Ā mātau mahi i te 2022/23 | Our work in 2022/23

The significant weather events in the North Island (North Island weather events), and the ongoing impact on New Zealand of COVID-19, have challenged the wellbeing of many New Zealanders.

Successes achieved in the past year included delivering on Budget 2022 initiatives focused on the following:

• We supported low-income New Zealanders.
• We invested in training and better employment outcomes for New Zealanders.
• We provided support to community-based providers.
• We progressed work on our future operating and service models – Te Pae Tawhiti Programme.

Everything we do is about achieving better futures for New Zealanders

The next section describes how MSD has delivered on our three outcomes in 2022/23. Under each outcome, the year’s progress and achievements are structured according to our updated impact statements. Progress on delivering against our two overarching impact statements is presented afterwards.

Putanga tuatahi: Ka whiwhi ngā tāngata o Aotearoa i te tautoko e tika ana | Outcome one: New Zealanders get the support they require

We want to ensure New Zealanders can understand and access the support services that are available to them, when they need them, including financial and housing assistance.

Our work to ensure New Zealanders got the support they required in 2022/23 included delivering on Budget 2022 initiatives that supported low-income New Zealanders:

• improving the adequacy and accessibility of Special Needs Grants for dental treatment
• permanently increasing hardship assistance income limits
• running a 12-month full and correct entitlement pilot as a baseline study
• passing on child support payments to sole parent beneficiaries.

Improve awareness of and access to support

We implemented increases to benefit rates

Main benefit rates were increased on 1 April 2023 above wage growth, increasing by 7.2 percent in line with inflation. This meant a couple on a benefit with children received $40.86 more a week and a sole parent received $31.83 more a week.

Superannuation and student support rates were also increased in line with inflation. This meant that a single student under the age of 24 without children received $20.21 more Student Allowance per week, while Superannuation increased per fortnight by $102.84 for a couple and $66.86 for a single person living alone.

We progressed the child support pass on

In June 2023, a Bill passed into law that passes child support on to parents and carers getting a sole parent rate of main benefit, which was previously retained by the State. From 1 July 2023, parents on a sole parent rate of benefit could get child support payments paid directly to them by Inland Revenue and the child support passed on will be treated as income for calculating benefits or other assistance.

This change will impact more than 41,000 sole parent families who will be better off with a median gain of $20 a week. It is estimated that the change will help lift as many as 14,000 children out of poverty.

We reviewed accuracy of entitlements

MSD ran a 12-month Full and Correct Entitlement pilot. The findings of the study are still being finalised and will inform improvements to processes, practices and systems in the short term as well as the long term through the Te Pae Tawhiti Programme.

We implemented improved access to childcare assistance

From 3 April 2023, income thresholds for the Childcare Subsidy and Out of School Care and Recreation (OSCAR) Subsidy increased to support more families with childcare costs and reflect wage growth since 2010 when the thresholds were frozen. This change means that a family with two parents both working 40 hours per week on $26 per hour with two children under five are now eligible for a subsidy of $252 per week.

Around 10,000 additional children are estimated to benefit from this support. The change supports people to enter or stay in the workforce by increasing the affordability of childcare.

We implemented increased support for dental treatment

We also implemented changes announced in Budget 2022 designed to increase access to dental care. From 1 December 2022 two changes were implemented:

• the limit for help with dental treatment increased to up to $1,000
• the requirement for dental treatment to arise from an emergency was removed so it could be used for immediate and essential needs.

We provided emergency recovery assistance and supported communities to remain connected

MSD has played a key role in delivering welfare services to people affected by emergencies. We worked with Civil Defence Emergency Management (CDEM) to support the response to the North Island weather events in early 2023.

Our regional teams worked closely with support providers and community groups in impacted areas to ensure funding reached the people and communities most in need as quickly as possible.

MSD led the development of a Social Sector Recovery Plan on behalf of the social sector. This All-of-Government Plan will continue to be implemented through the leadership of Regional Public Service Commissioners over the next two years.

During the response to the North Island weather events MSD approved:

• more than 400 funding applications to support community groups to provide essential goods, shelter and transport, psychosocial support, income support to those in financial hardship and help with clean-up efforts
• more than 350 funding applications to support community providers to respond to increased demand on their services from individuals, whānau and communities, and to support their staff wellbeing.

MSD also supported:

• 391 Community Connectors to meet the immediate welfare needs of individuals and whānau, including those in remote and isolated communities
• more than 200 existing community food providers to refill their stocks and respond to demand in affected communities
• six disability providers through the $0.5 million Disability Support Fund to respond to, and directly support, the needs of disabled people and their whānau impacted by floods and Cyclone Gabrielle
• communities’ access to information with accessible communication and translation.

