Key announces benefit crackdown

BY JOHN HARTEVELT
Last updated 14:31 09/02/2010

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Beneficiaries face tough new measures in legislation set to be passed this year, the Prime Minister said today.

John Key's statement to parliament this afternoon said the criteria and testing for the sickness benefit would be changed - "to ensure it only goes to those people who are genuinely too sick to work".

"The number of people receiving a sickness or invalids benefit in particular has been allowed to grow out of control in recent times," Mr Key said.

"Without fundamental changes, this number is expected to keep growing over the longer term, by perhaps 50 percent over the next 15 years.

"We owe it to our children, the taxpayers of the future, to bring welfare rolls back under control."

The Government would appoint a working group of experts to recommend ways to reduce long-term welfare dependency, Mr Key said.

There would be strict re-application rules for people on the unemployment benefit and an increase in the work and training expectations for people on the Domestic Purposes Benefit. There would also be changes to the benefit abatement regime, to improve incentives for beneficiaries to work.

Mr Key said the Government was concerned about the overall effectiveness of social services.

He said he was still worried about an emerging underclass in New Zealand.

"We are not convinced that our investment in these services is showing the results that taxpayers have a right to expect.

"We continue to hear of families being trapped between bureaucratic government silos, receiving ineffective and patchy services that only entrench the cycle of dependency."

Expectations among Maori leaders are high that the Government will pour millions of dollars in to the new Whanau Ora policy, which would devolve welfare spending to non-Government agencies.

Mr Key said the first stages of the Whanau Ora policy would be announced in the May Budget. The policy would cater to people of all races in need, but would be particularly effective for Maori.

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- © Fairfax NZ News

28 comments
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goat   #28   11:30 am Apr 18 2010

Rather than pushing all the invalids beneficiaries onto the sickness benefit why not make them all into C.E.O.s?

The positions are basically idential. It would solve all the countries financial problems, all that wealth being generated!

Most beneficiarie would of course require removal of the empathy centres of their brains.

Jock   #27   10:52 am Feb 10 2010

I am on an Invalids Benefit and certainly not by choice and would give anything to be able to hold down a full time job. Being on sickness or invalids benefit does have a stigma attached to it and is certainly not the lifestyle I want. Also competition for jobs is fierce and I cannot compete with another applicants and an employer will take on a person without problems over one who has problems. Its just logical!

Once a Kiwi   #26   01:01 am Feb 10 2010

Brilliant ... finally, hearing news of an NZ PM trying to wean people of benefits. Goodness that will be a shock..Im going to have a laugh about it with all the hard working kiwis who got sick of funding that luxury previously...and moved to Aust!

Ross   #25   06:18 pm Feb 09 2010

Here's a novel idea...How about coupling the increase in GST with actual reductions in publicly funded expendatures? Don't take tax-payer's money then turn right around and give a portion back in "working for families" for example. Almost 400,000 households receive this benifit. That is immoral. Let us keep more of our hard earned money in the first place and we won't to be dependents!

Rick   #24   05:41 pm Feb 09 2010

trevor #12 - This is all aimed at long-term beneficiaries, what does that have people who've gone on the benefit recently ? Try thinking before you comment and you might have a chance of making sense.

Rick   #23   04:57 pm Feb 09 2010

Deb #13 - hah back injuries, neighbour has been on sickness benefit for several years but has no trouble operating his boat trailer. Come to think of it, how do you operate a boat with a bad back ?

Edward   #22   04:49 pm Feb 09 2010

The crime and suicide rates will go through the roof. I think John will suffer dearly in popularity eventually if he doesn't stop secretly selling off everything to these business friends of his. You can only fool the masses until they SEE the effects.

steve   #21   04:27 pm Feb 09 2010

deborah thompson#13 i have a chonic long term back injury and work part time and i can tell you no passing of any legislation by the government is going to change by back.

I am so sick of hearing people like you spew your garbage.

What?   #20   04:08 pm Feb 09 2010

Government will pour millions of dollars in to the new Whanau Ora policy, which would devolve welfare spending to non-Government agencies

What? Please someone explain how running two agencies are going to help or have I got it wrong and they are going to close winz down and just have this new one?

I'm confused. Can some shed any light on this for me. Don't like to comment on something I don't quite understand.

Zyan   #19   03:58 pm Feb 09 2010

One of the biggest group of benefit receipients is the Ministers and MPs. J Key has been labelled as a man of talks only who lacks action since he tipepd Helen Clark out in Nov 2008, now he unleashes his bites! Yes, benefits will be culled, government charges will go up, GST and petrol taxes will go up and new and innovative taxes will come our way. Perhaps this is the key path to catching up with Australia!


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