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Average Future Years on a Benefit Increases, Again

The BFD.

Lindsay Mitchell
lindsaymitchell.blogspot.com

Lindsay Mitchell has been researching and commenting on welfare since 2001. Many of her articles have been published in mainstream media and she has appeared on radio, TV and before select committees discussing issues relating to welfare. Lindsay is also an artist who works under commission and exhibits at Wellington, New Zealand, galleries.


MSD’s Annual Report was released [on Thursday].

From the CEO’s forward:

There is a lot we can reflect on and be proud of over the last year, including:

Getting more people into jobs than ever before

A relentless focus on getting people jobs has seen 226,836 clients move off benefit into work in the last two years – our highest recorded result.

Great. But how many benefits were granted in the same two years?

415,266

In the past two years there have been more benefit grants than cancellations.

With all the Covid disruption to labour markets, movement on and off benefits has been volatile and not the best gauge of success.

Here is, perhaps, the most important indicator:

“The number of years, on average, for which people receiving a benefit at 30 June in the respective year are expected to be supported by a benefit over the remainder of their working lives.”

Image credit: lindsaymitchell.blogspot.com

There has been a 20 per cent increase in average future years on a benefit over the last five years.

Again, I put this down to expectations built by Labour. Through various policies they have made it easier to get on a benefit and stay on a benefit. Add to this a health system that isn’t fixing people…

Here’s a sobering thought.

Right now, that expectancy totals 4.43 million years.

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