Between 28 January 2023 and 30 June 2023, MSD made more than $66.2 million in Civil Defence Payments, providing more than 105,000 people with financial assistance for food, bedding, clothing, loss of income and costs for those who had to leave home.

A dedicated 0800 line was set up to support New Zealanders impacted by these events, and more than 180,000 calls were answered on this line alone, providing nearly 50,000 hours of phone support.

MSD also deployed staff to the National Crisis Management Centre. As cyclone response and recovery took focus during this time, MSD resources were temporarily reprioritised in impacted areas.

In response to the North Island weather events, MSD enacted the Enhanced Taskforce Green (ETFG) recovery programme that is now operational in five MSD regions: Northland, Auckland, Waikato, East Coast and Central. As at the end of June 2023, there were 14 teams deployed with a total of 89 jobseekers who had come off a main benefit and into work to assist their communities.

In June 2023, Te Tairāwhiti Gisborne experienced more severe weather. MSD again stepped up to support the CDEM sector and started Civil Defence Payments from 26 June 2023.

Improve support to people, whānau and families in hardship or insecure housing

We supported progress towards resetting and redesigning the Emergency Housing System

In 2021 and 2022, MSD and the Ministry of Housing and Urban Development (HUD) undertook a review of the emergency housing system. The review found that challenges have built up over decades and that it will take time to shift to an ideal state where emergency accommodation is rarely needed, and when it is, that stays are brief and non-recurring. The long-term solutions rely on more supply of affordable public housing.

In December 2022, Cabinet agreed to all 10 key actions recommended in the review, with MSD responsible for implementing seven of the 10 actions. The work programme to reset and redesign the emergency housing system is focusing on an initial 12-to-18-month transition period, and then fully implementing all 10 actions.

MSD and HUD will focus on increasing alternatives to emergency housing, setting standards for emergency accommodation, and improving support services to achieve better outcomes for people in urgent need of housing.

We continued to provide housing support

Improvements to Housing Support Products (HSPs) were launched in March 2023. HSPs are grants to help people stay in their private rentals, or to secure private rentals, thereby reducing the need for emergency housing.

Consolidating various one-off housing-related assistance into a single programme and increasing the amount of assistance people can receive has improved the support available to people with one-off housing costs (bonds, rent in advance and rent arrears) who are covered by the Residential Tenancies Act 1986.

We helped people stay in their homes or access suitable accommodation

Over 2022/23, demand for emergency housing decreased. At the end of June 2023, there were 3,513 households (comprising 3,900 adults and 3,501 children) receiving an Emergency Housing Special Needs Grant compared to 4,116 households as at 30 June 2022.

A range of factors may have contributed to the decrease in demand for emergency housing. Recent increases to main benefit levels may have improved the affordability of rental accommodation for MSD clients. Changes to the Residential Tenancies Act have reduced the frequency of rent increases and improved security of tenure for renters. A cooling housing market over much of 2022/23 saw rents plateau or increase more modestly than in recent years.

As at 30 June 2023, there were 29,745 applicants on the Public Housing Register compared to 32,172 applicants as at 30 June 2022. The decline in the number of applications over 2022 is partly attributable to the additional resource and tools dedicated to register management, which has seen MSD increase the frequency of contact with applicants.

Case study

A phone call to MSD leads to life-changing outcomes for whānau

A whānau living in social housing (who were given two weeks’ notice to leave) had their lives changed with support from MSD.

Mary (not her real name) got in touch with MSD to request a social housing assessment for herself and her three children. While awaiting this assessment, Mary and her whānau were provided with emergency housing. MSD also encouraged Mary to attend a Ready to Rent Programme, where she was introduced to an MSD housing broker, work broker, and a training provider, EmployNZ.

Mary obtained a range of support after attending the programme, and within two weeks of the whānau moving into emergency housing, Mary was supported to secure a home and find part-time work that will transition into full-time employment.

Mary’s teenagers are also making major changes – they’ve enrolled to sit their driver licences, are studying with EmployNZ, and have interviewed for job vacancies close to their new home. Her youngest child is back at school after not attending for quite some time.

Putanga tuarua: He aumangea ngā tāngata o Aotearoa, otirā e noho ana ki ngā hapori kauawhi, tautoko hoki | Outcome two: New Zealanders are resilient and live in inclusive and supportive communities

As the leading social sector agency for all New Zealanders, we recognise and respect the diversity of the people, whānau and families, and the communities we serve, and are committed to improving their wellbeing.

