National eyes invalids as welfare returns to agenda

Welfare reform is in the Government's sights again but Labour say it's too soon given rising numbers on unemployment benefits.

Finance Minister Bill English said yesterday that as the recession eased, the planned reform the Government put on hold when the severe downturn hit would begin. He also said invalids might be targeted.

National's welfare policy announced in August last year included: introducing more frequent assessments for sickness beneficiaries; forcing long-term unemployed (those with more than one year on the dole) to find work; and requiring solo parents to seek part-time work once their youngest child is 6.

National said it would increase the amount of money beneficiaries could earn - from $80 to $100 - without losing any of their benefit. It would also relax the abatement regime for beneficiaries with a part-time job - current beneficiaries lose 70c in every dollar they earn over $80 a week. National would raise that to $100 to encourage beneficiaries to work.

"We made a number of undertakings before the election," Mr English said on TVNZ's Q & A.

"... and I'm working through material now with [Social Development and Employment Minister] Paula Bennett to take to Cabinet to put in place the promises we made."

Labour deputy leader Annette King said the Government was giving mixed messages about the state of the economy.

"Unless we really are out of this recession trying to force people into work at this time is going to be very, very difficult," she said.

"If you were saying we are now in a position where unemployment was going to be dropping every week - not increasing - then you could say there will be opportunities and training chances for people on benefits but that's not what Mr English is saying."

Mr English also spoke about people on the invalid's benefit. On September 30, 85,015 people received invalid benefits and 56,384 sickness benefits.

"Effectively we have [more than] 80,000 people where officially the welfare system has said they won't work again. We think that's a waste of those people and of their potential so we want to look at how to encourage more people off those longer-term benefits."

Mr English said unemployment forecasts might be better than predicted, likely 7 per cent rather than 8 per cent. The rate was 6 per cent now. - NZPA