Bennett: Welfare reform is 'scary'

Social Development Minister Paula Bennett and Prime Minister John Key announcing the Government's welfare reforms at Parliament. Photo / Mark Mitchell

Social welfare minister Paula Bennett is trying to dampen fear about her welfare reforms, saying she knows it is "bloody scary" having a National government in charge of welfare reforms.

Ms Bennett was speaking at the Welfare & Social Sector Policy and Reform about the ministerial panel considering broad-sweeping changes to the system, based on recommendations by the Welfare Working Group.

One of those at the conference was anxious that the reform would be similar to Ruth Richardson's benefit slashing budget in the 1990s.

Ms Bennett said it would balance out work requirements on beneficiaries with support where there was genuine need.

"I get that change is scary. I get that a National minister looking at welfare and saying 'I want to do something differently' is bloody scary. But the other option is to do nothing and I won't do that."

Ms Bennett said about 63 per cent of all beneficiaries did not have work testing or work requirements on them. Changes the government had already made had made a difference. The number of those coming off the DPB since part-time work requirements were introduced had increased by 22 per cent over the past year - to more than 3,500 people.

About 5000 were now no longer on the dole because of the new requirement to reapply after a year, either because they did not reapply, had found jobs or were no longer eligible.

"It was an interesting exercise that tells you 5,000 people who were on an Unemployment Benefit didn't actually need it and probably shouldn't have had it."

A ministerial group made up of seven senior National Party ministers will consider which reforms suggested by the Welfare Working Group would become policy. National will campaign on those reforms for the election.

Maori Party co-leader Tariana Turia, the associate social development minister, has also since been asked to join the ministerial group but was yet to decide whether she would do so. She said it might not be the best use of her time and if she did become part of the panel, she would refuse to accept any confidentiality requirements that prevented her from criticising the reforms.

"They have no right to demand that from me and I wouldn't be prepared to accept that. The only issue we have to agree with the government on is Budget and supply. There are many things we have disagreed on and I imagine there will be things in the welfare reforms that we disagree on."

She agreed with at least one of the principles set out by the working group.

"I certainly support people being able to work if they can. I totally support that, giving people self-belief. What we have to do is have an economy and opportunities to work. You can't just take people off a benefit if there's no jobs. So I'm a firm believer in work as a way forward, I've got a strong work ethic myself."

She would have the chance to put her views to the ministerial group on her disability and whanau ora portfolios, regardless of whether she was formally part of the group.