The failure of Labour's 'welfare reforms'

The September quarter benefit statistics have just been released. Ruth Dyson is being very quiet. I have a issued two statements below.

INVALID'S BENEFIT - ANOTHER BLOW-OUT
Thursday, 23 October, 2008

Just released Ministry of Social Development figures show a large rise in Invalid Benefit recipients.

"The previous Minister of Social Development, David Benson-Pope, assured the public more than once that the growth in this benefit was slowing. Yet the numbers have risen from 78, 268 to 83, 618 in the year to September 2008 - a 7 percent rise. In fact, this is the biggest single-year increase since Labour has been in government, " welfare commentator , Lindsay Mitchell, said in response to the news.

"Their much touted plans for reducing the numbers reliant on an invalid's benefit have made no impression. What we are seeing is further evidence of 'welfare reforms' that have failed."

DPB NUMBERS ON THE RISE AGAIN
Thursday, October 23, 2008

Newly released figures from the Ministry of Social Development show that over the past year numbers on the DPB have climbed from 96,673 to 98,473 - a rise of 1,800.

Welfare commentator Lindsay Mitchell is not surprised. "I have predicted that the Labour's so-called reforms would run out of steam once those most likely to take up the In Work payment had moved into paid employment."

"What we are now seeing with the DPB is growth in the young uptake, continual gradual growth in Pacific and Maori uptake and in the numbers of women who have children aged 14 and older. Treasury are not forecasting falling numbers either."

"Labour missed a golden opportunity to do something bold with this benefit. From its peak the United States managed to decrease numbers on their equivalent benefit by 70 percent during the prolonged period of good economic growth and low unemployment. Since 1999 Labour have managed a mere 10 percent reduction."

"Let's hope that the next government has a really hard look at what the benefit system is doing to young women and their children by continuing to offer an welfare lifestyle which commonly leads to so much lost potential."