Benefit system in 'good shape'

KATE CHAPMAN

More people now claim they are too sick or disabled to work than a decade ago. But the man in charge of dishing out benefit money says the system has improved under his watch.

Peter Hughes has been the chief executive at the Social Development Ministry since it was created.

Now, after 10 years at the helm, and having being named public sector chief executive of the year by a political newsletter, Mr Hughes is moving on.

The 53-year-old will become head of Victoria University's School of Government.

He said he felt he was leaving the department in "pretty good shape", despite the rise in some benefit numbers.

Before the 2008 recession, working-age unemployment beneficiaries were down to fewer than 18,000. In June the number was 56,264.

The number of working-age sickness beneficiaries rose from 33,327 in June 2001 to 58,009 this June. The number of working-age people on an invalid's benefit followed a similar pattern – up from 58,585 10 years ago to 84,836.

Mr Hughes believes people are getting trapped in the welfare system.

"I don't think it's about rorting the system, but people get stuck and they need help to get out."

That could be rehab, support in the workplace, childcare or transport.

"We had one of the first welfare systems in the world for all the right reasons, but it was very passive for a long time."

Attempts have been made to improve the delivery, but more needed to be done on improving policy, and that was where the Government came in.

Mr Hughes said the Welfare Working Group had made a "fair shot" at policy reform.

Among the group's recommendations were requiring beneficiaries to look for work or face cuts to their payments, for single parents to look for 20 hours' work a week once their youngest child was three and that beneficiaries aged under 18 live with a responsible adult. Mr Hughes refused to comment on the specific proposals as he was involved in advising the Government on the matter.

But, he said no-one wanted to see people staying in the welfare system longer than necessary.

"We know that for the same level of income, kids do better where that income's derived from paid work."

The welfare of children has been one of the hardest parts of the job for Mr Hughes.

Since Child, Youth and Family was wrapped into the ministry five years ago, every report about the death of a child in state care has crossed his desk. He feels an obligation to read them cover-to-cover, but says it has been a harrowing experience.

This country's attitude to child abuse was starting to change, he said. Identifying at-risk children must be about collaboration between community, government organisations, family and the wider community.

The need to work together, to break down the silos, and to streamline the public service were themes Mr Hughes would take with him into his next job.

He said New Zealand had too many public departments for a small country.

"I strongly believe that we're on the cusp of another set of reforms – although it won't be a big revolution like we had in the 90s, this will be more evolutionary."

- © Fairfax NZ News