All 11 current benefits will be streamlined into three new benefits if National wins at the election on November 26. National planned similar reforms in 2005 but did not win the election and it has taken six years to get around to the changes.
There will be an increased emphasis on getting people off benefits and into part-time or full-time work. All parents on benefits, regardless of which benefit they are on, can also be expected to participate in work preparation, training, parenting or budgeting programmes.
This will be backed by sanctions for non-compliance.
Social Development Minister Paula Bennett said it was the Government's intention to comprehensively reform the benefit system.
"It's not socially or financially sustainable to continue to spend $8 billion a year to pay benefits to 12% of working-age New Zealanders."
There were clear links between welfare, poverty and poor health, she said. Evidence showed children were better off when their parents were in work, not on welfare.
People now on unemployment and sickness benefits and those on widows, women alone and the DPB with children 14 and over, or with no children, would be included in the new Jobseeker Support benefit.
Ms Bennett said the majority on Jobseeker Support would be capable of taking work as it became available.
DPB parents and widows with children 5 to 13 and DPB parents and widows with children under 5 would be in the new Sole Parent Support benefit.
Single parents who had another baby while on a benefit would have to look for work when that baby turned 1.
Those on the invalid's benefit and those caring for the sick and infirm would go on to the Supported Living Payment.
The changes were expected to result in up to 46,000 people off welfare and another 11,000 working part-time in four years, Ms Bennett said.
That was on top of the pre-election fiscal update forecast of 20,000 fewer on welfare by 2016.
"Given we've reduced the unemployment benefit by 10,000 in the last year alone, I'm confident we can continue to get many more off welfare into work."
The minister said the new policy would cost about $130 million a year for the first four years, made up of new and reallocated funding for more child care, extra staff and IT costs. Savings of $1 billion a year were expected.
Green Party co-leader Metiria Turei was critical of the policy and said the way to reduce welfare numbers was through a strong economy and good jobs.
"Importing hard right welfare solutions that pay people to harass beneficiaries into low-paid jobs is not the answer to a better or brighter future."
National seemed to spend far more of its time looking for ways to bully beneficiaries than worrying about creating jobs, she said.
