National’s so called welfare ‘success’

Ignore all the clearly established facts of how inequality and poverty are hurting the fabric of our society, the National Party’s recent self congratulation over welfare numbers is an exercise in sophistry that deserves some kind of award.

Latest benefit numbers lowest since pre-GFC – Tolley
The latest release of benefit figures show the number of people receiving welfare is the lowest for any June quarter since before the Global Financial Crisis.

There were 285,349 people on a benefit at the end of June, a drop of 8237, or 2.8 per cent, compared with a year ago. It was the lowest June quarter since June 2008.

“I’m pleased to see the strong downward trend is continuing as Work and Income supports more people into work,” Social Development Minister Anne Tolley said.

“Sole parents continue to lead the way with a 6.5 per cent reduction nationally.” This included a 10.7 per cent drop in the number of sole parents who only have obligations to prepare for work [rather than actually finding it].

“This puts more money in the pockets of these parents, and it improves the future prospects of both parents and children.”

…National would have us believe that their draconian stick no carrot policy has worked.

Really?

Let’s put aside the fact that many of these Beneficiaries are being disqualified automatically or for any excuse WINZ can concoct and that the paperwork is purposely difficult and intimidating for beneficiaries to fill out, the simple screaming point is that half of those kicked off Welfare go onto no job!

Only half of people get jobs when leaving a benefit
“New data obtained by the CTU shows that less than half of people who come off a benefit are known to have obtained work,” says CTU economist Bill Rosenberg. “In 2014, MSD records show only 46% obtained work. We therefore cannot assume that falling benefit numbers means people coming off benefits found work.” The data was released to the CTU last month by the Ministry of Social Development under an Official Information request.

“Even adding on the 11% going into full time study means that as many as two out of five people leaving benefits aren’t going into work or study,” says Rosenberg.

“The release of information also showed that not only does the Ministry not know for sure how many of its clients found work, it has no way of knowing what quality of work they find,” Rosenberg says. “Do they get zero hour, casual, or low paid work, or go onto 90 day trials – or do they find good sustained jobs with prospects for skill development and rising incomes? The MSD’s 2013 annual report on the benefit system commented that a high proportion of people leaving a benefit returned within a year and listed as likely factors seasonal work, casual, low paid work or 90 day trials. Such comments are missing from the 2014 report even though it observed a high rate of clients returning to Jobseeker benefits despite improved labour market conditions.”

“Ministers of Social Development regularly make statements proudly announcing a reduced number of people on a benefit, saying more people are getting into work or study. The two do not necessarily match. Many people leave a benefit without getting work, and those who get work may be in insecure, poorly paid jobs,” Rosenberg commented.

“It also provides a strong caution regarding the so-called ‘Investment Approach’ which assumes that getting people off benefits is always good. It isn’t always good, particularly if people don’t find good quality jobs, and it ignores the good that comes of providing people with income at difficult times in their lives.”

…what this means is that while National boast they’re punitive Welfare measures are working and can point to stats to claim this, the reality is that they are simply throwing people onto a scrap heap, further intensifying poverty and deprivation.

Kicking people off Welfare isn’t a solution, working with the Poor, upskilling them, ensuring their actual welfare and not treating them like second class citizens is a solution.