We are improving access to skills, tools and resources to help New Zealanders respond better to challenges in their lives. We also partner with other groups and agencies to support communities to be more inclusive, supportive, safe and well-equipped to meet the needs of individuals, families and whānau.

Our work in 2022/23 included delivering on Budget 2022 initiatives that increased support to community-based partners, including:

• funding for Building Financial Capability (BFC) providers to continue improving people’s financial capability and reducing their risk of financial hardship
• supporting Crown-Māori partnerships that seek to realise the aspirations of iwi, hapū and whānau, and iwi and Māori-led wellbeing, for example, Te Hiku o te Ika Iwi and Ngāi Tūhoe relationship agreements.

Improve the safety and strength of people, whānau, families and communities

We prioritised the safety and wellbeing of New Zealanders in their communities

We worked collectively across government as a Te Puna Aonui agency to continue implementing the current Action Plan of Te Aorerekura – the National Strategy to Eliminate Family Violence and Sexual Violence.

MSD is leading five actions in the current Action Plan:

• Action 12: Build tools for communities and informal helpers
• Action 21: Deliver prevention initiatives: Campaign for Action on Family Violence, E Tū Whānau and Pasefika Proud as well as for other population groups including older people
• Action 23: Develop prevention programmes for ethnic communities
• Action 29: Develop a plan to fill the service gaps for family violence
• Action 30: Develop a plan to fill the service gaps for sexual violence.

To support implementation of the Action Plan, MSD:

• launched the youth campaign, Love Better, aimed at fostering safe, positive and equal relationships, and Change is Possible, an approach to mobilising positive change in men
• improved the immediate support available for all people impacted by family violence, including through expanded online help tools and with specialist, child-focused support for children in eight Women’s Refuge sites across the country
• supported the delivery of services for adult victims/survivors and perpetrators of sexual violence, including strengthening and improving the accessibility of Kaupapa Māori specialist sexual violence support focused on long-term and sustainable healing.

We helped support the financial capability of people and whānau

We supported the delivery of BFC services to help people and whānau to improve their financial wellbeing. This included investing $3 million to support increased demand on these services in response to cost-of-living pressures.

We strengthened access to government and community services for rural communities

Providers and community groups supporting remote communities were funded through the Provider and Community Capability funding to develop and strengthen their workforce and organisational capability, and to fund leases for office space, vehicles to access remote communities etc.

We worked with providers and communities to redesign and strengthen Heartland Services, so people who live in rural and isolated areas of New Zealand can better access government and community services.

We supported whānau and communities to thrive

We increased investment in E Tū Whānau to support whānau and communities to build capability, wellbeing and resilience. Support focused on healing intergenerational trauma and helping to embed positive actions to support violence-free lives, alongside hui promoting best practice through whanaungatanga and kotahitanga.

We have continued to progress the actions outlined in Pacific Prosperity, our Pacific Strategy and Action Plan.

The Nga Vaka o Kāiga Tapu Online Pacific Cultural Competency Programme was launched in August 2022. It was designed specifically for family violence practitioners working with Pacific families and to help frontline workers understand and apply Pacific cultural concepts in their work.

We are also supporting the Kiribati, Tuvalu, Fiji and Tokelau communities to deliver their ethnic-specific wellbeing plans.

Case study

Supporting rangatahi leadership and action in South Auckland

Ōtara Youth Hub (OYH) is a dedicated youth hub in the centre of the largely Māori and Pasifika South Auckland community it serves. It’s a place of connection, advocacy and support to uplift and celebrate the local spirit, resilience and brilliance within Ōtara.

Since opening in 2020, OYH has been supported by MSD’s E Tū Whānau programme as part of its priority focus on rangatahi development, and its values of Aroha, Whanaungatanga, Mana manaaki, Tikanga, Kōrero awhi and Whakapapa.

The OYH Manager says they incorporated the E Tū Whānau values in their founding principles and it empowers them to do everything with mana.

OYH connects young people to each other, their aspirations, and real-world opportunities and experiences. OYH also provides a safe space where rangatahi are free to hang out, access technology, make use of the self-directed careers kiosk, or get support writing a CV, gaining a driver licence, and navigating pathways into education or employment.

Other initiatives include the Ōtara Youth Hub Leadership Army – a movement of diverse young people who take action in their community to make it better for themselves and others. They run weekly wānanga, waiata and kapa haka sessions for kuia and kaumātua at a local retirement home, organise sporting and cultural activities, and co-ordinate food sharing schemes.

