New report estimates long-term benefit reliance.
The government has highlighted the need for its Welfare that Works reforms in light of a new report forecasting young people on benefits will spend an average of 20 more years relying on welfare. The Benefit System Insights report, released by MSD, found little improvement in these projections between 2022 and 2023.
According to the report, those under 25 on Jobseeker Support would spend an average of 18 years on a benefit, while those under 20 receiving a youth benefit would spend about 23 years. The government argues that these findings demonstrate the urgent need for its reforms to get more people into jobs.
Social Development and Employment Minister Louise Upston says the trend of prolonged benefit reliance was established before the Covid pandemic and has been exacerbated by previous policies. She emphasizes that the goal is to make the benefit system a pathway to employment, rather than a long-term dependency trap. The government's approach includes introducing consequences for non-compliance, early intervention services, and increased community job coaching opportunities.
The report marks a significant milestone in the conversation about welfare reform, highlighting the need for sustained efforts to address the causes of welfare dependency.