Lindsay Mitchell looks at Social Welfare Reform
in New Zealand and overseas.
in New Zealand and overseas.
CONTACT:
Lindsay Mitchell
ph/fx 04 562 7944
mob 021 132 5968
Other Information:
Whanau Ora
Reforms By Country
International Welfare Statistics
Social Security programs throughout the world
Welfare Reform
in NZ Politics
Friends of Welfare Reform
Recommended Books
More about:
Maori & Welfare
Welfare & Crime
Need help to search
Parliamentary Questions?
Archives
Media Releases & Articles 03-06
Lindsay Mitchell
ph/fx 04 562 7944
mob 021 132 5968
Other Information:
Whanau Ora
Reforms By Country
International Welfare Statistics
Social Security programs throughout the world
Welfare Reform
in NZ Politics
Friends of Welfare Reform
Recommended Books
More about:
Maori & Welfare
Welfare & Crime
Need help to search
Parliamentary Questions?
Archives
Media Releases & Articles 03-06
New Zealand Reforms
National produced a detailed policy paper prior to the 2008 general election.
The table below details the promises made and assesses the delivery of those promises.
1/ Direct quote from the National benefits policy backgrounder
2/ Direct quote from an OIA response
3/ Extracted from Work and Income's Manuals and Procedures (their emphasis)
Apparently the reforms were put on hold due to the recession, although other more severely affected countries pressed on with their plans eg the UK. As the process of drafting and implementing new legislation is long-winded delay was unnecessary.
In early 2010 there are new pledges to begin implementing them. In particular, requiring people on the unemployment benefit to reapply after one year, and work-testing the DPB when the youngest child turns six. The latter is a repeat of policy implemented when National was last in government.
It is worth noting that the plan to part-time work-test sickness and invalid beneficiaries emulates the Australian reforms. To date Australia’s disability pension roll continues to grow.
Recent reforms
When Labour took office in 1999 they removed the work-testing on the DPB and instead imposed a new process of planning to return to work. Much store was put by this process (and increased childcare subsidies) reducing the numbers on the DPB. The numbers did fall below 100,000 for the first time since the early nineties, but the reduction was very modest given the economic boom. At October 2009 only 24,500 of the 108,000 DPB beneficiaries had a Personal Development and Employment Plan (PDEP) in place.
Labour also attempted to stem to growth in invalid and sickness benefits through Pathways to Work and further changes in 2007. An Auditor General’s report found the new approach lacking in a number of ways and the numbers have continued growing on both benefits.
Auditor General’s report available at <http://www.oag.govt.nz/2009/social-development>
Submissions
There is now a bill - Social Assistance (Future Focus) Bill - before select committee, which intends legislating the above changes. (link)
Public submissions are due by 14 May 2010
National produced a detailed policy paper prior to the 2008 general election.
The table below details the promises made and assesses the delivery of those promises.
1/ Direct quote from the National benefits policy backgrounder
2/ Direct quote from an OIA response
3/ Extracted from Work and Income's Manuals and Procedures (their emphasis)
Apparently the reforms were put on hold due to the recession, although other more severely affected countries pressed on with their plans eg the UK. As the process of drafting and implementing new legislation is long-winded delay was unnecessary.
In early 2010 there are new pledges to begin implementing them. In particular, requiring people on the unemployment benefit to reapply after one year, and work-testing the DPB when the youngest child turns six. The latter is a repeat of policy implemented when National was last in government.
It is worth noting that the plan to part-time work-test sickness and invalid beneficiaries emulates the Australian reforms. To date Australia’s disability pension roll continues to grow.
Recent reforms
When Labour took office in 1999 they removed the work-testing on the DPB and instead imposed a new process of planning to return to work. Much store was put by this process (and increased childcare subsidies) reducing the numbers on the DPB. The numbers did fall below 100,000 for the first time since the early nineties, but the reduction was very modest given the economic boom. At October 2009 only 24,500 of the 108,000 DPB beneficiaries had a Personal Development and Employment Plan (PDEP) in place.
Labour also attempted to stem to growth in invalid and sickness benefits through Pathways to Work and further changes in 2007. An Auditor General’s report found the new approach lacking in a number of ways and the numbers have continued growing on both benefits.
Auditor General’s report available at <http://www.oag.govt.nz/2009/social-development>
Submissions
There is now a bill - Social Assistance (Future Focus) Bill - before select committee, which intends legislating the above changes. (link)
Public submissions are due by 14 May 2010
| What National promised | What National delivered |
| Re-naming 'Personal Development and Employment Plans' because, "It is not the government's role to help people develop a plan for social activities."1 | Please note that the Ministry has received no advice to discontinue PDEPs and no decisions have been made to change the name of these plans.2 |
| A requirement that the validity of a second medical certificate for a sickness benefit be reduced from 13 weeks to 4 because, "This will ensure more frequent assessments from the person's doctor."1 | If a person is unable to work and requires a Sickness Benefit for longer than four weeks they must return to their registered health professional and obtain a further medical certificate. A second or subsequent medical certificate can provide medical coverage for up to a maximum of 13 weeks.2 |
| Introduction of part-time work obligations for sickness and invalid beneficiaries assessed as being able to work because, "[However] there is no obligation for these people to do anything more than plan for their eventual return to work and talk to their case manager regularly."1 | A recipient of a sickness Benefit or Invalid's Benefit has no work test obligations, however they may be required to plan towards their future return to work.2 |
| Introduction of a more graduated system of sanctions for people who do not comply with work obligations because, "This step, or steps, will give Work and Income case managers more flexibility and additional tools to encourage beneficiaries to comply with their work obligations."1 | Legislation relating to work test sanctions was introduced in 1998 and was most recently amended in 2007.2 |
| Raising the abatement-free earnings threshold from $80 a week to $100 because, "This will help to encourage work wherever possible."1 | A person in receipt of a benefit can earn $80 gross per week before their benefit is abated.2 |
| Introduction of part-time work-testing on DPB recipients when their youngest child turns six because,"There is clear evidence that work obligations are effective."1 | Note clients receiving the Domestic Purposes Benefit cannot be pressured into taking up or accepting employment.3 |