Humdinger of a political argument - The Centre for Independent Studies
Donate today!
Your support will help build a better future.
Your Donation at WorkDonate Now

Humdinger of a political argument

A storm is brewing in New Zealand, casting a frostier-than-usual shroud over the nation’s capital. Last week in Wellington, the Key government’s Welfare Working Group hosted a two-day meeting of welfare experts, researchers and advocates.

Much of the focus was on the government’s Social Assistance (Future Focus) Bill, currently before Parliament. From September, single parents on benefits will be required to look for part-time work when their children reach school age, bringing New Zealand’s rules in line with Australia and the United Kingdom. Currently, single parents receive the Domestic Purposes Benefit until their youngest child is 18.

In March, 110,000 working-age people (4% of the working age population) were on this payment. Forty percent of these recipients had a child seven years or older and will be subject to the tougher rules.

Minister for Social Development Paula Bennett has made it quite clear that this type of change fits in with her vision for reform. Bennett argues that the number of long-term welfare beneficiaries in New Zealand must be cut for the system to remain sustainable into the future.

However, many of the attendees at the Wellington meeting made it equally clear that they don’t share Bennett’s vision. They argue that there is not enough childcare available and that it is unfair to push single parents into work unless they can find jobs that suit them. Some suggested the bill be put on hold until the Welfare Working Group reports its findings to the government later this year.

It seems unlikely that Bennett will back down, though.

International evidence suggests that getting single parents into work when their children reach school age, or even earlier, not only reduces welfare dependence but also relative poverty. Work, not welfare, is good for families – as well as for the wider community.
But many in New Zealand’s welfare sector have yet to come around to this view.

As one New Zealand Herald columnist quipped, it is shaping up to be one ‘humdinger of a political argument.’

Jessica Brown is a Policy Analyst at The Centre for Independent Studies. She spoke at the Welfare Working Group forum in Wellington last week.