BUDGET 2001: Making work pay
24 May 2001
Making work pay
Giving beneficiaries the skills and opportunity to move permanently off welfare into real paying jobs is the focus of a $44.7 million budget package, says Social Services and Employment Minister Steve Maharey.
"The welfare system is full of anomalies that lock people out of the workforce because the financial gains of being in work often do not stack up. The Government is working to shift the emphasis on to lifting people's capacity to get a job and to making sure that being in work will always pay.
"Budget 2001 begins the process of removing some of the barriers to paid employment.
"Lack of
information about the support available to beneficiaries to
move into jobs, and uncertainty about the security of their
new income is a major barrier to moving from welfare and
into work. Changes funded in Budget 2001 include [all
figures over four years]:
- $2.2 million to streamline
the administration of Family Support by the Department of
Work and Income [DWI] to ensure that beneficiaries do not
lose due entitlements when they take up employment
opportunities;
- $300,000 to extend assistance via the
New Employment Transition Grant to couples who have
dependent children. The Grant provides support for new
workers not yet eligible for employer-paid leave when they
are absent from work due to sickness [themselves, their
partner or child] or because of a breakdown in child care
arrangements;
- a new $725,000 information campaign by
DWI and Inland Revenue to inform beneficiaries of the
transition-to-work and in-work assistance for which they are
eligible and which is currently under-utilised;
- $2
million to increase to $500 a year the support which can be
provided by the Work Start Grant to cover the costs of
shifting to take up a new job or buying work-related safety
equipment, and to bridge the gap between a new worker's last
benefit payment and first pay packet.
Improving opportunities
"The Government wants to evolve our
welfare system into one which actively and positively works
with beneficiaries to boost their skills. Budget
initiatives include [figures over four years unless
specified]:
- $3.6 million through the Adult Literacy
Strategy to provide basic literacy assistance for up to
2,000 job seekers;
- $4 million in 2001-02 for improved
transition-to-work and in-work support for people with
disabilities. A review of vocational services is due to be
reported to the Government later this year;
- $3 million
for a pilot programme, to run in 2002 and 2003, providing
tailored assistance to Sickness and Invalids Benefit
recipients to encourage them to participate in paid work and
community-based activities;
- a $1.2 million Early
Intervention Home Visit Pilot programme, starting this
August, to give 4,500 new domestic purposes beneficiaries in
six communities the option of a discussion at home about
employment options, financial assistance and relationship
issues; and,
- $20.2 million to provide continued support
to assist people in work or training to access subsidised
childcare, and out-of-school care [OSCAR] during school
holidays, up to a maximum of 37 hours per week. $360,000 is
also provided in 2001-02 to continue development assistance
for OSCAR providers identified as potentially
viable.
"Support worth $7.2 million over four years is also provided to the Community Employment Group to develop community-based employment initiatives by harnessing the skills of community leaders and the long-term unemployed to work on social development programmes. [Refer to the Building Stronger Communities statement, issued with Minister Tariana Turia.]
"$3.6 million is to be spent backing social entrepreneurs; $1.6 million to support small business development amongst Pacific women and $2 million for an Ecoworks programme which will assist community organisations to develop new waste management, eco-tourism and habitat protection initiatives," Steve Maharey said.
ENDS