Regulatory Impact Statement

Transcription

1 Regulatry Impact Statement Future Fcus changes t the welfare system Agency Disclsure Statement 1 This Regulatry Impact Statement has been prepared by the Ministry f Scial Develpment. 2 It prvides an analysis f ptins t make specific plicy changes t the rules, bligatins and incentives prvided t welfare recipients t help mre peple mve int wrk. 3 The key assumptin underpinning this analysis is that wrk will becme available fr peple as the ecnmy recvers and that the implementatin f the wrk-test can be matched t the emplyment capacity in lcal labur markets. 4 There is n research currently available which accurately quantifies the size f the behaviural respnse frm these changes in plicies. This prevents estimates, with the degree f accuracy required, frm being made f the number f peple wh will mve frm benefit t wrk ver a year, as a result f the prpsed changes. The inability t determine firm numbers f peple shifting frm benefit t wrk as a result f these changes is due t the difficulty f separating ut the effect f the plicy changes frm the effect f changes in ther influences such as ecnmic and labur market settings (e.g. emplyment grwth, minimum wage increases). Sme brad estimates f magnitude can be made based n previus experiences f similar plicy changes. The Ministry f Scial Develpment will als mnitr and evaluate the package f changes t determine, t the extent pssible, the impact f these changes. 5 The ptins have been develped under an assumptin that the verall package f changes must be affrdable within current budget cnstraints. 6 The plicy ptins being cnsidered are nt likely t have direct effects n impsing csts n businesses, impairing private prperty rights r market cmpetitin that the gvernment has said wuld require a particularly strng case befre regulatins are cnsidered. There may be small indirect impacts n sme businesses where the changes impse a cst n an individual e.g. remving childcare subsidies frm sme high incme families r requiring an additinal medical certificate fr Sickness beneficiaries. Sue Mackwell Deputy Chief Executive Ministry f Scial Develpment Date:

2 Status qu and prblem definitin The welfare system 7 The Scial Security Act 1964 (the Act) sets ut criteria fr the payment f benefits and the assciated bligatins. There are several main benefit payments with differing eligibility requirements. These are: Unemplyment Benefit (UB) fr peple aged 18 years r mre wh are ut f wrk and available fr full-time wrk; Dmestic Purpses Benefit fr: sle parents with dependent children (DPB-SP); single wmen wh meet age and family criteria wh are ut f wrk (DPB-WA); peple wh are caring full-time fr peple wh are sick r disabled (DPB-CSI); Sickness Benefit (SB) fr peple wh are unable t wrk full-time due t ill health r disability; Invalid s Benefit (IB) fr peple wh have a severe and permanent incapacity that is expected t last lnger than tw years; Widw s Benefit (WB) fr wmen wh are n lnger in a relatinship due t the death f their partner; Independent Yuth Benefit (IYB) fr 16 and 17 year lds wh are ut f wrk and unable t rely n financial supprt frm their parents. 8 The Act currently requires wrk-testing fr peple receiving UB and sme wrk-ready partners f peple n ther benefits. These wrk-test bligatins are backed up with a sanctins regime. UB beneficiaries are required t negtiate a Jb Seeker Agreement setting ut their agreed wrk test activities. 9 Fr DPB, WB, SB and IB there are prvisins that may require these grups t plan fr persnal develpment and future emplyment, backed up by a separate sanctins regime. The agreed activities are set ut in a Persnal Develpment and Emplyment Plan, which may als include wrk-related activities required by Wrk and Incme. 10 IYB beneficiaries are required t meet a yuth activity test that cvers educatin and/r wrk. The agreed activities are set ut in a Yuth Activity Plan. 11 Exemptins frm wrk-tests, planning and activity tests apply in specified circumstances. 12 If a beneficiary receives ther incme, such as frm wages, then the rate f benefit is reduced accrding t the abatement rules in legislatin. An abatement-free threshld is set at $80 a week fr all benefits. Peple receiving UB, SB, IYB and nn-qualifying rate f New Zealand Superannuatin (NZS) have their net benefit payment abated at 70 cents fr every additinal dllar f ther incme. Peple receiving DPB, WB, and IB have their net benefit payment abated at 30 cents fr every dllar f ther incme between $80 and $180 a week. Fr incme ver $180 a week, the net benefit payment is abated at 70 cents per dllar earned. These threshlds have nt been adjusted fr sme time while minimum and average hurly wage rates have increased, meaning they are nw cnsiderably lwer in real terms than when they were set. 2

