Monetary incentive for staying in work or moving regions

Prime Minister John Key. Photo / Brett Phibbs

National has announced further steps to try to reduce benefit numbers by 25 per cent, including paying more people to move to other regions for jobs and bonus payments for those who stay in a job for a certain period of time.

Paula Bennett and Prime Minister John Key set out the new policy yesterday morning, including a trial of incentive payments of about $1000 for beneficiaries to stay in one job for a certain period of time.

Ms Bennett said research had shown there were "touchpoints" for people going from work back onto a benefit - at six months and again at 12-14 months.

"We would look at a payment for them that would be almost an incentive to stay in work that gets them over that hump of when they're most likely to fall out."

She said it would first be trialled on those who went off and on benefits regularly.

National will also extend a current scheme to pay people about $3000 if they move to Christchurch to take a new job into other regions. About 350 beneficiaries had taken up the Christchurch offer and moved to the region, most in construction.

Ms Bennett said that could apply to regions such as Southland where unemployment was relatively low compared to other regions.

National has set aside $15 million a year to pay for the extra measures.

Ms Bennett has set a new target of getting benefit numbers from 295,000 to 220,000 by 2017 - a 25 per cent drop. She is also looking for a 40 per cent drop in youth on benefits - getting 21,000 more young people off the benefit.

Ms Bennett said that was a bold target "but 53,000 young people on welfare is too many for a country with prospects like ours".

National's benefit boast
• Aims to reduce benefit numbers from 295,000 to 220,000 people by 2017.
• Includes getting 21,000 more young people off the benefit.
• $1000 incentive for beneficiaries to stay in one job.
• $15 million set aside a year to pay for the extra measures.