BUDGET 2012: $500m welfare reforms to save $1b
First phase of reforms to cost $287.5m, including $81.5m of new spending.
The government's welfare reforms will cost more than $500 million over four years but are expected to save $1 billion.
Social Development Minister Paula Bennett says in today's Budget the first phase of the reforms will cost $287.5m, including $81.5m of new spending.
The reforms include controversial financial assistance for contraception, as well as expectations that solo parents with children aged over five will undertake part-time work, and solo parents with children aged over 14 will undertake full-time work.
Welfare payments cost the country $7.6b a year.
Mrs Bennett says the reforms will have "upfront costs", such as childcare and employing extra staff, but will have long-term savings as people get off welfare and move into work.
The second phase of reforms will be announced in next year's Budget. The entire reforms will cost at least $520m and save $1b over four years.
The Budget spending announced today includes:
· $148.8m for youth services, including budgeting and parenting courses and financial support.
· $80m over for childcare and assistance payments.
· $55.1m for 155 dedicated Work and Income staff to support job seekers and sole parents into work.
· $1m for contraception.
· $1.1m for Work and Income board.
David Williams
Thu, 24 May 2012
Thu, 24 May 2012
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BUDGET 2012: $500m welfare reforms to save $1b
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