Employment scheme funding will be targeted at those on Jobseeker benefits. Photo: RNZ
New targets set by the Minister of Social Development will see a greater proportion of spending on employment programmes go towards those on Jobseeker benefits, rather than those not on a benefit at all.
Some $1.1 billion of MSD funding is available for employment support schemes such as Mana in Mahi and Flexi-wage.
Minister of Social Development Louise Upston said she wanted to put beneficiaries first in the queue for support schemes that boosted people's job prospects.
"The previous government's approach saw significant numbers of people who were not receiving any benefit accessing expensive employment schemes."
Upston said 62 percent of Mana in Mahi participants were not on a main benefit in the second half of 2023, while 31 per cent were Jobseeker beneficiaries.
"The last government argued that spending on non-beneficiaries would prevent them entering the benefit system, but 70,000 more people moved onto Jobseeker Support during its time and 35,000 spent longer than a year on this benefit at a time when businesses were desperate for staff."
Upston said each participant in Mana in Mahi cost $17,000 and each Flexi-Wage participant cost $8000.
"So we need to make sure these resources are being spent on those with the greatest need over those capable of obtaining work without it."
The government had set two targets to achieve this:
- To have 70-75 percent of those supported by Flexi-wage being people on Jobseeker Support by June 2025 (up from 49 percent)
- To have 50-55 percent of those supported by Mana in Mahi being people on Jobseeker Support by June 2025 (up from 31 percent)
Non-beneficiaries would still qualify for employment support.