Picture above shows E Tū Whānau Kaimahi, Swanie Nelson, with OYH rangatahi serving and entertaining the residents at an Ōtara retirement home.

We supported people with disabilities to have their say

In August 2022, the Accessibility for New Zealanders Bill passed its first reading. This Bill provides for an Accessibility Committee to accelerate accessibility by removing the barriers that prevent disabled people, tāngata whaikaha Māori, their families or whānau, and others with accessibility needs from being fully included and participating in society.

MSD helped analyse more than 500 public submissions on the Bill and developed a departmental report on the Bill, before transferring the project lead to Whaikaha – Ministry of Disabled People.

During the Select Committee process we helped the Committee to improve its own processes by making information available in alternate formats, providing New Zealand Sign Language (NZSL) interpreters and extending the length of oral submissions.

MSD also began a review of the New Zealand Sign Language Act 2006 on behalf of Whaikaha – Ministry of Disabled People, using an NZSL-first consultation process. The proposed amendments aim to support the promotion, learning, maintenance and use of NZSL.

We supported community participation and wellbeing services for disabled people

We provided $88 million to organisations that provided community participation services. These services are accessed by around 10,000 disabled people a year to support their community participation and inclusion.

We supported programmes to change the lives of seniors

In early 2023, the Minister for Seniors, supported by the Office for Seniors, launched three programmes which help the implementation of the Better Later Life Strategy:

• Senior Enterprise – a pilot programme supporting people over 50 with business ideas, providing training and mentorship to boost the skills, confidence and market knowledge needed to help start their own businesses and promote financial security.
• Digital Literacy Training – a programme focused on delivering culturally appropriate digital skills training to diverse groups of older people, including a specific focus on older Pacific peoples. Building digital literacy skills helps to reduce the digital exclusion experienced by as many as one in four older people who do not regularly access the Internet.
• Homeshare – a pilot programme for a shared housing option that supports older homeowners to accommodate another adult. Participants can benefit from home support, income assistance and company while being able to maintain independence and remain in their own homes.

We helped young people to thrive

The Ministry of Youth Development (MYD) has funded youth development and youth enterprise programmes to deliver over 82,000 opportunities to young people aged 12–24. This included:

• implementing the (Youth Development) Full-Time Equivalent Youth Worker/Practitioner Pilot aimed at increasing their one-to-one contact time with young people with more complex and urgent needs
• He Kākano, an MYD partnership with the Prince’s Trust Aotearoa New Zealand to provide seed funding, mentoring support, entrepreneurial skill development and shared support services to young people
• the Ākonga Youth Development Community Fund (Ākonga Fund), which supports ākonga (learners) to stay engaged in their education journey.

When MYD surveyed young people on the impact of the youth development and youth enterprise programmes they participated in, 85 percent of respondents reported they had seen an improvement in their outcomes.

We supported young people to lead and have their say

MYD continued to enable key initiatives that supported young people (aged 12–24) to lead and have their voices heard on the issues that mattered most to them. This included:

• refreshing the Youth Plan – MYD, with support from the MYD Youth Advisory Group, engaged with more than 1,400 young people to inform the refresh of the Youth Plan, which focuses on uplifting the whai wāhitanga of young people through two focus areas: voice and leadership
• Youth Parliament 2022 – which supported 139 young people aged 16–23 over a six-month tenure from March to August 2022 to participate in the Youth Parliament programme as Youth MPs, Youth Press Gallery members and a Youth Clerk
• The Hive – an innovative model that aims to increase young people's participation in policy development, including demystifying politics and political processes.

We provided support for youth engagement and crime prevention

MSD continued to work with other agencies to help targeted regions provide holistic wellbeing support for children, young people and their whānau in response to the rise in youth crime (specifically ram raids, fleeing drivers and other serious offences).

The Government announced the Better Pathways package on 6 September 2022 that aims to place more young people in education, training or work to reduce youth crime. Initiatives included further funding for He Poutama Rangatahi and the Ākonga Fund.

Working in collaboration with local councils, we helped distribute $6 million from the Proceeds of Crime Fund to support community crime prevention initiatives and programmes, and youth engagement initiatives.

We developed tools and resources to strengthen social cohesion

Following the Royal Commission of Inquiry into the Terrorist Attack on Christchurch Mosques, and recommendations to improve social cohesion in New Zealand, Te Korowai Whetū Social Cohesion was launched in October 2022. This MSD-led kaupapa is in response to the Report of the Royal Commission of Inquiry, and recommendations to improve social cohesion in New Zealand.

