Ian McKelvie: Budget is one for our times

Ian McKelvie (National) .May 2014 Wanganui Chronicle Photograph by Lewis Gardner

LAST Thursday, I sat in Parliament as Finance Minister Bill English presented his seventh Budget.

It set out the next steps in the National Government's economic programme and demonstrated our focus on helping families.

New Zealand has come through significant challenges and is now a more confident and resilient country than it was seven years ago.

Careful management of public spending has gone hand-in-hand with investment in public services, while the economy has risen from deep recession to solid, 3 per cent growth.

However, Budget 2015 is definitely about looking forward, not looking back. It is a responsible and supportive Budget from a responsible and supportive government.

In particular, in this Budget we are providing further support for the lowest-income families and children in New Zealand.

Over many years, beneficiary family incomes have hardly changed in real terms, while those for working families have increased. On one hand, this gap creates a strong incentive to move from welfare into work, but the effect on children when their family's resources fall behind those of other households is a concern.

Our $790 million child hardship package is designed to assist our most deprived families and it will make a difference to those who receive it, while at the same time respecting the taxpayers who pay for it.

The increase of $25 after tax per week is the first raise in benefit payments for 43 years (apart from inflation adjustments) and it will directly help 110,000 beneficiary families who are raising 190,000 children.

As part of the child hardship package, we are also strengthening work expectations for parents on a benefit.

From April 1 next year, most sole parents and partners of beneficiaries will have to be available for part-time work when their youngest child turns 3, rather than 5, as it is now.

In addition, all beneficiaries with part-time work obligations will be expected to find work for 20 hours a week rather than 15 hours a week under the current requirements.

Part-time work brings more income into a family, and is a stepping stone to full-time work and to going off a benefit altogether.

As a government, we have worked hard to effect positive change in regards to our social welfare system, and this increase to benefit rates comes after widespread reform.

The system has changed to one that better recognises and supports people's work potential and it focuses on what people can do to achieve a better future for themselves and their families.

We are confident that the reforms, together with the new budget spending and initiatives, will have a positive impact on the lives of beneficiary families and children, rather than contribute to further dependence.

Budget 2015 is a proactive, supportive and responsible Budget that I'm proud to be a part of.