Tuesday, November 01, 2011

National's leaked welfare policy

NewstalkZB has me saying that National's leaked goal of moving 46,000 off a benefit is "unambitious". I suggested they could double that target. Not sure if they are using other soundbites from the comments I made on request (with very limited information) but here is my reasoning.

People will naturally leave the unemployment benefit as the economy improves. They already are. That's what happened between 2004 and 2007 when the total on the dole dropped by 45,000. So National could meet their three year target without any focus or improvement on the other benefits.

I also said that at $9000 a job, that's very expensive from the taxpayer's point of view. Especially if an improving economy can achieve the same reduction without the extra expenditure.

And it's all very well to talk about moving people off welfare but the arguably more important goal is to stop them moving on. For example of all the babies born in 2010 23 percent were relying on welfare by the end of the year. People going on the DPB with a newborn will frequently stay there for many years - unlike those who typically have a much shorter stay on the unemployment benefit.


S.Beast said...

Quote: "Jobseekers Support recipients would be expected to look for full or part time work.

Sole parents would be required to look for part time work"

So...no change then?

S. Beast said...

The Enterprise Grant and Allowance scheme would allow many off a benefit and into their own business and can also be used to expand an exsisting business so a full time income can be derived. This would easily be covered by the $9,000.

S. Beast said...

Instead I fear the money will go into more dumbed down phamplets and administrative juggling.

Kiwiwit said...

The economy is not going to get better so they can't count on that. The Eurozone disaster and the equally dire economic situation in the US will ensure the world economy remains depressed for years to come. Add to this the fact that our commodity prices can only go down from their current all-time high and it is obvious that NZ is facing a very dire economic future indeed.

Key and English would have us believe we will achieve 4% GDP growth by 2013. Mark my words, it will not happen.