A new board has been appointed to oversee welfare reforms planned with Work and Income and to report to key ministers on Work and Income's performance.
The Government would invest $1.1 million in the six-member board over the next four years.
Social Development Minister Paula Bennett today announced the new Work and Income board members would oversee an "investment approach to welfare."
She said members of the board had experience in the insurance and finance industries which already use investment approaches to reduce future liability.
"The cost of today's total number of beneficiaries is estimated at $45 billion. It makes good economic and social sense to provide targeted support up front to get more people into work sooner," said Ms Bennett.