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
- 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
- The number of working-age clients recorded in SWIFTT as receiving a main benefit at the end of June.
- 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
- 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
- The number of successful applications from working-age clients for a main benefit recorded in SWIFTT during years ended June.
- 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
- The number of cancellations of main benefits recorded in SWIFTT during years ended June.
- 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
- 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.