3 13 Varius frms f ne-ff hardship assistance are prvided with authrity, rules and bligatins set ut in the Scial Security Act 1964, Ministerial Welfare prgrammes established under the Act, and Ministerial Directin. Assistance is prvided in accrdance with brad guidelines fr case managers t fllw. An immediate and essential need must be established befre a payment is made. Where a ne-ff hardship payment is recverable, the recipient is required t repay the amunt ver time therwise there are n specified requirements fr peple receiving payments. The ttal spending n ne-ff hardship assistance has increased significantly as a result f plicy changes t fd grants, the increase in benefit numbers and the ecnmic recessin. 14 The rates f NZS and Veteran s Pensin (VP) are required t be amended by the Cnsumers Price Index (CPI) by prvisins in legislatin. Other main benefit rates have been adjusted by CPI by Cabinet cnventin and are nt required t be adjusted by legislatin. The incme threshlds f Childcare Assistance (CCA) are adjusted by CPI in legislatin and the rates f CCA by CPI by cnventin. Number f peple dependent n welfare 15 The numbers f peple n SB, IB and DPB as a percentage f the wrking age ppulatin are frecast t increase and impse a significant cst n future generatins. Numbers n SB and IB, as a prprtin f the wrking-age ppulatin, rse frm arund 1% in the mid 1970s t almst 5% tday. While the numbers f peple n UB fell t recrd lws ver the perid frm 2002 t 2007 when the ecnmy experienced grwth and labur shrtages were recrded, the numbers n DPB and SB did nt fall as much and numbers n IB cntinued t increase. A significant prprtin f the fall in DPB numbers can als be attributed t financial incentives t wrk fr sle parents thrugh the Wrking fr Families tax credits. If lng-term trends in SB and IB cntinue they may reach arund 7% f the wrking-age ppulatin by The 2008 ecnmic recessin has seen the numbers f wrking-age peple n UB, SB and DPB increase again. Cmparing numbers frm the end f December 2007 t December 2009, UB numbers increased frm 22,748 t 66,328, DPB numbers increased frm 98,154 t 109,289 and SB numbers increased frm 49,093 t 59,158. Wrk and Incme wrk actively with peple t ensure that peple return t wrk as sn as pssible. The wrk that they d cnsistently results in a larger reductin in benefit numbers than is frecast thrugh the ecnmic and fiscal updates. The service mdel that they have initiated is recgnised internatinally as very effective in assisting peple int emplyment. 17 Apart frm the rising fiscal csts n taxpayers, there are high scial csts as lng-term welfare dependency has negative impacts n individuals and their families. Beneficiaries are highly represented in measures f pverty, hardship and pr health. Labur market cnditins 18 The labur market was strngly affected by the five quarters f ecnmic recessin with increases in the unemplyment rate and the numbers f peple n benefit. Since December 2007, emplyment has fallen and the unemplyment rate has risen t a seasnally-adjusted ten year high f 7.3% frm its histrical lw f 3.5% in late Yuth, Mari and Pacific peples have been particularly affected by the rise in unemplyment. The unemplyment rate fr Mari is 15.4% fr the year t December 2009 and the unemplyment rate fr Pacific peple is 14%. The unemplyment rate fr year lds is 18.4% fr the year t December Recent business cnfidence surveys are 3

