Major spending decisions

Regular progress updates are published for the below initiatives as part of the Government’s requirements for reporting on major spending decisions.

Employment Services – Investing in Frontline Staff and Employment Programmes (Budget 2025)

This initiative enables the Ministry of Social Development (MSD) to maintain critical employment spending for the next two years, to help get more people into work and make progress towards the Jobseeker Reduction Target. Time limited funding of $343.300 million has been allocated using the joint Treasury and MSD invest-to-save framework and net savings of $147.255 million are forecast.

Further information regarding the initiative, including a breakdown of the costs and savings, can be found on our website.

Deliverables and planned timeline

The initiative contains three key components:

• Maintaining current levels of case management – the initiative funds the continuation of 490 time-limited frontline staff, primarily case managers. This funding begins on 1 October 2025 when the previous time-limited funding for these staff is due to expire, and lasts two years until 30 September 2027.
• Continuing employment programmes – the initiative enables MSD to continue delivering key employment programmes. Funding began on 1 July 2025 given previous time-limited funding expired at the end of the 2024/25 financial year, and lasts two years until 30 June 2027. This includes the following programmes:
  • Flexi-wage
  • Regional Employment Placement Programmes
  • Here Toitū and Individual Placement and Support
  • Skills for Industry.
• Expanding Community Job Coaching – the initiative also funds an expansion of Community Job Coaching for up to 6,000 clients. These clients will also be eligible for bonus payments if they remain off-benefit for 12 months.
  • This funding began on 1 July 2025, and lasts two years until 30 June 2027.
  • Contracts for the new Community Job Coaching service will commence by November 2025.
  • Year one will deliver the service to 4,000 young Jobseeker clients, expanding to up to 6,000 in year two of the programme.

Intended results

The primary outcome of this funding will be that employment services and programmes support a greater number of people off benefit and into work which will support the Jobseeker Reduction Target, getting more New Zealanders into employment and participating in the economy.

Indicators of performance and value for money

MSD provided a monitoring and evaluation plan for the initiative to the Minister for Social Development and Employment and the Minister of Finance at the end of June 2025.

1) Employment interventions that are a continuation of services

Short-term indicators

Exits from a main benefit into employment.

Medium - long-term indicators

Sustained employment.

Where possible, the effectiveness rating^[1] of each of the employment programmes funded by the Budget 2025 initiative.

This information will be updated annually and available via the Employment Assistance Evidence Catalogue.^[2]

Most of the programmes funded by this Budget 2025 initiative have existing evidence of effectiveness which can be found in the Employment Assistance Evidence Catalogue. Some programmes have an effectiveness rating of ‘too soon to rate’ and will be able to be evaluated for effectiveness once there have been sufficient participants through the programme and enough elapsed time for the outcome to be observed.

2) Employment case management

Face-to-face case management was found to be effective at achieving employment outcomes when it was last evaluated in 2019.^[3]

MSD will monitor the effectiveness of case management, including for priority cohorts.

3) Expansion of Community Job Coaches

The expansion of Community Job Coaches funds 4,000 contracted places in 2025/26, expanding to 6,000 in 2026/27. It includes bonus payments to participants who remain in employment for 12 months. MSD is currently working through the procurement process with providers and expects to begin working with participants by November 2025.

Short-term indicators

1. The number of participants in the year to date of reporting
2. Exits from a main benefit into employment.

Medium – long-term indicators

1. The number of clients who received a bonus payment for remaining in employment for 12 months after exiting benefit
2. The effectiveness rating^[1] of Community Job Coaches (including bonus payments).

^[1] _{Effectiveness is measured against up to five outcome domains: net income earned, time in employment, highest qualification gained, time in corrections services, and income support expenditure.}
^[2] _{Employment Assistance Evidence Catalogue}
^[3] _{Cost effectiveness of intensive case management services from October 2012 to July 2017}

Frequency of reporting

As part of the Government’s requirements for reporting on major spending decisions, MSD is required to publicly report on this initiative twice-yearly on our website, and annually in our Annual Report (beginning in 2026).

MSD will also report on this initiative to the Minister for Social Development and Employment and the Treasury as part of the quarterly reporting on the Jobseeker Reduction target.

Apprenticeship Boost (Budget 2024)

Progress updates

Apprenticeship Boost is a multi-agency collaboration. The Ministry of Education is responsible for its policy, the Tertiary Education Commission checks eligibility, and MSD manages applications and payments.

Progress updates will be managed by the Ministry of Education and MSD will contribute to these.

Updates will be published on the Ministry of Education's website once every 6 months, starting in June 2025.

About Apprenticeship Boost

Apprenticeship Boost was first introduced in August 2020 as part of the Government’s wider Apprenticeship Support Programme. It was a cross-agency response to help support apprentices and employers to manage the impacts of COVID-19.

Apprenticeship Boost was made permanent in Budget 2024.

From 1 January 2025, Apprenticeship Boost will support first year apprentices only, in industries with identified skills shortages.

You can find out more about Apprenticeship Boost, and which industries are targeted, on the Tertiary Education Commission and Ministry of Social Development’s websites.