The provision of $287.5 million over the next four years in this month’s Budget is an example of spending to save.
It will fund the first phase of the Government’s welfare reforms to help more New Zealanders into work, Social Development Minister Paula Bennett says.
This includes $81.5 million of additional up-front funding, with the remainder reprioritised funding from within Social Development.
The second phase of reforms will be funded in Budget 2013. The entire welfare package is expected to cost at least $520 million and it will save $1 billion over four years.
“Added to the current $7.6 billion annual cost of welfare, this extra investment provides support – such as childcare and staff – that is vital to the reforms.
”The Government’s welfare changes require a significant up-front financial support. We’ve made a commitment to provide that investment to ensure fewer people are on welfare long term.
“The first phase of spending is focused on better supports that will help more people out of the welfare trap,” Mrs Bennett says.
Budget 2012 will include:
- $80 million over four years for Early Childhood Education childcare and the Guaranteed Childcare Assistance Payment.
- $55.1 million over four years for 155 dedicated Work and Income staff to support Jobseekers and sole parents into work.
- $148.8 million over four years for youth services including wrap-around support.
“Support for young people is central to the wider welfare reforms,” Mrs Bennett says.
“Funding for youth services will be targeted at budgeting and parenting courses, milestone payments to providers and wrap-around support as well as an extra incentive payment to young people.
“This also includes $77.6 million to support the roughly 14,000 disengaged 16- and 17-year olds, to move them into education or training.”
Of the total $148.8 million for youth services, there is $134.7 million for Youth Service providers. This is an increase of $75.9 million over four years for providers above current funding levels.
“For the first time, the Ministry of Education will share information with the Ministry of Social Development to track and pick up these young people.
“Youth Providers will have unprecedented flexibility to work with disengaged or unemployed young people and teen parents to get them into education, attaining NCEA Level 2, or in training.”
No-one ever said saving people from welfare dependency would be cheap but the long-term benefits outweigh the short-term costs.
Homepaddock 
The unfortunate thing is once the ‘short term costs’ become a permanent fixture for the entitled, in a few years we will be spending yet another tranche to fix those issues.
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If there was any doubt that National is a left wing party it is now forever dispelled.
The answer to everything BIGGER GOVERNMENT
and contraceptives.
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PM – fewer long-term beneficiaries will reduce costs.
Andrei – have you got a better idea than free contraceptives to reduce the number of children born into state dependency?
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If we are going to persist with the DPB then any attempt to reduce the circumstamces that lead people to rely on it – contraception, childcare – get my support. What the two commentors aren’t factoring in is the deterrent aspect. Once being on a benefit has as many obligations as being a student or employee many will avoid it. BUT I certainly have reservations along the same lines….I am never comfortable supporting more govt spending.
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Free contraceptives will not reduce the number of children born into state dependency by one.
There are perverse incentives to become a solo mother and that is a fact
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HP, I fully endorse Lindsay’s, “I am never comfortable supporting more govt spending”. The deterrent aspect may well work for some in the distant future, but as I implied more than likely will not for most.
Once the funding is in place, at extra costs to the taxpayer, history proves that future governments will not reduce the tax take.
Nothing but a bloody vote buying exercise, being seen to be doing something, anything. Had even thought it might be a slightly skewed idea to stave off bleeding Nat votes to the god-botherer lurking on the right now that ACT is awaiting the final rights.
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I share the desire for lower government spending, but sometimes you have to spend more now to save some later. If this policy works there will be fewer people on benefits and more in work.
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This isn’t about saving money later – it is about channeling money to planned parenthood via the social welfare budget and disguising it.
National is no different to Labour under Helen Clark, = the people who support it do it for tribal reasons and blinker their eyes to the fact it is a left wing authoritarian party who feed taxpayer money to special interest groups
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Planned parenthood – I meant family planning, same philosophies though
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Great post.
In every country, out-of-control government spending has become the #1 enemy of the citizenry.
One of the truer truisms, most recently said by Dennis Prager: “The bigger the government, the smaller the individual.”
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Keep in mind this is extra spending is in this area but in context of a zero Budget comes from savings elsewhere not an increase in overall spending.
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