O'Connor Greg; Warren-Clark AngieSocial Development and EmploymentCHAIRPERSON (Greg O'Connor): Members we now have the Minister for Social Development and Employment. The Minister is available from 4.51 p.m. to 5.51 p.m.ANGIE WARREN-CLARK (Chairperson of the Social Services and Community Committee): Thank you Mr Chair. As the chair of the Social Services Committee pleasure to lead off the debate for Vote Social Development for 2023-24. This is a huge report 19-pager: I'm going to whistle-stop through it so I just want to acknowledge all those who were involved in the questioning and delivering of answers.Vote Social Development is the largest vote in Budget 2023 at $42.9 billion. Vote Social Development funds the provision of income support and the administration of associated systems and processes. Benefits or related expense accounts account for $35.9 billion or 83 percent of the total vote funding. These appropriations are driven by demand and include superannuation accommodation hardship and disability allowances and the winter energy payment. Seven Ministers have responsibility for the appropriations in the vote: the Minister for Social Development and Employment who is in the chair today—thank you Madam—and the Ministers for Disability Issues Revenue Veterans Youth and Seniors. We heard from the Hon Carmel Sepuloni as well as the Ministers of Disability Youth and Seniors. Of note is the $24.45 billion allocated under supporting tangata whaikaha Māori and disabled people within the vote.CHAIRPERSON (Greg O'Connor): Sorry excuse me Ms Warren-Clark. Apparently your microphone is not working. Would you mind moving along one and we'll allocate the time accordingly?ANGIE WARREN-CLARK: Would you like me to start again?Hon Scott Simpson: No.ANGIE WARREN-CLARK: No! Ha ha—how rude! Is that better? Oh yes that's better. All righty.CHAIRPERSON (Greg O'Connor): The House has missed a lot I'm sure but carry on.Terisa Ngobi: Start again.ANGIE WARREN-CLARK: I think I should start again. The biggest spend—OK. I want to thank the Ministers for attending these sessions and thank all the CEOs etc. Te Pae Tawhiti is a business transformation for the Ministry of Social Development (MSD). The Minister described the business transformation programme Te Pae Tawhiti as possibly the most ambitious of its kind in the public service. It is a nine-year programme; the goal is to transform MSD's systems and services to ensure that clients are treated with dignity and respect.We spoke about the Total Incomes annual report. The report found that total incomes after housing costs for people receiving a main benefit are 48 percent higher than at the end of 2017. The Minister noted that those on the lowest incomes have fallen behind over the last three decades and said that there had been no honest attempt to try and catch that up. The Minister pointed out that the Government has increased the minimum wage each year since 2017 and extended the access criteria for special needs grants and recoverable assistance payments to low income workers as well.She noted that the Budget 2023 proposed funding of $18.67 million for childcare assistance was a 9 percent increase. The Minister also told us that the income threshold for eligibility to receive the childcare and Out of School and Recreation payments had increased as it not had changed since 2010. They helped to cover the cost of childcare and after school care or holiday programs. She said that the new threshold reflects where it would have been had it continued to lift from 2010. Vote Social Development seeks $266 million dollars for special needs grants and $372 million for the Recoverable Assistance appropriation.The Minister told us that fees increases were to recognise the additional pressures that low income households have faced during COVID-19. The Minister told us that the maximum accommodation supplement was also increased in 2018 and she said that there were concerns that this would affect the rental market and the cost of housing but this had not been the case. We referred to a number of statistics related to beneficiary numbers and projections: the Minister noted that the percentage of people who have exited the benefit and have returned within one year was 48 percent. The Minister also noticed that despite challenges from COVID-19 the cost of living and weather events New Zealand's labour market is faring well and unemployment rate is at a near-record low. My time is suddenly gone so—CHAIRPERSON (Greg O'Connor): I'll give you another minute for the time that we had to cut you off so carry on. ANGIE WARREN-CLARK: Thank you Mr Chair. The Minister noted that three years after the 2008 global financial crisis 12.3 percent of the working age population was receiving a benefit in comparison to 11.1 percent today. We also heard a total of 6000-plus beneficiary sanctions were issued during the March 2023 quarter. The Minister said that benefit sanctions are issued as a last resort and that MSD and its clients have obligations to one another.In 2021-22 25218 people moved from the benefit into employment. We asked the Minister what MSD's most effective interventions are and what its top priorities in terms of supporting people into work were. The Minister noted Mana in Mahi employment placement or assistance initiatives the Training Incentive Allowances youth services and job search assistance. There is more to say but I do recommend that the appropriations for the year ending 30 June for the Vote Social Development be accepted.