Breaking the cycle for young people
Last week the Prime Minister announced a series of welfare reforms, aimed at breaking the cycle of disadvantage amongst young people.
We know that far too many young people drift onto a benefit at a young age and then get stuck there.
History shows that ninety per cent of disengaged 16- and 17-year-olds will go on to an adult benefit unless we intervene.
Teen parents who go on a benefit are likely to spend at least seven years of the next decade on welfare. They are likely to have more children while on welfare, and their children are likely to go on welfare themselves in years to come.
Horowhenua has nearly double the national average for teen births, which is not something to be proud of.
At a local level, this is why we are setting up a Teen Parent Unit at Waiopehu College in Levin. Staying in the school system and gaining qualifications will give students, and their children, much better prospects in life.
The Government’s welfare package will invest $287 million over four years to reform welfare. Some of the extra money will go into childcare, which is vital for getting people back into work and study.
For the first time, the Ministry of Education will share information with the Ministry of Social Development to track and pick up disadvantaged young people who would otherwise fall through the cracks.
Long acting reversible contraception will be available free for beneficiaries who choose to use it. This policy got most of the headlines last week, but is actually only a small part of the package.
This backs up other reforms which will see part-time work expectation for single parents with children aged over five years, and for single parents with children aged over 14 years.
We need to spend money upfront initially, but in the longer term we expect these changes will save around $1 billion over the next four years. This will help transform welfare dependency into jobs and create more meaningful, satisfying lives.