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  • The Statistical Report 2011
  • Introduction to The Statistical Report
    • Introduction
    • Conventions in this report
  • Overall trends in the use of financial assistance
    • Numbers receiving assistance
    • Administration of financial assistance
  • Main benefits
    • Introduction
    • Payment rates
    • Overall trends
    • Dependent children
    • Benefit recipients declaring other income
    • Unemployment Benefits
    • Other unemployment-associated benefits
    • Domestic Purposes Benefits
    • Sickness Benefits
    • Invalid's Benefit
    • Widow's Benefit
    • Emergency Benefit
  • Supplementary benefits
    • Background
    • Payment rates for supplementary benefits
    • Accommodation Supplement
    • Away from Home Allowance
    • Unsupported Child's Benefit and Orphan's Benefit
    • Childcare assistance
    • Disability Allowance
    • Child Disability Allowance
    • Training Incentive Allowance
    • Temporary Additional Support and Special Benefit
    • The ReStart Package
    • Residential Care Subsidy and Residential Support Subsidy
  • Hardship assistance
    • Background
    • Costs covered and eligibility criteria
    • Use of lump-sum hardship assistance
  • Employment services
    • Background
    • Job Opportunities and Community Max
    • Registered jobseekers
    • Job Search Service
    • Transition to Work assistance
    • Course Participation Assistance
  • Superannuation and pensions
    • Introduction
    • War Disablement Pension
    • New Zealand Superannuation
    • Veterans' Pension
  • Child, Youth and Family
    • Introduction
    • Care and Protection Services
    • Youth Justice Services
  • Services to students
    • Introduction
    • Student Allowance
    • Student Loan
    • Scholarships
    • Benefits available to students
    • Student Job Search
    • Student Allowance Transfer Grant
  • Other services
    • Community Services Card
    • SuperGold Card
    • International payments
    • Integrity Services
  • List of tables
  • List of graphs
  • Alphabetical subject list
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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

Age of client at the end of June 2007 2008 2009 2010 2011
Working-age clients receiving a main benefit1
18–24 years 37,926 38,985 57,346 61,690 58,880
25–39 years 88,958 85,933 101,361 107,525 103,647
40–49 years 58,011 57,938 67,269 72,491 71,817
50–59 years 47,561 47,185 54,193 59,354 60,903
60–64 years 28,553 28,276 30,127 31,864 32,570
Total working-age clients 261,009 258,317 310,296 332,924 327,817
  Other clients receiving a main benefit1
Total other clients 10,560 10,655 11,398 11,408 10,727
  All clients receiving a main benefit1
Total 271,569 268,972 321,694 344,332 338,544

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

Type of main benefit received at the end of June Working-age clients receiving a main benefit1
2007 2008 2009 2010 2011
Unemployment Benefits 23,159 17,710 50,855 62,085 56,264
Domestic Purposes Benefits 96,467 96,440 104,400 111,689 113,429
Sickness Benefits 48,063 46,271 54,352 58,465 58,009
Invalid’s Benefit 77,301 82,879 84,544 85,382 84,836
Other main benefits2 16,019 15,017 16,145 15,303 15,279
Total 261,009 258,317 310,296 332,924 327,817

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

Period since client last received any main benefit 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
Grants of a main benefit to working-age clients1
None (clients transferring within the benefit system) 55,322 54,339 58,505 67,218 70,397
Under 6 months 34,586 31,985 35,209 41,720 46,343
6 months–2 years 39,778 38,795 45,394 42,132 48,537
2–4 years 14,580 13,861 21,000 19,320 13,444
Over 4 years 46,195 46,178 83,891 94,685 80,783
Total grants to working-age clients 190,461 185,158 243,999 265,075 259,504
  Grants of a main benefit to other clients1
Grants to other clients 7,291 7,662 8,119 7,769 6,266
  Total grants of a main benefit1
Total 197,752 192,820 252,118 272,844 265,770

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

Type of main benefit granted Grants of a main benefit to working-age clients1
2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
Unemployment Benefits 65,736 56,094 102,367 117,783 109,480
Domestic Purposes Benefits 33,471 36,494 41,811 40,616 38,072
Sickness Benefits 48,666 49,518 55,848 55,426 52,207
Invalid’s Benefit 11,074 15,007 11,024 10,520 9,303
Other main benefits2 31,514 28,045 32,949 40,730 50,442
Total 190,461 185,158 243,999 265,075 259,504

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

Type of main benefit cancelled 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
Cancellations of a main benefit by working-age clients1
Unemployment Benefits 83,991 61,240 65,940 106,105 115,783
Domestic Purposes Benefits 39,273 36,873 34,566 34,110 36,895
Sickness Benefits 47,254 51,207 47,620 50,327 50,721
Invalid’s Benefit 8,454 8,530 8,730 8,660 8,613
Other main benefits2 32,130 29,780 32,636 42,507 51,031
Main benefits cancelled by working-age clients 211,102 187,630 189,492 241,709 263,043
  Cancellations of a main benefit by other clients1
Main benefits cancelled by other clients 8,326 7,441 7,259 7,405 7,062
  Cancellations of a main benefit by all clients1
Total 219,428 195,071 196,751 249,114 270,105

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

Type of transfer Number of transfers from a main benefit by working-age clients1
2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
Transferred to New Zealand Superannuation, a pension or another type of main benefit 49,535 48,445 51,776 59,239 60,900
Transferred within the same group of main benefits 6,412 6,472 7,327 8,600 10,157
Total transfers 55,947 54,917 59,103 67,839 71,057

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.

Page last updated: 1 July 2012

Documents

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

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