Sole parent beneficiaries, 87 % of whom are women, are among the most socially and economically disadvantaged New Zealanders.[1] Since the late 1980s, the Training Incentive Allowance (TIA) has been an important stepping -stone off welfare for sole parent beneficiaries, and has allowed thousands of sole parent beneficiaries to access higher education, and gain qualifications and jobs. [2] However, this will be more difficult for sole parent beneficiaries, as the government recently made the decision to narrow the criteria for the TIA, so those sole parents beneficiaries intending to study at university are no longer eligible.[3] The Ministry of Social Development is the government agency that has a responsibility to ‘lead social development to achieve better futures for all New Zealanders.’[4] The Ministry’s most important priority presented in the Statement of Intent 2009-2012 is ‘to deliver prosperity and security, and to help New Zealanders make the best of the difficult economic situation.’[5] However, this has not been followed through, and this is evident in the government’s recent decision to cut eligibility for sole parent beneficiaries intending to access higher education, which contradicts the governments stated aims.
The decision to restrict access to the TIA to low level courses is highly problematic, as this barrier to higher levels of education for sole parent beneficiaries can further trap them into poverty, lead to welfare dependency, and can be detrimental to their children’s health, education, and may result in criminal behaviour. This means that the cut to the TIA will not only impact negatively on sole parent beneficiaries and their children, but it will also have a wider affect on New Zealand’s economy and society. The government’s decision is further problematic as it has not undertaken an assessment of the potential impact of this policy decision on sole parents and their children. The main aim of this report is to research the cut to the TIA, the potential impact it will have on sole parents and their children, and the solutions that can be implemented to address those impacts. This is addressed through several sections. The background section provides a review of the policy changes made to the TIA. This will summarise the history of the TIA, the changes made to the TIA in 2009, and sole parent beneficiaries current situation. A review of the relevant literature is also considered. This is followed by the analytical framework which assesses government failure in this problem. In analysis and findings, the methodology used is a social impact assessment, which will use information from various sources to identify the potential impact of this policy on sole parent beneficiaries and their children. This report finds that through undertaking a social impact assessment, and a cost-benefit analysis, the TIA should be reinstated for sole parent beneficiaries intending to access higher education. There are also alternatives policies that I recommend, such as either reinstate the TIA for the degree or diploma qualifications that would address New Zealand’s continuing skill shortages, or increase the amount that can be borrowed under the Student Loan Scheme.
[1] http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10588235 August 3 2009. (accessed August 5, 2009).
[2] Leah Haines, ‘‘Govt axe destroys dreams,’’ The New Zealand Herald, July 19 2009.National section.
[3] http://www.nzherald.co.nz/claire-trevett/news/article.cfm?a_id=74&objectid=10586111 July 23 2009. ( accessed August 5,2009).
[4] Ministry of Social Development, ‘‘Statement of Intent 2009–2012,’’ http://www.msd.govt.nz/documents/about-msd-and-our-work/publications-resources/corporate/statement-of-intent/2009/msd-soi-2009.pdf (accessed September 15, 2009).
[5] http://www.msd.govt.nz/documents/about-msd-and-our-work/publications-resources/corporate/statement-of-intent/2009/msd-soi-2009.pdf