3. TIM MACINDOE (National—Hamilton West) Link to this
to the Minister for Social Development and Employment
What progress has been made on the implementation of Future Focus?
Hon PAULA BENNETT (Minister for Social Development and Employment) Link to this
When we announced Future Focus, there were 345,000 beneficiaries; now there are 328,000. So, despite a recession, we now have 17,000 fewer people on benefits. Prior to Future Focus, 75 percent of beneficiaries had no work-test obligations. Now, because of these changes, that figure is 63 percent. Future Focus is responsible for much of this success because we have had a greater focus on work, on more childcare support, and on clear obligations. Seeing those on the unemployment benefit having to reapply has made a significant difference in this area, as well.
Hon PAULA BENNETT Link to this
As I have said in this House many times, help is there for those who need it. There is certainly help through special-needs grants and advances on benefits. But 54 percent of beneficiaries have not required a single hardship grant during this 9-month period, and 15 percent of beneficiaries have asked for just one hardship grant. That suggests the majority of people on a benefit are managing their finances reasonably well—and there is help for those who need it. Another interesting fact is that 97 percent of those over 65 have not asked for a single special hardship grant.
Hon Annette KingWere the 7,400 people who she said came off the unemployment benefit under Future Focus all under the age of 25 years, single, and receiving no other taxpayer support; if not, how did she calculate the $6 million savings?
Hon PAULA BENNETT Link to this
No, they were all people who were on the unemployment benefit, so they were not necessarily aged under 25; they were within the age for the unemployment benefit. The Ministry of Social Development calculated that of those who were on it, they were most likely to come off over a period of time and it did the calculation that way. That is how it came up with that figure.
Why, if Future Focus has been such a success at getting people off the domestic purposes benefit, have the numbers of people receiving this benefit reached a 10-year high, with the cost to taxpayers having increased by nearly $200 million since she became the Minister?
Hon PAULA BENNETT Link to this
Because there has been a thing called the global recession. It has actually had an effect on jobs, which the member may not have noticed. Things have been a little bit tough in the last 3 years. So, yes, we have seen, as the household labour force survey says quite regularly, a reduction in part-time employment opportunities for those on the domestic purposes benefit. That makes the changes since September last year all the more remarkable. The fact that in these times, as we come out of recession, we have managed to find work for more people who were on the domestic purposes benefit than before is remarkable and a sign of these changes.