To support the building and maintenance of a society where all people, whānau and communities can connect and feel a sense of belonging, MSD developed a package of tools and resources including a strategic framework, measurement framework, government work programme, information sheets and a time-limited $2 million community grant fund. These tools and resources can be used by anyone – from government agencies and non-government organisations, to individuals, communities, businesses and workplaces.

We supported vulnerable communities through emergency response periods

Throughout the response to COVID-19, Community Connectors and community food providers were at the forefront of the Care in Community (CiC) welfare response.

Community Connectors worked with individuals and whānau to understand their immediate needs, address barriers and connect them to various services available during and in transition from self-isolation. This funding was time limited until 30 June 2023.

Following the North Island weather events, Cabinet agreed to expand the scope of the Community Connectors to support the response and recovery. In the affected regions, Community Connectors are providing support to communities, whānau and individuals, with a focus on welfare and food support, social and mental health services, and employment.

To continue supporting communities, through Budget 2023, funding was provided from 1 July 2023 to retain:

• 100 Community Connectors around the country until 30 June 2025
• an additional 65 Community Connectors in regions impacted by the North Island weather events until June 2024.

Improve how we connect and partner

We are leading Social Sector Commissioning

MSD is leading the implementation of the Social Sector Commissioning Action Plan 2022–2028, which was launched in October 2022. The objective of the Action Plan is to support a move towards using a relational approach to commissioning social services, so that it becomes standard practice across government by 2028.

This year we have:

• engaged widely to identify good practice in relational commissioning in action
• established a cross-government community of practice
• supported government agencies in the development of plans to adopt relational commissioning
• developed a monitoring and learning framework.

We continued to process applications for redress through our Historic Claims service

Historic Claims provides an alternative redress process to the Courts for people who were harmed while in the care or oversight of Child, Youth and Family or its predecessors. We continued to work with claimants to provide options to resolve their claims, offer them the opportunity to tell their story, provide access to support, and offer acknowledgment through a settlement payment and an apology.

In response to the recommendations from the Royal Commission of Inquiry into Abuse in Care, the Government agreed to develop a rapid payment assessment option for use within existing claims processes to address long wait times for claimants, with an initial focus on those who are ill, elderly or have been waiting the longest. Since Rapid Payments were introduced in late 2022, more than 70 percent of claimants offered a Rapid Payment chose this option.

We supported the legislation for the Oversight of the Oranga Tamariki System and Children and Young People’s Commission

MSD is the administering agency for the Oversight of Oranga Tamariki System Act 2022 and the Children and Young People’s Commission Act 2022. Both Acts are designed to strengthen the oversight of the Oranga Tamariki System (the system that is responsible for providing services or support to children, young people, and their families and whānau under, or in connection with, the Oranga Tamariki Act 1989). This is carried out through independent monitoring and assurance of operations and obligations led by Aroturuki Tamariki – Independent Children’s Monitor, oversight and investigation of complaints led by the Ombudsman, and system-level advocacy for all children and young people in New Zealand led by the Children and Young People’s Commission.

The Independent Children’s Monitor was established as a business unit of MSD in 2019. On 1 May 2023, the Oversight of Oranga Tamariki System Act came into force establishing Aroturuki Tamariki – Independent Children’s Monitor as a departmental agency hosted by the Education Review Office.

The Children and Young People’s Commission Act established the Children and Young People’s Commission on 1 July 2023. It replaces the Office of the Children’s Commissioner and is responsible for advocating for the rights of children and young people.

Putanga tuatoru: Ka uru mārika ngā tāngata o Aotearoa ki ngā mahi porihanga, otirā ka whāia te iti kahurangi | Outcome three: New Zealanders participate positively in society and reach their potential

We work to help New Zealanders to reach their potential, grow and participate positively in society.

We do this by connecting people with employment, education and wellbeing opportunities, as well as support services. We also recognise that the opportunities we provide need to be inclusive, so we work with individuals, families, whānau and communities to understand their aspirations and what is important to them, including their situation, culture and values.

To continue ensuring that all New Zealanders can participate positively in society and reach their potential, our work in 2022/23 included delivering on Budget 2022 initiatives that invested in training and better employment outcomes for New Zealanders including:

• providing access to driver licences for disadvantaged groups
• continuing to support Māori through employment programmes such as Māori Trades and Training
• continuing employment support linked to industry for at-risk jobseekers through Mana in Mahi.

Improve people’s readiness for work, including through training and education

We continued to support people into work

Helping New Zealanders move off benefits and into work results in better outcomes for them and their whānau. Across our service centres and contact centres, frontline staff have continued to support New Zealanders to find and secure employment.

