Parmar Parmjeet: Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill — First ReadingText is incorporated into the Bound VolumeParmar Parmjeet: Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill — First Reading[Sitting date: 23 July 2015. Volume:707;Page:5308. Text is incorporated into the Bound Volume.]Dr PARMJEET PARMAR (National):Thank you for the opportunity to speak in the first reading of the Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Bill.As the last speaker in the first reading of this bill I have had the privilege of listening to all 11 speakers before me.What shocked me is that Labour members compared people with cars. They have compared our teenagers with cars—a very insensitive very disconnected approach.I come back to the bill. Currently in Part 5 sections 156 to 180 of the Social Security Act 1964 the financial support that is available to young people consists of youth benefit payments for 16 to 17-year-olds with no children who have exceptional circumstances and then there are youth payment payments for 16 to 18-year-old parents. This National Government is working hard to reduce welfare dependency. We know that when people fall into the trap of welfare dependency at a young age it becomes very hard for them to come off the benefit. That is why we are interested in working with this age group. This bill is to help this age group by extending the maximum age of eligibility for youth services from 18 years to 19 years.How it works is that when a person receives a youth payment that person is automatically referred to a Youth Service provider and is linked up to a youth coach.The aim of this bill is to amend the Social Security Act to implement extensions to the Youth Service.In particular the bill extends the existing youth services to all beneficiaries 19 years of age or under with children and to 18 and 19-year-old beneficiaries who are considered to be at significant risk of becoming long-term beneficiaries.Youth Service providers provide support to these teenagers to help them build the skills that are required to get into jobs.We know that our youth services are giving us really great outcomes.As per the March 2015 numbers 86.5 percent of youth enrolled in the Youth Service were engaged in some kind of education training or work-based learning.This is an increase of 10.4 percent when compared with the same time last year.In terms of numbers this is an increase of around 1000 people so it really is a great outcome which shows that these teenagers are responding to the support and services that are available through Youth Service providers.This bill is to extend these youth services to 19-year-olds. This is to provide that support which is much needed during those years to get back into education or into employment. We know that the pathway to success is education and work. Welfare is there for those people who really need it those who are in real need.The general expectation is that when people go on a benefit they are continuously looking for job opportunities and as soon as they find a job they get off the benefit.But this bill is to help those people who are at a higher risk of going on a benefit for a long period in their life.We know that by extending these youth services the cost will go up.It is estimated that the cost of this will be somewhere between $10 million and $15 million.This is going to help about 4000 teenagers on a benefit which includes 1200 19-year-old teen parents.So yes the cost is going to go up but in the long run it is a good investment in the future and it is a good investment in our teenagers.This is going to save taxpayers money in the long run as it is estimated that for every $1 that is spent on youth services New Zealand’s long-term financial liability reduces by $2.53.We cannot have our teenagers hanging out on street corners causing social trouble or being on a benefit or developing mental issues because they do not know how to cope with their circumstances and they do not know how to come back on track.This is also going to help us reduce intergenerational welfare dependency as it is a general observation that those children who grow up in families where caregivers or parents are dependent on a benefit are highly likely to be reliant on a benefit when they grow up.The best part of this bill is that there will be activity obligations for these teenagers. That includes going back into education to work towards National Certificate of Educational Achievement (NCEA) level 2 and taking up a budgeting course that is to help with managing their money.They will have to take a parenting course as well and they will work with their youth coach to pick a parenting course that suits their needs.As a result if they meet all of these obligations they will receive an incentive payment.They are subject to controlled payment so money goes on to their card and that card can be used at any approved grocery store to buy food. Rent or boarding and the power bill are paid directly. There is an allowance that is handed to these people as well. Another great thing about this bill is that if there is any money saved by someone on their card that money will be handed over to these teenagers once they come off that money-management period.In a situation where both spouses or partners are aged 19 years or under they will be transferred to the youth payment and they will be receiving youth services as well. In the case of beneficiaries with children they will be required to enrol their child or children with a primary health care provider so that the medical side of that is taken care of. Nineteen-year-old spouses and partners of other main beneficiaries who have children will have activity obligations and they will be newly entitled to receive the incentive payments.Those 18 and 19-year-olds who do not have NCEA level 2 will be assisted by these Youth Service providers to get into education and work towards achieving NCEA level 2. If they already have NCEA level 2 then they will be provided assistance to get into jobs. The Youth Service providers’ numbers show that the NCEA level 2 achievement numbers are increasing.We know that these Youth Service providers work like mentors with these teenagers. This is like full-time mentoring providing them help with budgeting parenting and also learning getting training and helping them to get into the workforce as well.We know that mentoring helps with social and emotional development; it also helps in the improvement of youths’ perception of parental relationships. It can also increase their chances of getting into higher education. These things all lead to increased self-esteem and self-confidence and they do not have to rely on a benefit in their life.These findings are consistent with neuro-scientific research that shows that the portion of the brain that is responsible for impulse control analytical thinking judgment and future-orientation gradually develops throughout early adulthood. So young people in their teens do need this structure care support and guidance during those years so they can learn the skills that are required for them to get into education or get into jobs.Generally speaking when beneficiaries go on a benefit I do not think that they want to be on a benefit for their whole life. But once they are on a benefit for a period longer than they had originally thought they start doubting their ability to become independent and that is why this wraparound support is needed.Our focus is on people. Our focus is on their better future. This bill shows that we are delivering on our promises. This is a great bill and I support the bill. Thank you.