6. Question No. 6—Social Development and EmploymentRICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and EmploymentQuestion No. 6—Social Development and Employment6. RICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and Employment: Will indexing benefit levels to inflation rather than wages result in lower increases to benefits?Hon LOUISE UPSTON (Minister for Social Development and Employment): That will depend on the actual increase in inflation and increase in wages in the given year and of course how you measure inflation and wages. For the last 31 of 35 years main benefits have been indexed to the Consumers Price Index (CPI) as a measure of inflation to ensure they increase with the cost of living. We think it is fair to protect the real purchasing power of those on main benefits and this is the approach our Government is taking.Ricardo Menéndez March: Why is it the case then that projections given to me via parliamentary written answers show that people will see lower increases to benefits?Hon LOUISE UPSTON: The difference this year will be approximately $2 and our Government is absolutely focused on first of all reducing the number of people on jobseeker benefit because we've seen a blowout in dependency under the last Government and also we are focused on reducing the cost of living and the pressures that households—those receiving benefits and on low incomes—are facing. Ricardo Menéndez March: Does she accept that because a person on the jobseeker is likely to be up to $50 worse off by the end of the decade demand for hardship grants and advances will increase under her Government?Hon LOUISE UPSTON: So the member is talking about projections 10 years out. If we look at it in the one year it's $2—$2 a week. This Government is relentlessly focused on getting the economy back to where it was so there are more opportunities higher incomes and the cost of living is not presenting the same level of pressure and hardship that Kiwi families are facing today. That is affecting those on benefit as well as those on low incomes and there is a need to balance the two.Ricardo Menéndez March: Why won't she index benefits to wages or inflation whichever is higher to ensure everyone is supported in good and bad times?Hon LOUISE UPSTON: This Government has made the decision to be consistent to follow what has been done in 31 of the last 35 years which is to increase it based on the CPI. What we won't do is allow a young person who goes on to the jobseeker benefit under the age of 20 to have a forecast of 24 years on welfare—we won't be doing that.Ricardo Menéndez March: Is she confident that disabled people are treated with respect and dignity when they are forced to continuously prove lifelong medical conditions to remain on the supported living payment as opposed to going on to the jobseeker benefit?Hon LOUISE UPSTON: I'm not sure it's related to the primary but I'll answer it anyway. We have a range of policies in place in New Zealand for the welfare system that do two things and a check-in with front-line staff also ensures that somebody's needs for support are being met. I think it is fair to working New Zealanders who fund the welfare system that we ensure that those who are receiving support have regular check-ins and in some cases that means reapplying for benefits to make sure that the setting is right.Ricardo Menéndez March: Why would those regular check-ins include having to continuously prove lifelong medical conditions?Hon LOUISE UPSTON: That's the way it's been for many years and I don't forecast it's going to change.