Over the next three years New Zealand’s welfare system will be reformed with new benefits that recognise that most beneficiaries can and do want to work.
The new system takes a long term investment approach to getting people off welfare and into work. This means more intensive support will be provided to people who are capable of working but who are likely to remain on benefit long term without that support.
The Government’s expectation is that most people on a benefit are able to work, that they will make an effort to get work and they will have to show they are trying to get work.
12 percent of New Zealand’s working age population are on a benefit.
Under the new system three benefits will replace all of the main benefit payments by 2013. Benefit rates will remain at current levels and continue to be increased annually for inflation.