4 shwing imprvements, and ecnmic grwth is expected t be psitive if relatively subdued ver the next tw years. 20 A recvery in the labur market has traditinally lagged behind a recvery in the ecnmy. This may again be the situatin as sme emplyers have reprted retaining staff ver the recessin perid in anticipatin f a recvery and plan t use the excess staff capacity t meet the initial increase in business demand. Gvernment bjectives 21 The Gvernment s main aim fr the changes is t reinfrce the expectatin that peple wh can wrk shuld wrk. Peple n benefits shuld have the expectatin and the pprtunity t receive the financial and scial advantages f participating in the wrkfrce, including peple with health prblems r disabilities. 22 The package f changes seeks t reinfrce the imprtance f reciprcal bligatins fr peple receiving welfare supprt, such as finding wrk, undertaking educatin r training, planning r budgeting. The Gvernment s bjective is a welfare system that is fair fr everyne, fr thse receiving the assistance as well as t taxpayers wh are prviding the assistance. Overall, it seeks t create a welfare system that des nt encurage peple t remain n welfare lnger than they have t but t find and take up wrk, and that cntinues t prvide supprt t peple in genuine need. 23 In changing the welfare system t achieve the desired utcmes, the ptins have been develped t be affrdable within current budget cnstraints. Regulatry impact analysis 24 The manifest package aims t reinfrce the fcus n wrk and help mve peple frm benefit dependency t paid wrk. The package includes the fllwing areas f plicy changes: Obligatins and sanctins a part-time wrk test fr DPB-SP with a yungest child aged six r lder and, at a later date, fr thse n SB wh are able t wrk part-time; a new graduated sanctins regime that increases in severity fr each failure, with safeguards that prtect beneficiaries dependant children; reinfrced jb seeking bligatins fr thse n UB, with the ability t negtiate a Jb Seeker Agreement remved. Educatin will becme the pririty fr yung peple receiving IYB, wh will nt be able t negtiate the preferred activity; Tightening access and active assessment beneficiaries wh have been n UB fr 12 mnths will need t reapply and cmplete a cmprehensive wrk assessment; DPB-WA benefit will be phased ut and new applicants wh wuld therwise qualify will need t apply fr ther benefits such as UB; eligibility criteria fr receiving IB will be mre strictly applied t ensure that peple n this benefit genuinely require it; imprved management f SB thrugh a secnd fur-week medical assessment perid fr SB and a review after 12 mnths n SB; 4

5 imprved management f hardship expenditure by increasing expectatins f the mre frequent applicants, including undertaking budgeting activities; Incentives, supprt and training an increase in the abatement threshlds fr DPB, WB, IB, incme-tested nnqualifying spuse and partners f New Zealand Superannuatin (NZS) and Veteran s Pensin (VP) and peple under the age f 65 receiving VP, will reward thse wh wrk part-time; training and supprt fr DPB-SP t get back t wrk including new schlarships and lans t gain qualificatins in the health and cmmunity sectr; remving sme f the barriers t the prvisin f ut f schl care, t assist DPB- SP parents subject t the wrk test; Other Changes reducing Childcare Assistance incme threshlds back t 2008 levels and remving indexatin f the incme threshlds ging frward; intrducing legislatin t prvide certainty that the main benefit rates and Student Allwance rates will be increased by Cnsumers Price Index (CPI) each year; 25 Optins were cnsidered where apprpriate. In particular: Obligatins and Sanctins The applicatin f graduated sanctins: Status qu: The status qu ptin f suspensin, then cancellatin, prvides insufficient warning and because f that Wrk and Incme staff have been lath t use it. Fr this reasn, the current sanctin regime is less effective than it shuld be. Graduated sanctins nly fr part-time wrk bligatins. There is n particular reasn why the new regime shuld nt equally apply t full-time wrk tested beneficiaries, further this ptin wuld still leave staff lath t utilise sanctin in respect t full-time wrk-tested beneficiaries. This ptin is mre cmplex and harder t understand. Graduated sanctins fr all wrk bligatins. This ptin prvides a clear message that all bligatins are serius. It is als viewed as mre equitable, as well as prviding a mre effective respnse. Fr sanctins t be effective they need t be understd. Fr the abve reasns, this ptin was favured. In relatin t penalties fr failing a wrk test under the graduated sanctins regime: 1st failure 20% sanctin, 2nd failure 50% sanctin, 3rd failure benefit suspensin. The 20% first failure sanctin was seen as t weak a deterrent. Als multiple reductins add cmplexity and was therefre seen as likely t be less effective. 1 st failure 20% sanctin, 2 nd failure benefit suspensin, 3 rd benefit cancelled (fr 13 weeks). The 20% first failure sanctin was seen as t weak a deterrent. Als multiple reductins add cmplexity and was therefre seen as likely t be less effective. 1 st failure 50% sanctin, 2 nd failure benefit suspensin, 3 rd failure benefit cancelled (fr 13 weeks). This ptin was favured as being cnsistent with verseas research shwing the mst effective sanctins were simple and prvided the clearest signal t beneficiaries. 5

