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Welfare Conditionality IN New Zealand

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Presentation on theme: "Welfare Conditionality IN New Zealand"— Presentation transcript:

1 Welfare Conditionality IN New Zealand
Image sourced from Welfare Conditionality IN New Zealand Assoc Prof Louise Humpage University of Auckland Presented at ‘International Symposium on Welfare Conditionality’ York University, 30 Jan-2 Feb 2019

2 National party-led government 2008-2017
Driven by neo-conservative agendas in many areas (social security, child welfare, criminal justice, education etc) - although also finally acknowledged child poverty and increased benefits for income support recipients with children by $25 per week in 2016 Since 2013, driven by a ‘social investment’ model that uses insurance- style models of risk prediction to measure the cost that income support recipients (and others) represent to government/society Historical Ministry of Social Development data used to predict the life-time risk (i.e. financial cost) of being on a benefit Youth and sole parents calculated as having the highest predicted costs thus are the target for significant and new policy interventions ‘Risk factors’ reflect a neo-conservative view of the causes of ‘vulnerability’ and ‘welfare dependency’

3 Sourced from http://www. treasury. govt
Indicators = Supported by benefits since birth; CYF finding of neglect/ abuse; Parent in prison; Mother with no quals You can look at in detail here but being on a benefit is regarded as a risk factor and they calculate the cost of this

4 youth Since 2012, the Youth Service targets resources at 16 to 17- year-olds who are or at risk of not being in employment, education or training (NEET) BUT Those receiving Youth Payment (16-17 year olds with family breakdown) and Young Parent Payment (16-19 year olds with dependent children) placed under compulsory income management = Rent/utilities paid directly by contracted provider In-Hand Allowance of up to $50pw Rest of benefit goes on an electronic Payment Card to use at approved shops – cannot buy alcohol or cigarettes or to receive cash Incentives and sanctions linked to educational, budgeting and parenting obligations aim to encourage compliance; conditions for leaving income management extremely high So young people estimated ‘lifetime liability’ as $239,000 – because if on a benefit before adult then likely to stay on benefit a long time

5 sole parents/parents Part-time work obligations when youngest child turns 3 or age 1 if the child was born while parent in receipt of a benefit Female sole parents and their child-bearing age daughters encouraged to take up free long-term contraception Sole parents who don’t identify the other parent of their child are sanctioned by $22+ per week - 97 percent of those sanctioned are women, 52 percent are Maori All parents receiving income support benefit risk 50% sanction (after 2 warnings) if they do not meet ‘social obligations’ = dependent children must: Attend Early Childhood Education from age 3 to school start for at least 15 hours per week Attend school from age 5 or 6 Enrol in primary health care Complete core WellChild checks (decided against including vaccination because personal choice) In addition, sole parents have been identified as a high cost – some specific policies for them but also a broader focus on parents which assumes a cultural deficit You can imagine what our feminists might say about this

6 unemployed Main benefit categories were reformed in 2013 to place a great focus on work: Job Seeker Support recipients: Cannot apply for a benefit until they have completed a work-related seminar Have to reapply for their benefit every year Must accept any ‘suitable’ work offered Must show evidence of looking for work for 30 hrs per week or face 50% cuts in benefit (for parents) or suspension for 13 weeks (for others) May be subject to a ‘pre-employment’ drug test Sourced from Baillie (2014) New Zealand’s welfare reforms: National’s response to “welfare dependency”

7 Meanwhile …. Dec 2018 benefit data shows current levels of welfare benefits and Working for Families tax credits are inadequate Hardship grants increased by 40% over the previous December quarter (despite fewer sanctions over same period) Food banks also overwhelmed by increased need compared to the Christmas period


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