Labour hails decrease in people receiving benefits

A small fall in the number of beneficiaries has been hailed by Labour as an endorsement of its welfare policies.

New benefit figures as at June 30 show the number of working-age people getting benefits - excluding national superannuitants - fell 1492 to 290,466 compared with March 2005.

But the numbers look better compared with June 2000, when 364,416 people were getting benefits, and June 2004, when the total was 309,360.

Social Development and Employment Minister Steve Maharey yesterday praised the performance, saying unemployment and domestic purposes benefit numbers had fallen in every region.

Speaking at the launch of new Work and Income regional plans, which aim to get more people into work, he said Labour had helped nearly 100,000 people get jobs and reduced poverty at the same time.

Mr Maharey said between Budget 2003 and Budget 2005 the fall in benefit numbers had cut forecast benefit spending by $3.3 billion.

Growth in sickness and invalid beneficiary numbers had been falling.

And he said the number of sole parents getting the DPB - 97,903 of the 105,647 in the latest figures - was at a 12-year low. The remaining 7744 recipients are single women and those caring for sick and infirm people.

National social welfare spokeswoman Judith Collins said despite Mr Maharey's "gleeful rhetoric", almost 300,000 working-age adults remained on benefits.

At the same time, many firms were short of staff.

She pointed out the Social Development Ministry had conceded that in March 2005, 60 per cent of firms reported difficulty finding skilled staff and 49 per cent difficulty getting unskilled staff.

A further 20 per cent reported labour shortages were a major constraint to their expansion.

"If ever there was a time when beneficiary numbers should have fallen to record lows, it is now."