Sunday, September 26, 2010

New benefit rules from tomorrow

According to an e-mail I received from the Ministry of Social Development, from tomorrow;

• Sole parents whose youngest child is six or older will need to look for part-time work. We’ll help people find suitable jobs that fit their role as a parent and may be able to help with after school care if needed.


At the end of August there were 112,500 people on the DPB. Last year 43,000 had a youngest child aged 6 or older.

The pro-welfare advocates say this new requirement is "draconian" but it only brings NZ in line with Australia and the UK. Other European countries and the US have a much lower youngest-child criteria.

Crucially, what is omitted is some sort of rule to prevent addition of children to the benefit extending eligibility.

• People who are unemployed will need to reapply for Unemployment Benefit every 12 months. A case manager will work with people to complete a comprehensive work assessment to determine what they can do and how we can help them find suitable work.


A yearly reapplication should be the very least that is required.

• People who are unable to work due to illness will be encouraged to look at what they can do. From May 2011, if someone is assessed as being capable of working at least 15 hours a week, they’ll be expected to look for a suitable job.


The success of this strategy will rest with the medical fraternity delivering objective assessments. The risk is more people will attempt to transfer to an invalid's benefit. And....

• People on Invalid’s Benefit will see no change to the eligibility. We will continue to support those people who are unable to work because of permanent and severe sickness, injury or disability.


• People applying for Hardship Assistance will be given more help to manage their money.



Compulsory budgeting advice.

• A young person supporting themselves on Independent Youth Benefit will be encouraged to stay in education or training that will better prepare them for future work.


Encouraged. What does that amount to? Why not 'required' to stay in education and training?

All in all these changes are fairly wishy-washy yet have taken almost two years to implement (in the case of changes to the sickness benefit, almost 3). They will modify how compliant and motivated beneficiaries behave, but those who are only interested in the status quo of their current situation will find ways around them. In some respects the changes may provoke some very unwelcome responses, especially among the existing and would-be DPB population. Dependent children - their own or someone else's - will remain the key to long-term eligibility.

No comments: