Labour kisses goodbye to single core benefit

The Prime Minister has finally kissed goodbye to Labour's much-trumpeted single core benefit, says National's Welfare spokeswoman, Judith Collins.

"Helen Clark put the final nail in the coffin of this mythical initiative in her complete omission of any reference to it in her opening address to Parliament today.

"This speech is supposed to set out the Government's priorities for the year ahead, but no mention was made of it.

"It's no surprise really. From the time it was a germ of an idea and flagged by Labour in 1989, it has been re-announced in various incarnations.

"In 2000, Steve Maharey said the single core benefit would be finalised by 2002. Labour then said in 2004, that it would be cleared by Cabinet by the end of that year.

"In January 2005, Helen Clark said 'it's very close to coming to a head' (clipping attached) and Steve Maharey later promised that legislation would be introduced that year, helping save the taxpayer up to $70 million annually.

"Helen Clark then announced in her 2006 opening speech to Parliament that 'work will be stepped up this year on a new benefit structure, aimed at offering the same range of case management services for employment to people across the current separate categories'.

"David Benson-Pope said in October 2006, that 'Cabinet decisions on these matters will be announced shortly'.

"Helen Clark will dismiss her failure to commit to this cursed initiative as a mere oversight.

"But the writing's been on the wall for almost a decade. The single core benefit has been put out of its misery and is, finally, dead and buried."


New Zealand Herald — news — general — Jan 31 2005 5:00AM
PM set to unveil universal benefit
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Prime Minister Helen Clark will present a big overhaul of the social welfare system when she addresses Parliament's first sitting of election year tomorrow.

She told the Herald yesterday an overhaul of the benefits system was under way to create a single universal benefit, a long-held aim of some in the Labour Party.

"It's very close to coming to a head."

Helen Clark said the central focus of the overhaul would be on how to move people from benefits to independence under a strong, single-benefit structure.

Welfare dependency was the target of National leader Don Brash's Orewa speech last Tuesday but Helen Clark said work on the overhaul had been going on for a long time.

The plans are understood to involve replacing the complex system of 10 base benefits - including sickness, invalids, unemployment and domestic purposes - with a single universal benefit.

The Herald understands there is no intention to cut benefit levels. People with special needs - such as invalids - would get top-ups with their universal benefit.

The raft of additional payments would be incorporated into the proposed single benefit but the most important add-on - the accommodation supplement - is likely to remain unchanged.

Social Development and Employment Minister Steve Maharey could not be contacted last night.

Last October he said there were 10 base benefits and 36 add-ons in the present system. He wanted to cut the amount of time Work and Income staff spent administering the system - reportedly 70 per cent - so they could concentrate on helping beneficiaries move off welfare.

Helen Clark will also use her speech to indicate plans to boost savings and home ownership, as well as increase labour productivity and workforce participation rates.

Last November at Labour's annual conference she touched on plans for a third term that included:

* Helping prospective home owners save their deposit.

* Incentives for those saving for tertiary education.

* Ensuring more people save for retirement.

"There's intense policy work going on, so I'll be signalling pretty clearly across those areas," she said yesterday. However, she indicated that little detail of the initiatives would be offered tomorrow.

The Prime Minister refused to comment on whether cuts to personal or company tax rates were part of the Government's plans this year.

Benefits overhaul

What's the problem?

* The system is so complex people are not getting their full entitlement, and staff are spending too much time on administration instead of getting beneficiaries off welfare.

How it might work

* Ten benefit types would be merged into one universal benefit.

* The many supplementary payments would be incorporated into the single benefit - although the accommodation supplement is likely to remain unchanged.