We have a range of investments to support people into work, such as employment case management and employment programmes.

As at 30 June 2023, a total of 84,100 people were supported into work.

Employment case managers

Our employment-focused case managers give clients comprehensive, wrap-around support, connecting with products and services that can assist them to work. Our work brokers work closely with employers to connect clients to job opportunities, using their knowledge of the local job market to benefit both clients and employers.

Flexi-wage

The Flexi-wage subsidy is used to support people at risk of long-term benefit receipt or disadvantage in the labour market into jobs where they may not meet requirements for the role. MSD pays a wage subsidy to employers, while participants gain training and develop work skills that support them into lasting employment.

The Flexi-wage expansion, which began in 2021, has supported a broad range of people into work. A total of 27,873 people have taken part in Flexi-wage since its expansion in February 2021, including 10,293 people in 2022/23.

Māori Trades and Training Fund

Māori Trades and Training Fund (MTTF) programmes that support Kaupapa Māori projects offer employment-based training alongside support services, such as pastoral care. The Fund includes funding for organisational development to ensure that communities grow their capability to provide support and services. As at June 2023, 63 projects have been approved and MTTF programmes have supported 858 people.

Mayors Taskforce for Jobs

The Mayors Taskforce for Jobs (MTFJ) is a nationwide network of New Zealand’s Mayors working together towards the vision of all young people aged 16–25 engaged in employment, education, training or other positive activity in their community. Since 2020, MSD has had a strategic partnership with MTFJ to deliver employment programmes in rural and provincial New Zealand that has supported more than 5,000 predominantly young people into employment. In 2022/23, the programme delivered 1,706 contracted outcomes across 33 councils.

Jobs and Skills Hubs

Jobs and Skills Hubs are a one-stop construction and infrastructure shop, supporting major projects with their recruitment and training needs and helping local people to take up local jobs. As at June 2023, five hubs are operational: three in Auckland, one in Hawke’s Bay and one in Lower Hutt. A pop-up hub is planned for Te Tairāwhiti Gisborne to assist with the response and rebuild following the North Island weather events. As at 30 June 2023, the hubs have produced 1,361 training outcomes, 310 employment placements and 55 apprenticeships.

Driver Licence Support

Gaining a driver licence can significantly reduce barriers to employment. The Driver Licence Support programme ensures there is a strong system in place to assist people to get their licence where barriers are in place. Through a range of partnerships, 11,694 people began a Driver Licence Support programme in the last year, 50 percent being Māori and 17 percent Pacific peoples. Improvements have been made to Driver Licence Support programmes. Contracts across the country have been confirmed to deliver support to 15,000 people in 2023/24.

We progressed work to strengthen the Active Labour Market system

Active Labour Market Programmes (ALMPs) support people who have varying degrees of attachment to the labour market to enter, remain in, or return to, suitable work. Building on the review of the ALMP system with the Ministry of Business, Innovation and Employment (MBIE) and the Ministry of Education in 2021, this year we began to address gaps identified in the review:

• to improve or develop further support for economically displaced workers
• to increase the range and scale of ALMPs for disabled people
• to strengthen consistency of monitoring and evaluation of ALMPs.

We supported disabled people into work

The Oranga Mahi suite of programmes supported disabled people, including those with health conditions, to move closer to the labour market and enter employment. The range of programmes included:

• Individual Placement and Support (IPS) – a health and employment service for people managing severe mental health conditions
• E Ara E Take Charge – an adapted IPS service for young people (aged 18–24) with common mental health and addiction issues
• Here Toitū – a health and employment service to help people recognise their potential, get well, and find meaningful work
• Rākau Rangatira – a Kaupapa Māori health and employment service for people with mild-to-moderate mental health and addiction issues
• virtual services that work alongside other supports (clinical counselling) and a coaching and mentoring service.

During 2022/23, 2,118 people were supported through an Oranga Mahi programme. MSD also funded a coaching programme, Te Heke Mai, to provide wrap-around support to people looking for work, in training or starting new jobs. The programme uses behavioural change models and positive psychology.

In 2022/23, there were 1,196 new participants, and of those, 657 were MSD clients. Fifty-nine percent of people entered employment after successfully participating in Te Heke Mai.

We supported young people into employment

MSD delivered a range of initiatives to help young people into employment, including Mana in Mahi, Apprenticeship Boost and He Poutama Rangatahi.

