Media Release

Media Release

DPB FOR A DECADE OR MORE
Tuesday, September 25, 2007

National MP Judith Collins today released figures showing the Ministry of Social Development expects almost three quarters of today's teenage DPB beneficiaries to still be on a benefit in ten years time.

Welfare commentator Lindsay Mitchell says this is no surprise. "In 2001 when acting Social Development Minister, Steve Maharey was reassuring the public that the average stay on the DPB was only three and a half years, and so it made sense to remove the work-testing, my own research showed the total average time recipients were spending on the DPB was closer to seven years. This anomaly came about because the Ministry only counted each continuous stay despite many recipients having multiple stints on this benefit."

"Additionally, at least half of the current recipients started on welfare as a teenager. It is a trap for uneducated and unskilled teenagers many of whom can achieve a higher income on the DPB than in paid work. Maternal youth however is an indicator for subsequent social problems including child abuse and neglect. Additionally, having a guaranteed source of income also makes young mothers vulnerable to exploitive and abusive males who do not want the inconvenience of having to financially support a family or household."

"If we are to improve the future outlook for low socio-economic women and their children two things must happen. Any domestic purposes income support must be made strictly temporary and it should not be available to teenagers. The DPB 'industry' needs dismantling."