Bennett spells out new benefit rules

Beneficiaries who are reviewed after a year on an unemployment benefit will not lose that assistance if they cannot get a job, Social Development and Employment Minister Paula Bennett says.

The Government is looking at bringing in measures next year that tighten benefit rules.

These include work-testing for domestic purpose beneficiaries whose youngest child has turned 6, compulsory budgeting advice sessions for beneficiaries who claim frequent grants and part-time work obligations for some sickness and invalid beneficiaries.

People on the unemployment benefit will have to reapply after being on it for a year.

"It's only the unemployment benefit and that's because it is temporary," Ms Bennett said. "It's for those who are unable to find work at that time.

"We've got a strong interest in not seeing those people fall into long-term welfare dependency."

The Cabinet was yet to make decisions but the changes were likely to go ahead.

"Our manifesto said that people on the unemployment benefit for more than a year would be required to re-apply for their benefit and undergo a comprehensive work assessment.

"What we are looking at is in the weeks leading up to their one-year anniversary, we would write to them and tell them they had to come in and see their case manager and go through a comprehensive work assessment and reapply.

"If they don't, their benefit will be cancelled at the 12-month point but they could go through the process and reapply again."

She said people who went through the process but did not find a job would continue receiving the benefit.

"Absolutely. There are people at the moment that are trying very hard to find jobs and the jobs aren't available for them, so that's exactly who the system is set up to help.

"What we will probably be a bit tougher on is those that are not actively seeking work and there will be more obligations on them."

Decisions about whether people on the benefit longer than a year would go through the same process were yet to be made.

"I also have to be cognisant of the work load of case managers. We are also going to be part-time work testing DPB ... well there's around 40,000 women and men on the DPB that have a youngest child older than 6 years.

"So this is going to be staged ... I can't have 40,000 DPBs plus 60,000 unemployment benefit all on the same day having to be case managed."

In September 6654 people had been on the unemployment benefit more than a year and 816 more than five years. At the end of November, 58,541 working-aged people were receiving the benefit.

Wellington People's Centre spokeswoman Kay Bereton said the policy was a "kick in the guts" for unemployed people at Christmas time.

"All this policy would do is create a desperate underclass competing for scant jobs and doing anything they can to survive."

Ms Bennett said the criticism could not be further from the truth.

The Government would ensure there was training and assistance to help people into work. "We do want to set people up to succeed."

- NZPA