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What evidence is behind the claim that “This will result in more exits off benefits and into work, producing savings to the Crown” in the Employment Supports for Sole Parents appropriation in the summary of initiatives for Budget 2026? and 1 other question

Answered 24732, 24734 (2026)
Questions published
Reply lodged

Asked by

Willow-Jean Prime

List MP · Labour Party

Questions

  • 24732

    What evidence is behind the claim that “This will result in more exits off benefits and into work, producing savings to the Crown” in the Employment Supports for Sole Parents appropriation in the summary of initiatives for Budget 2026?

  • 24734

    What forecasts are behind the claim that “This will result in more exits off benefits and into work, producing savings to the Crown” in the Employment Supports for Sole Parents appropriation in the summary of initiatives for Budget 2026?

Answered by

Hon Louise Upston

Member for Taupō · National Party · Minister for Social Development and Employment

Answer

I am advised that the Ministry of Social Development’s (the Ministry) savings estimates are based on evidence from previous evaluations and modelling, including a June 2019 evaluation of intensive case management, which found returns on investment for sole parents of around $3.40 for every dollar spent. I am further advised that this evidence, combined with the Ministry’s administrative data and Sole Parent Support benefit forecast, was used to model how increased case management reduces time on benefit and supports more sustained employment outcomes, with these impacts applied to expected client numbers to estimate future reductions in benefit costs. This is also my response to WPQ 24732 (2026)