Paula Bennett

Wellington, May 25 NZPA - The Government is citing a new report, outlining the general health merits of being in the workforce, as extra justification for welfare reforms announced in March.

The report, Realising the Health Benefits of Work, compiled by the Royal Australasian College of Physicians, says there is compelling evidence that for most people general health and wellbeing is improved by working, and psychological distress is reduced.

"Even health problems that are frequently attributed to work -- for example, musculoskeletal and mental health conditions -- have been shown to benefit from activity-based rehabilitation and an early return to suitable work," the report said.

The results of worklessness were obvious: loss of self-esteem, standing and identity within the community, and a halt to material progress, social participation and fulfilment.

The longer people were off work the bigger physical and mental toll, and the harder it was to return. The report suggested there was a lot of scope to treat many beneficiaries back into work.

It also said there was a need for the message about health and work to be ingrained in the general public and for support structures to be put in place so stakeholders could ensure people were not excluded from the benefits of work. That was not happening to the extent it should be.

"Knowing that good work is generally good for health, government, medical and allied professionals and employers all have the opportunity to substantially improve health and wellbeing outcomes for Australians and New Zealanders, including those groups and communities who are most vulnerable," the report said.

Social Development Minister Paula Bennett said the new evidence underscored the need for welfare reform.

"It is time to address welfare dependence in this country and part of that means changing attitudes to work," she said.

Ms Bennett said the Social Development Ministry's Welfare Working Group was investigating the issue of long-term welfare dependence and the growing numbers of people on benefits in New Zealand.

In the 10 years to March the number of people receiving a sickness benefit grew by 23,663 (73 percent) and the invalids benefit by 31,681 (59 percent).

Ms Bennett said the ballooning benefit list was partially because of an aging population, but also due to a shift from unemployment benefits into invalids and sickness benefits.

Work was being done to address those shifts and the rate had recently slowed significantly. That work included tightening the portal from one benefit to another and arranging for part time work testing of those on the sickness benefit.

The Welfare Working Group was "looking harder at international models of how we might do it differently", Ms Bennett said.

The welfare reforms announced in March include more active management of long-term beneficiaries and requiring them to reapply every 12 months.

Sanctions include benefit cuts to those who don't genuinely attempt to find work or train for it, as well as more rigorous assessments of sickness beneficiaries by shortening the period between medical checks.