8. Question No. 8—Social Development and EmploymentRICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and EmploymentQuestion No. 8—Social Development and Employment8. RICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and Employment: What is her response to the findings of MSD's Experiences of Money Management in the Youth Service report that payments are often inadequate and that compulsory money management may lead to further debt stigma and hinders our young people?Hon CARMEL SEPULONI (Minister for Social Development and Employment): I welcome the report. The report was commissioned following the Welfare Expert Advisory Group (WEAG)—when they recommended abolishing compulsory money management for young people receiving a benefit aged 16 to 19. The report provides further information on what was detailed in the WEAG report and includes the perspectives of service providers and young people. The Ministry of Social Development is now looking at those findings and will provide me with additional advice on potential ways forward including any operational and fiscal implications and those will need to be worked through carefully. As indicated in the Welfare Expert Advisory Group report or the Cabinet paper that followed the WEAG report this is part of our medium- to long-term plan.Ricardo Menéndez March: Does the Minister believe rangatahi on the youth benefit have enough left on their payment card after living costs to cover basic expenses?Hon CARMEL SEPULONI: I think that we've been really clear that income adequacy in the welfare system is an issue across the board. What this report highlights is that the payment card doesn't necessarily work in the way that it was potentially intended particularly for young people.Ricardo Menéndez March: What does she say to the young people who are left disempowered and with as little as $7 in hand due to the universal compulsory nature of money management that comes from the youth payment card?Hon CARMEL SEPULONI: That we are doing work on this; that we've outlined a plan for addressing it. I will also note though that the report does say that for some young people money management does work. The area that they were most concerned about was the payment card and the constraints of where and how they can use that. I think one of the groups in particular who were struggling with the practicalities of having a payment card were young people who live rurally.Ricardo Menéndez March: What new actions in the short term will the Minister take to further lift the incomes of young people who face skyrocketing rents?Hon CARMEL SEPULONI: We did move quickly. Last year we increased benefits. We have indexed them to wages and so we will see another increase on 1 April. That is more than what it would have been if we were still set to the Consumers Price Index. We do still need to do more in the income adequacy space for those on welfare and we're committed to doing that.Ricardo Menéndez March: Will she listen to the young people and researchers in the ministry's report who called for more control over their money?Hon CARMEL SEPULONI: I am certainly considering the findings of the report and look forward to further advice that I will receive from the Ministry of Social Development.Ricardo Menéndez March: Will she direct her ministry to stop docking young people's benefits as sanctions have been shown to be ineffective and harmful?Hon CARMEL SEPULONI: We have addressed two of the sanctions. One that was discussed today was the subsequent child policy and also the repeal of section 192. We are committed to reviewing excessive sanctions and that is ongoing work. As I've said there are two that have already been addressed. That doesn't mean that there's not more to do in the welfare system to uphold the dignity of those who have to access welfare support.