Media Release

PM Admits Welfare Roll Out of Control
Tuesday, February 9, 2010

In his statement to parliament Prime Minister John Key today said that New Zealand needs to bring welfare rolls "back under control".

"Mr Key's assessment of the situation is correct but his prescription for bringing the rolls back under control is not," said Lindsay Mitchell, welfare commentator.

"Work-testing the DPB when the youngest child is six will simply encourage some people to ensure their youngest child is never older than six. In other words they will add children to their benefit. It is already the case that around 5,000 babies are added to existing benefits every year. At the very least a cap on the number of children needs to be applied."

"He talked about stricter criteria and testing for those on the sickness and invalid benefits yet mentioned nothing about, for instance, compulsory treatment for drug and alcohol addicts. He said the reforms would 'squarely focus on helping people get back to work as soon as possible'. But Labour had already implemented extensive reforms aimed at achieving exactly this and made no impression on the numbers, which continue to grow. Last year, under the new National government, the number on the sickness benefit grew by 16 percent, the biggest growth in any year ever."

"But the main problem with Mr Key's prescription is that beneficiaries, and potential beneficiaries, have heard it all before. Welfare is business as usual. Any government serious about reducing dependence would be spelling out time limits, and strict conditions of receipt which would manifestly change expectations. He has missed the opportunity again."