Statement of Intent - Strategic direction

Strategic direction

The recession is the single most important issue facing the Social Development portfolio. The direct impact of challenging economic times will be higher unemployment, lower employment and an increase in beneficiary numbers. Although unemployment numbers are lower than they were some years ago, they have grown quickly since December 2008. Helping businesses stay viable so people can get and keep work, is the best contribution the Ministry of Social Development can make to lessen the impact of the recession on the labour market.

We are already working with more clients and clients with different needs. We will need to focus on getting our Job Search Service ready to meet the new demands. This will help us to continue to get people directly into jobs on first contact, rather than onto a benefit. For those who do go onto benefit, the aim is to move them into work as soon as possible.

We are still getting people into work quickly, despite the difficult labour market. Of those who went onto a benefit from January to March 2009, two-thirds of that number got  a job. The remainder of them needs income assistance. It is necessary to balance providing accessible support and making sure individuals take responsibility for their own futures. The Government will always help people in times of hardship and need, but people must be prepared to help themselves and to do what needs to be done to improve their situation. The Ministry will develop and implement policies and practices that make paid employment the best option for all of those people able to work.

The ReStart package launched at the end of 2008, responds to recession-driven redundancies. ReStart gives temporary financial help and job search assistance to people made redundant. The Government also moved quickly to help businesses retain their staff in tougher economic conditions. The Job Support Scheme helps employers to avoid redundancies by paying an allowance to employees who have agreed to work reduced hours. Both these schemes are directed at people who would normally be not eligible for benefit assistance.

The economic downturn is also expected to have a number of wider social impacts which if left unchecked, will harshly affect our communities and the New Zealand economy in years to come.

Family violence, child abuse, neglect and offending are all correlated with social and economic situations. The key to dealing with these issues is to direct resources and effort early in people’s lives and early in the life of the problem. Early action to stop violence is more effective in protecting children and rehabilitating perpetrators.

The economic cost of crime in New Zealand was $12.5 billion in 2005/2006. About $10 billion of that was borne by individuals, businesses and communities. Some young people need more support so they don’t end up in the youth justice system or, once in the youth justice system, in the adult criminal justice system. Getting people on the right track needs to be a priority if we are to reduce the cost of the criminal justice system and the impact of crime on our communities.

This Government’s plan is to have all young people under the age of 18 years in work, education, or training. This will be supported by a universal education entitlement for all 16 and 17 year olds. This will give young people free access to study towards school-level qualifications, while providing flexibility for different learning styles.

The significant growth in our older population is a factor out of our control. One in four New Zealanders will be aged 65 and over in the next 30 years. An ageing population potentially reduces the working age population, limiting economic growth and Government revenue. Therefore keeping as many older people in work as we can makes good sense. Retaining the skills and wisdom of older people brings a number of benefits to the workplace.

Communities contribute to the wellbeing of individuals, families and whānau. A strong community will support its members to thrive. A well functioning community is supported by a strong community and voluntary sector.

The community and voluntary sector employs 9.6 per cent of the New Zealand working population. The economic downturn will directly impact all sources of funding to non-government organisations, including those providing services to people and families in need. We will develop options to help these organisations continue doing their valuable work.

We need to know we are getting better value out of government spending. This is happening through the line-by-line review of expenditure, by eliminating low-impact government programmes, and by reducing overheads.

The Government's priorities for the Ministry of Social Development are to:

• protect people from the worst effects of the recession and to minimise unemployment
• get the incentives right to make work the most attractive option
• get troubled youth back on track and to help young people achieve their potential
• make sure young children have a positive start to life
• keep at-risk children safe - with emphasis on under two year olds
• improve support for families - and young parents in particular
• support the independence of older people
• make sure individuals and families to live in communities that provide them with the support they need to function effectively
• promote positive change across society in attitudes towards people with disabilities.

The emphasis for the Ministry will be to help people help themselves. To do this we will:

• support people through the recession and ensure New Zealanders are ready for economic recovery
• help businesses to retain their workforce
• help people who lose their jobs because of the recession
• support troubled youth to get them on a positive life path
• help all youth, including those within the youth justice system, to achieve their potential
• protect at-risk children by stepping in if abuse or neglect is suspected
• provide parenting programmes to help families succeed
• encourage an integrated approach to whanau wellbeing
• ensure value for money in everything we do by running efficient programmes and keeping overhead costs low.

We need to be absolutely sure our services are effective and efficient.

Measuring performance and cost-effectiveness

Performance measures tell us whether we are delivering services well. Indicators tell us what difference our services are making in improving the lives of those receiving them. The Ministry is committed to improving how we measure service performance so we can better describe the impact our services have on people. We also regularly evaluate Ministry programmes to confirm they meet our objectives.

The 2009–2012 Statement of Intent includes a number of revised indicators. Where possible information on trends indicators is provided. The associated 2009 Output Plan has a number of new service performance measures and changes made where existing measures were not considered appropriate or where circumstances have changed.

We have included two indicators in the Outcomes for Working Age People. They are the proportion of Unemployment Benefit applicants who do not need a benefit after they have approached Work and Income, and the numbers of beneficiaries who exit into full-time work. Estimates of the savings in benefit not paid to these people provide an indication of the cost effectiveness of our approach. A related set of service performance measures for Services to Help People into Work or Achieve Independence are included in the Output Plan. Because of its size and importance, we will continue to work on the intervention logic of Services to Help People into Work or Achieve Independence to improve our knowledge of the effectiveness of these services.

A new effectiveness indicator under Outcomes for Young People provides information on the level of repeat offending by youth justice clients. This indicator will tell us whether we have been successful in minimising ongoing youth offending.

Similarly a new effectiveness indicator in the Outcomes for Children section for reported reoccurring cases of child abuse or neglect will tell us about our effectiveness in breaking the cycle of abuse and neglect.

Under Outcomes for Families and Whānau, we regularly monitor a broad range of outcomes achieved by at-risk families who have received assistance under the Integrated Service Response¹ (ISR) initiative. As well, we monitor indicators of risk and resilience in families’ backgrounds and circumstances. We are committed to action that will strengthen whānau capabilities.

During 2009/2010 the Ministry will continue to improve its indicators and measures. Particular emphasis will go into the development of effectiveness measures.

¹ The Integrated Service Response identifies families with multiple and complex needs, providing them with services that aim to reduce their level of risk and to build on their strengths.