Christopher Luxon
Prime Minister
Minister, Ministerial Services
Minister, National Security and Intelligence
Good afternoon, everybody. I have to say, with the deadline rapidly approaching for this coalition Government’s first 100 days, we are making good progress. Some 27 of the 49 action points on that list have now been completed, and this week in the House we continue that work. Those areas of work include bills around rebuilding the economy, easing the cost of living, restoring law and order, and delivering better public services. With me today is our social development and employment Minister, Louise Upston, to talk about one of our Government’s other priority areas.
Today, we’re announcing that Cabinet has agreed on the early actions this Government will take to support more people into work and break the shackles of welfare dependency that has trapped far too many people on benefits under the previous Government. Minister Upston has written to the Ministry of Social Development setting out our Government’s expectations that all benefit sanctions are applied to people who refuse to comply with their obligations to prepare for and look for work. MSD will be required to report back regularly to the Government on its use of sanctions so that we can be sure that they are working as part of the tools we need to help move people off welfare and into work.
This Government inherited a country in decline, and as you heard in my state of the nation speech yesterday, this will require some hard decisions to repair. But we are also a Government that is prepared to make those hard decisions. And it is appalling that the previous Government, frankly, let the situation slide to the point where work-ready job seekers are now projected to spend an average of 13 years on a benefit, and that teenagers who go on to welfare will become trapped there for an average of 24 years of their working life. Putting that into perspective, a teenager who becomes trapped on welfare now may not get their first job until they’re 40 because of how broken the welfare system has become under Labour. So the cost of this is significant, both in terms of the social harm that a life on welfare can have and then also the actual cost of that ongoing support. Current modelling shows young people who spend almost their entire working life on a main benefit could end up costing the taxpayer nearly $1 million each in future payments. We cannot and we will not accept that as a future for our young people.
The welfare system under this Government will continue to support job seekers who can work into work and make it easier for people to stay on track with their obligations. We will back hard-working people who get up at the crack of dawn to open a corner dairy or to milk cows so they can raise their families and provide them with greater opportunities. And we will back those people who stand up and say they aren’t prepared to live life on a benefit and are prepared to put their best foot forward in search of a job. We want to know that we will back them strongly. But there also needs to be consequences for those who knowingly abuse the support that they received from taxpayers by refusing to do their bit and to deliver on their obligations. And with that, I’ll hand over to Minister Upston to make a few more remarks.