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The welfare state is unsustainable economically, socially and morally.
Benefit numbers fall
The number of people receiving the Unemployment Benefit has dropped by 4,224 over the last month.
"That's the single biggest drop in the Unemployment Benefit since the recession began," says Social Development Minister Paula Bennett.
The number of people on all types of benefits has dropped by 10,816 over the same period.
Over half of that total number, relates to young people on benefits.
"It's really pleasing to see 5,595 young people came off a benefit in just the last month," says Ms Bennett.
"Young people have been among the hardest hit by the recession and initiatives like Job Ops and Community Max have proven vital in keeping young New Zealanders in work," says Ms Bennett.
3,636 position had been filled through Job Ops by the end of February, with 2,927 positions filled through Community Max
Work and Income has continued its work-first approach, using work brokers and its specialised recruitment service Job Connect to match people with jobs.
'Serious questions' over some benefits
The Government is preparing to ask some "serious questions" about invalid's and sickness benefits as the jobs crisis eases.
Social Development Minister Paula Bennett is flagging dramatic changes to the welfare system over the next few years as the Government has more room to drive through changes after the focus in its first 12 months being mainly on soaring unemployment.
"I think in the future how we approach welfare ... I do see that it may look quite different [including] quite a different way in which we approach things and help people to get well and get help and be more employable."
Tomorrow's Budget is expected to flag some of the changes, although more fundamental ones are likely to wait until a Welfare Reform Working Group reports back. It was set up to investigate whether the system needs radical change or just tinkering.
While the focus had been on unemployment numbers, meanwhile, they were starting to turn around and would "right themselves pretty much" over time.
"It's that invalid's benefit, sickness benefit, that we have to ask ourselves some pretty serious questions about and how and what we want that to look like in 10 years' time."
One of the issues was how agencies helped people to get well and back to work.
"All we do ... is pay them benefits and put them on training courses and hope they are going to get well.
"We are looking at different options at the moment and that is what the welfare working group are doing ... it could mean more [money] up front; spending more to get someone the operation they need, or more drug and alcohol rehabilitation."
"I've always believed in a causal link between benefits and the number of single mothers. We've got to change so that people don't become single mothers. For some, they become single mothers by accident, while for others it's a deliberate choice."
"We have to be careful with this claim of a causal link. When we are giving benefit to the single mother, we are not giving it to her, it's to the child. if you want to end child poverty, then you have to give benefit."