Nats pledge to extend welfare service

Programme has had good results

National plans to extend its youth welfare service to all beneficiaries under 20.

The Government’s flagship youth-welfare programme has made significant inroads toward lifting educational achievement, and reducing benefit dependency.

Social Development Minister Paula Bennett made the election promise yesterday to extend the programme to an extra 5700 teens who were receiving a benefit.

The cost of extending the programme would be ‘‘between $10 million and $15m’’.

The programme

involves providers working directly with about 3000 16-17-year-olds who are on benefits, or unemployed and not receiving any education or training.

Among its goals is for youth to ‘‘not be on a benefit or receive a custodial sentence’’ for three months after the end of their school year or training course.

The young people involved in the welfare programme must participate in education, training or work-based learning and budgeting, and are given little control of their benefit.

Bennett’s announcement follows a report released by the Ministry of Social Development last month. It showed 16 and 17-year-olds on a benefit accounted for 70 per cent of the ministry’s future welfare liability.

By June 30 last year, that welfare liability was $76.5 billion, $7.4b lower than forecast, with $4.4b of the savings directly related to the reforms.

As of May, 45.8 per cent of young people who left the programme were not on a benefit three months later.

Fewer young parents were also on a benefit, with numbers falling from about 4800 in December 2009 to 2600 in May this year.

‘‘This approach is working well and that’s why we are going to extend it to 19-year-old sole parents, and to many other 18 and 19-year-old beneficiaries who need more support or who are at risk of long-term welfare dependence,’’ Bennett said.

‘‘Many 18 and 19-year-olds coming into Work and Income need more than job search assistance – they need help to get their lives on track, manage their money and pay the bills.

‘‘National supports people in need but expects them to do every- thing they can to get back on their feet when they are able.’’

Under the new policy, Work and Income would assess all under-20s who were seeking a benefit.

Those identified as having ‘‘complex needs’’ would be referred to a youth service provider, where they would receive intensive support and guidance, together with budgeting support and the use of a payment card.