Main benefits

Overall trends

Numbers receiving main benefits

The number receiving a main benefit decreased between July 2010 and June 2011

This decrease (see table MB.1) reflected a combination of:

• the slow improvement in economic conditions
• an ongoing emphasis by Work and Income on moving as many clients into work as possible.

Most recipients of a main benefit were aged 25–59 years

Between 2007 and 2011 (see table MB.1), between 39% and 41% of working-age clients receiving a main benefit were aged 40–59 years. Between 32% and 34% of these clients were aged 25–39 years.

table MB.1: Ages of clients receiving a main benefit

Note

1. The number of clients recorded in SWIFTT as receiving a main benefit at the end of June.

In 2010 and 2011, three in five benefit recipients were receiving a Domestic Purposes Benefit or an Invalid’s Benefit

In 2010 and 2011, around 34% of main benefit recipients were receiving a Domestic Purposes Benefit (see table MB.2). Over the same period, around 26% were receiving an Invalid’s Benefit and between 17% and 19% were receiving an Unemployment Benefit.

A small reduction between 2010 and 2011 in the number of working-age clients receiving a main benefit was driven by the decreased use of Unemployment Benefits.

Unemployment Benefits formed the largest part of the decrease in main benefit numbers between 2010 and 2011 (see table MB.2). The number receiving Sickness Benefits or an Invalid’s Benefit decreased more slowly than the number receiving Unemployment Benefits. The number receiving Domestic Purposes Benefits increased.

table MB.2: Types of main benefits received by working-age clients

Notes

1. The number of working-age clients recorded in SWIFTT as receiving a main benefit at the end of June.
2. Comprises Unemployment Benefit – Training, Unemployment Benefit – Hardship – Training, Unemployment Benefit – Student Hardship, Independent Youth Benefit, Widow’s Benefit and Emergency Benefit.

Clients were less likely to have received their benefit for less than one year

Between 2009 and 2011, the proportion of working-age main benefit recipients who had received their benefit for less than one year decreased from 40% to 34%. Over the same period, the proportion receiving their benefit for over two years increased slightly, from 46% to 50%. Both changes resulted from a combination of:

• a reduction between 2009/2010 and 2010/2011 in the number of clients granted a main benefit
• an increase over the same period in the number of clients cancelling a main benefit.

Over two-fifths of working-age beneficiaries were New Zealand European and around one-third were Māori

During this period, 44% of working-age main benefit recipients identified as New Zealand European, while 32% identified as Māori.

Main benefits granted

The number of main benefits granted decreased between 2010 and 2011

This decrease (see table MB.3) reflected the combined impacts of:

• the slow economic recovery from recession
• an ongoing emphasis by Work and Income on moving as many clients into work as possible.

Around a third of clients granted a main benefit had not received a main benefit for at least four years

Between 2008/2009 and 2010/2011, between 31% and 36% of clients granted these benefits had not received a main benefit in the previous four years (see table MB.3). Over this period, the proportion who had received a main benefit within the last six months rose from 38% to 45%.

This pattern reflected both:

• the impacts of the economic recession on people who were previously independent of the benefit system
• the fact that, during an economic recession, some clients are more vulnerable than others to repeated spells on benefits.

table MB.3: Periods since clients last received any main benefit

Note

1. The number of successful applications for a main benefit recorded in SWIFTT during years ended June.

Unemployment Benefits formed over two-fifths of the main benefits granted

Between 42% and 44% of main benefits granted between 2008/2009 and 2010/2011 were Unemployment Benefits (see table MB.4). This compared with 30% in 2007/2008.

This change reflected increases in unemployment as a result of the economic recession and the slow labour market recovery which followed the end of the recession.

table MB.4: Types of main benefits granted to working-age clients

Notes

1. The number of successful applications from working-age clients for a main benefit recorded in SWIFTT during years ended June.
2. Comprises Unemployment Benefit – Training, Unemployment Benefit – Hardship – Training, Unemployment Benefit – Student Hardship, Independent Youth Benefit, Widow’s Benefit and Emergency Benefit.

Numbers of main benefits cancelled

The numbers of main benefits cancelled increased steeply between 2008/2009 and 2010/2011

This increase (see table MB.5) reflected a combination of increasing numbers receiving a main benefit and increased work opportunities as the economic recession began to ease.

During this period, main benefits cancelled became more likely to be Unemployment Benefits

Forty-four percent of the main benefits cancelled by working-age clients in 2009/2010 and 2010/2011 were Unemployment Benefits, compared with 35% in 2008/2009 (see table MB.5). This change largely reflected changes in the numbers receiving different types of main benefit.

table MB.5: Types of main benefits cancelled

Notes

1. The number of cancellations of main benefits recorded in SWIFTT during years ended June.
2. Comprises Unemployment Benefit – Training, Unemployment Benefit – Hardship – Training, Unemployment Benefit – Student Hardship, Independent Youth Benefit, Widow’s Benefit and Emergency Benefit.

Clients cancelling a main benefit became slightly more likely to be entering paid work

Thirty-three percent of the cancellations of main benefits in 2009/2010 and 2010/2011 were because the client was entering paid work. This proportion was similar to that in 2007/2008, but slightly up on the 29% in 2008/2009.

Transfers within the benefit system

The number of transfers increased between 2007/2008 and 2010/2011

This increase (see table MB.6) was steepest between 2008/2009 and 2009/2010.

Most transfers reflected changes in client circumstances

Most transfers within the benefit system were to a form of assistance different from that the client was receiving before the transfer (see table MB.6). These transfers reflected changes in client circumstances (eg improvements in health status that meant clients could seek work).

Transfers from Unemployment Benefits and Sickness Benefits dominated transfers to other assistance

Transfers from Unemployment Benefits were mainly to other unemployment-associated benefits (usually Unemployment Benefit – Training or Unemployment Benefit – Hardship – Training). Transfers from Sickness Benefits were mainly to Unemployment Benefits or Domestic Purposes Benefits.

A transfer within the same group of main benefits may reflect a change in the client’s circumstances (eg a sole parent turns 18 years of age and the client transfers from an Emergency Maintenance Allowance to a Domestic Purposes Benefit – Sole Parent) or it may be recorded because the client’s benefit was cancelled then resumed as part of reviewing the client’s needs and entitlement to assistance.

table MB.6: Transfers within the benefit system by working-age clients

Note

1. The number of transfers within the benefit system recorded in SWIFTT during years ended June. The dates of these transfers reflected the dates at which a new benefit was granted, not the dates at which a former benefit was cancelled.

Documents

• MSD-statistical-report-2011.pdf (2 MB)
• MSD-statistical-report-2011.doc (2 MB)
• MSD-statistical-report-2011.epub (652 KB)