2,000 were in work and 1,400 had left the country, were studying or just failed the work test.

“This simple policy change alone is expected to save a further $3.5 million by October,” says Ms Bennett.

Since September last year, more than 10,800 people have gone off the DPB into work.

“The number of people who’ve found jobs and gone off the DPB since last year’s welfare changes has gone up by 20 percent, that’s significant”

Prior to Future Focus changes there were 13,700 people on DPB doing some part time work and now there are 15,300.

ENDS

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