There was much speculation that this would be the budget that would radically transform the way the government funds and delivers social services. In a speech made earlier this year, Finance Minister Bill English hinted at a new budget process: rolling out the ‘social investment approach’ to areas beyond welfare.
 
We have seen no such thing with this Budget. The increase in benefits could provide some relief to families in hardship. However, cash increases and childcare assistance (tempered with more demanding work obligations) for beneficiaries will not address the complex problems these populations face.
 
What we need is long-term solutions, and an acceptance that the state cannot pull people out of poverty alone.
 
More comprehensive reforms are expected over the coming years, with emphasis on contracting for outcomes, greater private sector involvement, and establishing an evidence base for policies. The New Zealand Initiative’s latest work on Social Impact Bonds looks at how these new reforms could deliver better results for taxpayers, social service providers, and vulnerable populations.