Time to make welfare work

So many Dunedinites ask me this simple question: if unemployment is near record lows, why are so many people receiving Jobseeker support? It’s a good question.

Despite an extremely tight labour market with record job vacancies, there are over 50,000 more people on the Jobseeker benefit than when National left office. Of particular concern are the 34,000 Jobseekers who are under the age of 25, an increase of 49% in the last five years.

In the southern region there are 5136 people on Jobseeker support for longer than 1 year, an increase of 21% since Labour came to office.

This is despite employers crying out for workers in just about every sector and skill level.

Research shows the longer a young person remains on the benefit, the lower their chances of finding employment and the more likely they are to suffer poor social and economic outcomes.

If someone under the age of 20 goes on a benefit, they will spend an average of 12 years of their working lives on welfare, risking the social and economic costs that come with welfare dependency.

Labour talks a good game but isn’t helping those who need it the most.

We need a new approach to support young people off welfare and into work.

National won’t pay for what’s not working, so if the Government can’t make headway with young Jobseekers, National will find community providers who can.

National’s recently announced Welfare that Works policy has three main components:

 - Community providers will be contracted to provide 18 to 24-year-old Jobseekers with a dedicated Job Coach to help get them into work.

 - Jobseekers will receive more support, with a proper assessment of their barriers to finding work, and an individual job plan to address them.

 - Long-term under 25 Jobseekers who get into work and stay off benefit for 12 months will receive a $1000 bonus.

Those who fail to follow their plan will face sanctions, such as money management or benefit reductions.

I expect Labour will trot out their usual lines about beneficiary bashing because of sanctions for non-compliance, or claim that some are just too hard to help.

I reckon the worst beneficiary bashing is leaving our young to languish on a benefit for an extended period.

Everyone deserves the opportunity to make the most of themselves, and a job is vital to achieving that.

National won’t give up on our young.