Judith Collins MP
National Party Welfare Spokeswoman

24 September 2007

Majority of beneficiaries looking at 10-year stint

National’s Welfare spokeswoman, Judith Collins, says most current beneficiaries are expected to be on a benefit in 10 years' time.

The revelation is contained in documents Ms Collins has obtained under the Official Information Act.

“Research by the Ministry of Social Development on this issue was intended to aid decision-making about the merits of employment interventions.

“But the report, ‘Estimations of Future Liability for Recipients of Working Age Benefits,’ makes for disturbing reading.”

Ms Collins says the saddest statistic involves teenage mothers on the DPB. The Ministry expects a staggering 74% of DPB recipients aged 19 and under will still be on a benefit in 10 years' time.

“For 20 to 29-year-olds on the DPB the figure is 67%, and for 30 to 39-year-olds it is 62%.

“The forecast is also disturbing for sickness and invalid beneficiaries. Even though the sickness benefit is meant to be for short-term illness, MSD expects that more than 60% of current sickness beneficiaries will still be on a benefit in10 years.

“More than 80% of current invalid beneficiaries are expected to be still on a benefit in 10 years.

“I revealed yesterday that the expected gross benefit expenditure figure over the next 10 years is more than $25 billion and that is considered a conservative estimate.

“The news just gets worse.”

ENDS

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