Social Development Minister Paula Bennett's Social Security (Benefit Categories and Work focus) Amendment Bill will reduce the number of benefit categories, make benefits more work-focused, introduce expectations for partners of beneficiaries and make beneficiaries prepare for work.
From October this year, sole parents will have to be available for part-time work when their youngest child reaches school-age, and when the youngest child turns 14 the parent must be available for full-time work.
The new benefit categories included in this bill are: jobseeker support for those actively seeking and available for work, sole parent support for sole parents with children under 14 years, and supported living payment for people significantly restricted by sickness, injury or disability.
Those currently on the sickness benefit will be included in jobseeker support, and will be assessed to determine whether they would have to look for part-time or full-time work.
Ms Bennett said jobseeker support will include those capable of work, and those who are temporarily exempt but will soon be able to work.
Ms Bennett says these changes will result in 135,000 people on jobseeker support and 50,000 on the unemployment benefit.
A 12-month reapplication for the unemployment benefit will apply to all those on the new jobseeker benefit.
The changes will cost the Government $520 million and save the Government $400m a year.
- By Kate Shuttleworth of APNZ
