Tuesday, May 31, 2011

The Nat's "welfare crackdown" looks timid

Most journalists do not understand the statistics surrounding benefits. Here is an example of more mis-reporting and emotionalism on welfare;

The Prime Minister says the Government will forge ahead with some of the Welfare Working Group's recommendations, aimed at pushing 100,000 beneficiaries into work within a decade.


The target is to have 100,000 fewer people on benefits in 10 years. The pool of beneficiaries is far from static. People are constantly flowing in and out of it. 1/ The target would also include discouraging people from going onto benefits 2/ Many people leave a benefit for reasons other than to go to a paid job so 3/ the target does not rest on ' pushing' 100,000 people into work.

That is why, by the way, the target is far too low. Only a few years back, early 2008, there were 80,000 fewer people on benefits but the deeply entrenched dependency remained. Reform has to focus sharply on the long-term, inter-generational group.

The only recommendation he ruled out immediately yesterday was for solo mothers who had another child while on the benefit to return to work when that child was 14 weeks old.

But he would not rule out setting another age for that to happen - indicating the Government could be considering the group's second option of a return to work when the child was 1.



There is an obvious reason I don't need to spell out why one year is too long if a beneficiary is in the habit of producing babies to avoid work.

Work-test at the earliest opportunity. Then the disincentive to add children is strongest. 14 weeks was picked because it falls in line with what most working parents face. 14 weeks paid parental leave and then a return to work or make their own arrangements. If work and childcare is available why should sole parents be any different?

He said significant reform of the system would be steered by a group of high-ranked ministers and the proposed reforms set out before the election.


I am more hopeful about that statement only because it indicates that Key understands he will need a group to push through reforms. One person alone will have a great deal of difficulty dealing with the opposition (remember what happened to Katherine Rich). What opposition?

Auckland Poverty Action Group spokeswoman Sue Bradford said the line-up of high-powered ministers charged with the reforms showed National planned significant change.

"They are clearly going to do a 'beneficiaries and bludgers' dog-whistle campaign. And we will fight them on it the whole way. We have to because we can't afford to have those recommendations in place." She said it amounted to semi-privatisation of the welfare system and would worsen the plight of children who were already struggling.


The Welfare Justice Group is a collection of many named and unnamed welfare advocates who will pull out all stops to turn the public against reforms. When churches and so-called child welfare advocates start crying foul the impact cannot be under-estimated. They think they are well-motivated. They think they have God on their side. But their short-term easy remedies for reducing the poverty of beneficiaries will only aggravate the problem of welfare dependence further. Their's is the recipe we have been following for four decades.

The Budget set aside $40 million for the reforms, likely to be the system's largest shakeup since it began in 1938.


Dear me. Already spending money to save money? Looks like government business as usual. Oh, I suppose I could go along with a massive media campaign to tell New Zealanders that there will be no more DPB from April 1, 2012. Could you live with that?

3 comments:

Anonymous said...

Oh, I suppose I could go along with a massive media campaign to tell New Zealanders that there will be no more DPB from April 1, 2012. Could you live with that?

Now that's real reform at last. But why stop at the DPB?
Stop the lot! But even if we stopped every benefit today, NZ's economy is so fucked that we'd still have to borrow billions to get the government's books to balance!

Manolo said...

Oh, I suppose I could go along with a massive media campaign to tell New Zealanders that there will be no more DPB from April 1, 2012.

That would be outrageous (and unacceptable) extremism! :-)

Anonymous said...

The 55year old I mentioned in an earlier post today told me he had his request for new glasses confirmed by WINZ.$780 for the frames and $1600 all up paid back at $7 a week.
The mind boggles and i wonder if I'm in the wrong game?

Dirk