Minister for Social Development and Employment Louise Upston claims the trend of people spending longer on benefits is now built into the system.
Photograph: RNZ/Angus Dreaver

The government says the latest figures predicting how long benefit recipients will remain on benefits underline the need for tougher sanctions.

The Ministry of Social Development (MSD) analyzed benefit data up to September 2023 and compared them with the previous year’s estimates.

Those who already had assistance were expected to receive it for a slightly shorter period of time (13.4 years instead of 13.6 years).

This estimate was 10.7 years when National was last in power in 2017.

Minister for Social Development and Employment, Louise Upston, said: “These findings show just how much of a problem welfare dependency has become in recent years and highlight the urgent need for the government to implement Employee Welfare reforms to get more people into work.” he said.

The total number of people receiving social assistance increased, but MSD’s report said this was to be expected, given the Treasury’s prediction that economic conditions would weaken.

People aged 16-24 were also expected to receive the main benefit for a shorter period – 20.3 years instead of 21.4 years.

The total number of young people receiving social assistance also increased, but MSD again attributed this to economic conditions.

Younger customers were more likely to have lower skill levels, more temporary employment arrangements, and higher levels of employment in sectors such as the service sector.

MSD’s report said young people’s headline benefit figures tended to improve faster than most other age groups.

The government introduced Tougher welfare sanctions and requirements earlier this year.

Speaking about this week’s forecasts, Upston said the trend of people spending longer on benefits was now built into the system and needed to be stopped.

“This government has bigger ambitions for tens of thousands of young New Zealanders than spending roughly half their working-age lives on welfare.

“That’s why we’ve introduced clear consequences for job seekers who fail to meet their welfare obligations to prepare for or find work. It’s crucial that young people take basic steps to avoid falling into the trap of long-term welfare dependency.”

Upston said the coalition is providing more early intervention for youth beneficiaries through a new phone-based employment case management service, more places where youth can receive community job coaching and more regular work seminars.

“The work ahead to address the deep-rooted causes of welfare dependency is remarkable, but so is this government’s commitment to supporting New Zealanders’ desire for a better life through work.”