The Government is signalling a tougher stance on benefits as it attempts to bring what it says is the increasing cost of welfare under control.
In his opening speech to Parliament today, Prime Minister John Key said welfare reform was essential to reduce long-term benefit dependency and to ease the taxpayer burden of the welfare bill, which was expected to increase rapidly in the coming decades.
"We owe it to our children, the taxpayers of the future, to bring welfare rolls back under control," he said.
Changes would include tougher criteria and testing for sickness benefits, stricter re-application rules "to prevent people languishing" on the unemployment benefit between jobs, and increased work and training expectations for those on the domestic purposes benefit.
While acknowledging that some people would realistically never be able to work, Mr Key said benefits should provide only temporary support until people were able to return to work.
"Our benefit reforms will therefore be squarely focused on helping people get back to work as soon as possible, and ensuring that they do so," Mr Key said.
"These welfare reforms will have positive effects not just for beneficiaries themselves but for the sustainability of the welfare system."
However, taxpayers would continue to face an increasing welfare bill over the coming decades despite changes to the welfare system.
Mr Key singled out the sickness benefit, which had been "allowed to grow out of control" in recent years. The number of sickness beneficiaries was expected to increase by as much as 50 percent over the next 15 years.
An expert working group would be set up to recommend ways to reduce long-term welfare dependency and the future taxpayer cost of welfare, he said.
Mr Key also indicated social services were in need of a shake-up to combat child abuse, family violence, poor educational results and crime, particularly in Maori and Pacific communities.
"I have said it before, and I'll say it again today: I worry that there are signs of an emerging underclass in New Zealand," he said.
Social services spending was not delivering its intended results, and the Government would look to improve its services by reducing bureaucracy and improving co-operation between different organisations and programmes.
Mr Key also reiterated his commitment to the Whanau Ora policy, which aims to improve the Government's approach to assisting families in need.
The Government would carefully consider the recommendations of the Whanau Ora taskforce, which was due to deliver its report shortly.
"The status quo isn't working, hence the Government's willingness to consider new ideas."
