Welfare reforms leave a lot to be desired

new-zealand-labour-party

Mon May 07 2012 12:00:00 GMT+1200 (New Zealand Standard Time)

Welfare reforms leave a lot to be desired

Monday, 7 May 2012, 5:52 pm
Press Release: New Zealand Labour Party

7 May 2012 MEDIA STATEMENT

The Government’s announcement today that it is to ‘invest’ more in support for young people will come as a surprise to the thousands of 18 and 19 year olds that will not be eligible for training or employment assistance under the new regime, Labour’s Social Development spokesperson Jacinda Ardern says.

“Paula Bennett might have found some extra money for her revamped scheme, but what she’s not saying is where that extra money is coming from, or why it is costing more to provide a service for fewer people.

“There are 87,000 young people currently looking for work, training and education opportunities. These latest reforms mean that 60 per cent of those now getting help will be ineligible. That makes no sense.

“Another concern is around the bonuses being paid to service providers when their ‘charges’ reach certain milestones. You can bet that will mean some of our most vulnerable kids won’t be helped because providers won’t want to lose out. Organisation will be asking the question 'can I afford to work with you.'

“Those same providers are being given what the Minister calls ‘unprecedented flexibility’ to get these young people into education or training. That same flexibility has seen similar services in Australia and the UK come under investigation for gaming the system, and in some cases, fraud.

“Everyone wants to see young people – be they unemployed solo parents or graduates - able to access all the support they need to move into work, but ultimately if they Government really wants to fix welfare, it must fix the economy,” Jacinda Ardern said.
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