National Return To Work-Testing - A Dud

Wednesday 26th September 2007

National MP Judith Collins has signalled a return to DPB work-testing under a National government. DPB work-testing was removed by Labour in 2002.

Welfare commentator Lindsay Mitchell says there are several weaknesses with this policy.

"When last in government National introduced a policy of work-testing DPB recipients. Single parents on the DPB were expected to be in part-time work or training when their youngest child turned six. But there are a number of problems with this policy."

"Firstly, many work-shy women pressured to get a job will simply look to add a new baby to their benefit. Statistics show around 5,000 babies are born onto an exisiting domestic purpose's benefit each year."

"Secondly, teenagers going onto the DPB usually miss out on finishing their education or gaining skills. By the time they face work-testing (never if they continue to grow their families) they have little to offer an employer."

"Thirdly, some women get on a training treadmill doing endless courses but never entering paid employment."

"Finally, the policy reinforces that it is completely legitimate to expect the taxpayer to fund childbearing and rearing indefinitely. Even a cap on funding for additional children will not solve the problem. Growing welfare-dependent families will simply get poorer."

In effect there is little between National's proposal and Labour's current approach, which is to require parents to re-enter the workforce as and when their family responsibilities allow. If National is serious about breaking the destructive cycle of intergenerational dependency it will have to do better than this.

ENDS

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