Government won't lift benefits before next election

May 7, 2019

Despite the welfare advisory group’s recommendation, the Government has ruled out raising core benefits before the next election. (Source: Other)

Core benefits will not be raised before the next election, despite the welfare advisory group's recommendation it be lifted immediately. 

It comes after criticism the Government's three pre-budget announcements did not go far enough, after a welfare advisory group released 42 recommendations , which included an immediate lift to base benefit levels. 

The pre-budget announcement saw funds at this month's budget for up to 263 front-line staff at Work and Income, and from April 2020, the scrapping of benefit penalties on parents who do not name the other parent on their child's birth certificate.

It will also allow low-income workers to earn more before their benefit payments are reduced.

On TVNZ1's Q+A, Social Development Minister Carmel Sepuloni said an increase may be considered in phase two of the Government's welfare reform, but it would take three to five years to roll out the plan.

"We are committed to an overhaul but we won’t be raising benefits at this election."

The advisory group recommended raising core benefits from between 12 to 47 per cent.

Ms Sepuloni said three of the 42 recommendations were announced as pre-budget policies, "but when you do an analysis of the recommendations there's about 15 or 16 where we've already got work underway."

She said in regards to more announcements at the 2019 Budget, "you'll just have to wait".

However, Ms Sepuloni said there had to be a "phase two" to welfare reform, which entails "assessing what we're already doing, looking what can be one immediately, phase two - how we address some of the recommendations". 

"I would hope that New Zealanders out there, particularly those that rely on support from Ministry of Social Development will have faith and confidence that this government will do something to make their lives better," Ms Sepuloni said. 

Jack Tame interviews the Social Development Minister following the announcement of upcoming changes to welfare provisions. (Source: Other)

Last week, National welcomed the change to pay-thresholds for beneficiaries, but welfare spokesperson Louise Upston said the latest announcement "is another case of the Greens being promised action in their coalition agreement and receiving nothing when it comes to delivering on that agreement".

"This Government can't just keep kicking the can down the road when it comes to big decisions."

ACT's David Seymour did not agree with the threshold changes, saying it would be "less likely people move off welfare and into full-time work, further entrenching dependency".

He also said scrapping the benefit sanction to sole-parents would see taxpayers "assume greater responsibility for supporting children, rather than their fathers".

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