Mana in Mahi helps people who need additional support to get paid jobs while gaining a formal industry qualification. MSD pays a wage subsidy to the employer and provides participants with incentive payments and ongoing support along the way. As at 30 June 2023, there has been a total of 6,180 placements with 1,002 of these during 2022/23.

The Apprenticeship Boost Initiative supports apprenticeships which are an important component of the education, employment and training system, and participating in one can make a critical difference in the careers of young people. The Apprenticeship Boost Initiative supports employers with retaining and taking on new apprentices as the economy recovers from the impacts of COVID-19. This means employees will be able to continue to work and progress towards their qualifications. As at 30 June 2023, 59,273 apprentices have been paid over the lifetime of the programme. In 2022/23, $67.5 million was paid, $31.3 million of which was paid to first-year apprentices and $36.2 million to second-year apprentices.

He Poutama Rangatahi is a work-readiness and skills initiative for young people (aged 15–24) who are hard to reach and most at risk of long-term unemployment. He Poutama Rangatahi helps with individualised and ongoing support into training and employment. He Poutama Rangatahi also funds the development of community providers to build capacity and ensure a sustainable future of support for rangatahi. As at 30 June 2023, 50 projects have been funded and 1,116 rangatahi supported.

MSD has supported young people in their final years of school to explore vocational career options through the Education to Employment service. This service funds vocational co-ordinators who work with almost 300 schools and kura across the country and employers in their local community, helping students through individual support as well as events.

We published insights to inform future policy work supporting youth employment

MSD, MBIE, the Ministry of Education and the Ministry for Women released the Long-term Insights Briefing: Preparing All Young People for Satisfying and Rewarding Working Lives in June 2023 as required under the Public Service Act 2020.

The briefing identifies opportunities to improve education and employment system responses to support youth employment outcomes in the medium and long term. The possible future directions identified are to assist agencies to focus on delivering more equitable employment outcomes and create more effective pathways into sustainable work for populations such as rangatahi Māori, young Pacific peoples, young disabled people and young mothers. In turn, this could also support young people to achieve better outcomes in other areas such as housing, health, and overall individual and whānau wellbeing.

Improve sustainable employment outcomes

We supported people at risk of displacement from work

We responded early to support people at risk of redundancy or other forms of job loss through the launch of Early Response: Redeployment Support in April 2022. As at June 2023, 800 people were supported into employment or training. We have also helped 4,633 people through the Rapid Return to Work Service and 10,704 through the Direct Career Service as at June 2023.

We supported disabled people to gain sustainable employment

We continued to support disabled people and people with a health condition to gain sustainable employment and move closer to financial independence. Support in 2022/23 included:

• Specialist Employment Service – 4,695 people were supported to gain paid employment and received ongoing support
• Mainstream Programme and Internships (paid directly to employers) – this helped 78 disabled people gain paid work experience
• Support Funds – 745 people were helped to meet any additional costs disabled people may face when undertaking training or employment.

Administration of Support Funds was transferred from Workbridge to MSD in March 2023.

Improve our contribution to business and regional development

We supported the Regional System Leadership Framework

Each region across New Zealand has its own unique combination of strengths and challenges, and we know that New Zealanders are more likely to thrive when they are served by a joined-up Public Service. As the Secretary of Social Development, Debbie Power is designated as the System Lead, Regional Public Service.

The Regional System Leadership Framework was introduced in 2019, with 11 Regional Public Service Commissioners (RPSCs) being appointed to cover 16 regions. In February 2023, a Deputy RPSC was appointed in Te Tairāwhiti Gisborne to support cyclone recovery.

The work of RPSCs was important during COVID-19 and has continued to play a critical role in supporting the response and recovery in areas affected by the North Island weather events in 2023.

RPSC achievements this year include:

• cyclone response
• the launch in Taranaki of a Co-Response Team pilot to address mental health callouts in the community
• the facilitation of a partnership with Murihiku Hapū in Otago, to bring together four local rūnanga on the Murihiku Regeneration project, as part of efforts to build a regenerative economy for future generations
• work in Hawke’s Bay with councils, iwi, the Ministry for the Environment and the Department of Conservation on the Build Back Better Strategy.

Case study

Solo mum kicked her career into top gear

Solo mum of two, Sarah Hubbard, has kicked her career into top gear with support from her new employer and MSD’s Mana in Mahi initiative.

Previously a business owner hit hard by the pandemic, Sarah was thrilled to learn of the career opportunities in the automotive industry. She started an auto-parts merchandising role in mid-December 2022 with Rouse Motorcycles.

“After selling my business, I struggled to find a role to suit my young family – I had to consider other options. While it’s a male-dominated industry and I had no experience, I was met with flexibility, understanding and the opportunity for career progression.”

