Wellington, Oct 21 NZPA - The Auditor-General's office has called on the Social Development Ministry to improve its monitoring of a programme aimed at returning more beneficiaries into work.

In late 2007 the ministry put into practice changes to improve how it determined eligibility for sickness and invalid benefits, and to manage cases through regular contact with recipients.

The aim of the changes was to provide appropriate services and support to beneficiaries so they could return to work, and stay there, if able.

By 2010/11, the changes were expected to result in savings of $49 million each year.

Auditor-General Phillippa Smith said in a report released today that an audit, done last year, showed the ministry had been slow to initiate its intended regular and effective contact with many beneficiaries.

It hadn't implemented a client management system and had not secured all the contracts for new health services.

"Although the changes were starting to take effect, they were not being delivered consistently."

While the ministry had come under extra pressure due to the recession, it was advised to improve how it monitored the effect of the changes so it could analyse the programme's effectiveness.

Social Development Minister Paula Bennett welcomed the report, but pointed the finger at the previous Labour government for not getting the programme off the ground properly.

Ms Bennett said the report confirmed changes being made since the election were heading in the right direction.

As at September 30 there were 85,015 people on an invalid's benefit and 56,384 receiving the sickness benefit.