New Zealand New Welfare Reform 2012

The Ministry of Social Development is submitting new legislation which will replace the old social welfare system. I have read the proposed changes, which draw on a lot of the UK and Australia benefit system features. For example, instead of an Independent Youth benefit, we now have a Youth Payment Package. All the benefit types are named differently with greater focus on employment. The new benefit systems appear to have some sound features and they may minimize the perverse incentive features which produce long-term benefit dependency. However, at the same time, the subsidies policy appears to be demeaning because it so immediately intrudes into the personal space of the benefit applicant. The new system needs to be looked at closely once the proposed legislations becomes the law.