Bennett Paula: Social Security (Youth Support and Work Focus) Amendment Bill — Second Reading 
Text is incorporated into the Bound Volume 
Bennett Paula: Social Security (Youth Support and Work Focus) Amendment Bill — Second Reading 
[Sitting date: 12 June 2012. Volume:680;Page:2864. Text is incorporated into the Bound Volume.] 
Hon PAULA BENNETT (Minister for Social Development) 
: 
 I move  
That the Social Security (Youth Support and Work Focus) Amendment Bill be now read a second time 
. The welfare system has not been working as it should and as it could. It has allowed too many to become trapped in an intergenerational cycle of dependence. There are more than 317000 people on welfare right now. Add to that the 220000 children living in welfare-dependent homes and that adds up to more than half a million New Zealanders reliant on welfare in any given week. 
This Government is transforming the welfare system into one that is modern active and responsible because currently it is passive out of date and quite frankly it is failing too many. We started this work with Future Focus changes in 2012 and we continue with the major reforms now before the House. We have had some successes in that time and in the last month alone we saw the unemployment benefit numbers drop to 49219 after the peak in January 2010 when 68000 were on this benefit due to the economic downturn. We never hit the projected highs of 95000 on the unemployment benefit as forecasted and as the economy improves and other measures set in we are seeing a reduction on unemployment benefits. 
At this point the Greens Labour and New Zealand First would say that their point is made: leave those on welfare alone and it will take care of itself. But factually that is not true. Although the unemployment benefit figures dropped significantly from 2003 to 2007 the sickness and invalids benefits increased by nearly 20000 people. We have managed to stabilise that trend in the last 2 years and in fact the invalids benefit numbers have decreased slightly. Because of the policy changes we made through Future Focus in 2010 we now have Work and Income working better than it ever has but more needs to be done. We could leave it as it is sure and yes the unemployment benefit numbers would decrease significantly as the economy bounces back but that would mean ignoring the other 270000 people on welfare. That would mean wiping them off as not worthy of support into work and independence from the State. I will not do that. 
I understand completely how frightening change can be. I get how debilitated and worthless some feel on welfare and the left would say that is a strong enough reason to leave well enough alone to feel sympathy for those on welfare. They would pat them on the head and feel sorry for them. How condescending how patronising and how meaningless. I will not do that. Although I understand how frightening change can be although I acknowledge that upskilling gaining confidence and getting into paid employment is not easy as Minister for Social Development I will continue to push cajole incentivise obligate and at the end of the day put all my belief in those people who are on welfare. I will take some of the anger that comes from those most unsure and often most frightened because to ignore the benefits of work to look only at what they can do instead of at what they cannot is a failure of the previous Labour Government—a failure that I will not preside over. 
Long overdue change is on its way and this is the first stage of this second-term Government’s welfare reforms. It is with good reason we start with our youth. Our next bill will include a change of category for all benefit types increased work obligations for those on the current sickness benefit penalties for recreational drug users who do not pass a drug test to get a job and cancellations of benefits for some with outstanding warrants for their arrest to name a few of the changes on their way. But this bill is really about our youth and it is also about making some changes for women living alone widows and work testing on the DPB. 
To come to this policy change we looked at who was coming on to welfare and why and any of the reasons around that are complex. Of the approximately 10000 people who go on to welfare at the age of 18 or younger their backgrounds are often complex and varied. Education has not really worked for them. They often lack strong role models and the life skills to get them ahead in life. Of the estimated 14000 young people not in employment education or training we know that up to 90 percent of them will go on a benefit by the time they are adults. We have to stop that flow. This is a group that Labour and the Greens do a lot of hand-wringing about. They use them to gain political points. But the Opposition made absolutely no difference to this group while it was in Government. 
This group of at-risk young people who are disengaged now have a National Government that is standing up and backing them. We will give them the kind of support that they need by contracting with an external non-Government provider. These providers will have the flexibility on how they work with these 16 and 17-year-olds but will be very clear on the outcomes that the Government is purchasing. The emphasis without apology is on education and training and life skills. Some young people will need intensive and expensive support; others not so much. We are actively targeting these young people because we believe that with the right support they can get the education and training they need to work keeping them out of the welfare system and stopping that cycle of dependence. 
In respect of teen parents this Government is the first to truly support teen parents on welfare. In 9 years under Labour these teens got nothing but a weekly lump sum of cash to spend however they liked. These are teenagers and they need help to learn the skills to be good parents to manage a budget to pay the bills and to live well. They also need someone to believe in them and help them see a brighter future than the one that they will get on welfare. This Government will do that. We are providing the budgeting and parenting courses. We will ensure they finish their education and get training so they have the skills to one day work in a decent job. Remember these are teenage parents and we have a responsibility for them. We are providing $80 million extra in childcare for these teen parents to allow them to do these things because we understand that that is the kind of practical support they need. We are providing the right incentives and obligations within the welfare system and removing the barriers to them gaining independence. That is what we mean by an active system. 
As a result of the select committee process there have been some changes to the bill. They are largely technical but worthwhile and I welcome them. I thank the chair of the Social Services Committee Sam Lotu-Iiga who has done an outstanding job as chair. He will discuss more of the detail of this bill in his speech tonight. 
There are those who will say that the right talk about welfare only when we want to polarise the nation or draw attention away from someone else. I say that is rubbish absolute rubbish. Every day as Minister I have worked to better the lot of those on benefits and this Government will continue to do so. We can and will make a positive difference for beneficiaries in this country. 
I hear much criticism of National’s stance on welfare dependence. I am yet to hear an alternative from the Opposition except to give them more money each week. I ask Opposition members to tell us in their speeches whether they will reverse these changes. Will they take away that support from teen parents and young people which is so desperately needed? These changes will lead to better lives for thousands of New Zealanders and I commend them to the House.