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For immediate release
7 March 2011

Welfare Working Group recommendations flawed without investment

The Government will need to drastically increase funding for support services if it adopts the recommendations from the recently-released Welfare Working Group report.

Members of ComVoices, an independent network of Tangata Whenua and community and voluntary sector organisations, said the report had accurately identified the need for more funding, but members had grave concerns about any attempts to push people off benefits without an adequate safety net.

Tina Reid of the Federation of Voluntary Welfare Organisations said attempts to get people off welfare will only work if the support systems are in place to help them get back into work.

“It is easy to come down hard on beneficiaries, but the Government must remember that we are in a time of rising unemployment. The skills gap will only be fixed by providing beneficiaries with access to training and support. To have work capable people requires more than punitive measures,” she said.

Ros Rice of the NZ Council of Social Services said there is a fine line between helping people into employment and forcing people off the benefit. The latter simply creates more issues in the community.

“The Government needs to ensure that any measures it takes to lower dependency on welfare must be backed up by robust support for those affected - whether through better access to childcare, or extra training for people struggling to find work. The last thing we need is to increase the already unacceptable gap between rich and poor.”

Wendi Wicks of DPA (NZ) says the possibility of contracting out the job location work done by Work and Income would be deeply worrying. “This is not working for disabled people in Britain so disabled people in New Zealand are alarmed that the model could be adopted here. We know jobs are not there, so forcing us into unsuitable jobs without support would be disastrous”

Tim Burns of Volunteering New Zealand said the recommendations will inevitably lead to greater demand on community and voluntary sector services, including training, child care, and support services such as ex-prisoner reintegration, budgeting and alcohol and drug abuse support.

“It needs to be emphasised that many of these services are delivered at the front line by volunteers. They need to be properly supported, resourced and led. Good volunteer programmes do not fall out of the sky, it is effective leadership and management that makes them great,” Tim Burns said.

The Prime Minister has made a commitment to ‘breaking the welfare cycle’ and has recognised the necessity of increasing upfront investment to support beneficiaries into work.

Yet at the same time the Government is planning to drop CPI-linked funding for the community and voluntary sector in the next budget - even though annual inflation is predicted to reach 4.7 per cent. This will make it even harder for community and voluntary groups to do the work the government depends on.

John Grant from Vocational Support Services said currently the Ministry of Social Development only provides partial funding to support disabled people, with organisations having to fund the full cost from other sources.

“If the Welfare Working Group wants to see an improvement in employment outcomes then it needs to recommend an investment in support services,” says Mr Grant. “We hope that there will now be genuine partnership with disabled people and with our members. It is not practical to expect improved outcomes with no investment and no discussion with those providing support.”

The New Zealand Council of Christian Social Services Vulnerability Report, released late last year, shows that after two years of increasing demand for social services, our members are already reporting longer waiting lists, fewer resources and the need to ration access to services as people in need turn to us in ever greater numbers. Since then, the rate of unemployment has continued to rise.

ComVoices Chair Robin Gunston of Prison Fellowship said successful implementation of the recommendations was going to take a strong long term partnership approach with the community and voluntary sector.

“We would hope the Government will be involving the Sector in developing its response to these recommendations. Tangata Whenua, and the community and voluntary sector have been calling for a measurable vision for New Zealand for some time.

“This week Kiwi kids will go to school hungry and without the clothing and resources they need to achieve their potential. It is not just about behaviour and attitude; it is also about opportunity and support.”

ENDS

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