Co-founder of Rouse Motorcycles, Shayn Rouse, says Sarah’s potential was evident from the start, and she was shoulder-tapped to complete her Level 3 NZ Certificate in Automotive Parts and Accessories.

“Sarah took to the role quickly, so study was a natural progression that we wanted to support. MSD’s Mana in Mahi investment covered the bulk of the training costs including the course fees and a laptop for her online modules.”

The 22-month training programme facilitated by the Motor Industry Training Organisation (MITO) includes a mix of practical training and e-learning, allowing students to complete theory elements at their own pace.

Sarah is one of almost 6,180 people who were supported into employment through Mana in Mahi by the end of June 2023.

Ngā pāpātanga ahuwhānui | Overarching impacts

Improve equity of outcomes, particularly for Māori

Over the past year MSD has worked to improve equity of outcomes, particularly for Māori, through a range of initiatives. Below are two examples of our mahi.

We supported the release of a Māori Values Framework

As part of the Government’s welfare overhaul work programme, MSD commissioned a Māori Values Framework to embed in the welfare system to guide its design and operation. The Māori Values Framework was produced for MSD by Ngā Mātanga Māori, a group of eight mātauranga Māori experts who have a broad range of knowledge in te ao Māori and the policy and legislative levers required to enact change. The framework was proposed by Ngā Mātanga Māori in their March 2023 advice, He Tūtohu nā Ngā Mātanga Māori.

MSD is currently embedding the framework internally, and is using the framework to give effect to its own strategy, Te Pae Tawhiti. Once this has been achieved, consideration will be given to whether the framework can be embedded into the wider welfare system, beyond MSD.

We supported Māori wellbeing through partnerships and accords

We have effective relationships with iwi and Māori that are fundamental to realising Māori Crown partnerships and a key component for MSD being able to meet the Crown’s commitments under Te Tiriti o Waitangi.

MSD leads the following Iwi-Crown relationship agreements (on behalf of the Crown):

• Te Hiku o te Ika Iwi – Crown Social Development and Wellbeing Accord
• He Tapuae – Ngāi Tūhoe Service Management Plan
• Koiora Accord (Waikato-Tainui).

MSD also has other relationship agreements that it supports, including those with:

• Heretaunga Tamatea
• Ngāti Maniapoto
• Ngāti Rangi
• Parihaka
• Tātau Tātau Wairoa
• Taranaki Whānui ki te Upoko o te Ika a Māui
• Te Rūnanganui o Ngāti Porou
• Waikato-Tainui (Kiingitanga).

Improve people’s trust and confidence in the welfare system

Over the past year MSD has worked to improve people’s trust and confidence in the welfare system through a range of initiatives, including the examples below.

Reducing debt to government

As part of the Debt to Government work programme, MSD continued to work with Inland Revenue to support people who have debt with both agencies. This included increasing staff knowledge and capability on each agency’s products and services, to improve the client experience and help ensure they are getting the support they are eligible for.

We also implemented a system change that enables us to auto-correct benefit payments when there is a late income declaration from a client.

As at 30 June 2023, the total debt balance owed to MSD was $2.5 billion (2022: $2.4 billion). While we have a legislative duty to take all reasonable steps to recover debt, our overall approach is to support people to manage their debt in a sustainable way.

Recouping Wage Subsidy overpayments

COVID-19 Economic Supports were established in March 2020, to keep workers and employers connected during elevated COVID-19 alert levels and lockdowns. As at 30 June 2023, over $19.7 billion had been paid out in Wage Subsidy and Leave Support payments, supporting an estimated 1.8 million jobs.

The Wage Subsidy was a high-trust scheme providing rapid payments upfront to businesses affected by COVID-19 restrictions so that employers could continue to pay their employees. The aim was to help prevent job losses and business closures, with employers undertaking to pass payments on to staff in wages.

MSD remains committed to providing assurance that those who received payments were eligible for them. The Wage Subsidy Fraud and Integrity Programme includes investigations, post-payment checks, requests for repayment, civil recovery and, in the more serious cases, prosecutions where there is evidence deliberate fraud was involved.

As at 30 June 2023, $819.6 million was recouped.

By 30 June 2023, MSD had:

• progressed civil recovery action in relation to 31 businesses, of which 10 have been filed in court
• progressed prosecution action in 48 cases, of which criminal charges have been filed in 37 cases involving around $3 million in subsidy payments
• referred 11 more complex or significant cases of alleged fraud to the Serious Fraud Office.