6 Tightening access and active assessment Phasing ut f n lnger apprpriate benefits t make prvisins cnsistent fr men and wman (and the BORA): Remve DPB-WA and WB. Phasing ut DPB-WA wuld prvide cnsistency in the treatment f men and wmen in similar situatins f having cmpleted caring fr children r elderly relatives and remve a relatively recent ptential frm f discriminatin in the welfare system. Phasing ut WB wuld be a significant change f a lng-standing part f the welfare system. It wuld require cnsideratin f what, if any, bligatins shuld apply in a perid after the death f a partner. If this is t be reviewed, it is cnsidered that public cnsultatin wuld be needed. Hwever, meaningful public cnsultatin culd nt be cmpleted befre the required legislative changes are intrduced. Remve DPB-WA benefit nly. This ptin is favured as it makes prgress in respect t BORA issues and reinfrces the expectatin that peple wh shuld wrk, are required t wrk. Tightening access t Invalid s Benefits: Tightening eligibility criteria in legislatin t exclude treatable cnditins. The disadvantage f this apprach is that it wuld need a clear definitin f what is and/r what isn t treatable. Such a definitin is nt deemed pssible as less tangible factrs are imprtant in vercming many cnditins. This ptin wuld als increase pressure t access services already in shrt supply, such as drug, alchl rehabilitatin, and mental health services. Tightening the definitin f a permanent cnditin t mre than tw years. There is n ther bvius time limit that culd be used t replace the tw year time limit. Tightening eligibility by applying existing criteria mre strictly. This ptin is seen as a wrkable and effective way t tighten IB eligibility, while still ensuring thse wh need IB assistance get it. Tightening access t Sickness Benefits: Applying the secnd fur-week medical assessment n a discretinal basis nly. This ptin wuld enable the exclusin f pregnant wmen, which wuld be a mre efficient use f medical assessments. Hwever, such discretin wuld likely result in incnsistent implementatin. Applying the secnd fur-week medical assessment t all SBs. This ptin is slightly inefficient, in that it will require pregnant wman t get a secnd medical assessment (when that wuld nt nrmally be necessary). Hwever, it des tighten eligibility and has the advantage f assuring a cnsistent apprach. Evidence shws that early reassessment can help return t wrk (which in turn is shwn t have psitive effects n health and wellbeing). Reviewing lng-term eligibility t Sickness Benefits: Getting a secnd pinin fr all Sickness Beneficiaries at 12 mnths. This ptin is seen as inefficient and cstly. It wuld currently be extremely difficult t resurce because f an insufficient number f designated dctrs. Lng-term sickness beneficiaries are likely t have ther barriers t emplyment, e.g. lw qualificatins, lw mtivatin r cnfidence. Other activities are likely t be mre effective at reducing such barriers. 6

7 Applying a cmprehensive review after 12 mnths. This ptin prvides an pprtunity t gain a secnd pinin thrugh a designated dctr after 12 mnths n benefit, where this is apprpriate. It recgnises the additinal cst f getting a secnd ptin and prvides case managers with a range f ptins fr addressing the issues f sickness beneficiaries. It recgnises the advantage f getting peple ff sickness benefit as sn as pssible. Increasing expectatins f frequent hardship applicants: Cmpulsry referral t budgeting advice fr all clients after three grants. This ptin was nt favured as it wuld verwhelm budgeting services and wuld nt be an efficient use f resurces peple culd be referred t face-t-face services when they d nt need this level f supprt t imprve budgeting skills. Vluntary budgetary advice, with cmpulsin as a last resrt. This ptin wuld result in a lwer take-up f budgeting services (reducing strain n budget services) but wuld nt have prvided a sufficiently strng message abut the need fr clients t imprve their budgeting skills when they have received a certain number f grants. Cmpulsry referral t a budgeting activity fr all clients after three grants. This apprach has the strng messaging assciated with cmpulsin while allwing clients t undertake budgeting activities that are apprpriate t them (e.g. cmpleting their wn budget, attending budgeting seminars, face-t-face advice). This ptin des nt allw discretin t exempt peple frm a budgeting activity requirement in exceptinal circumstances (e.g. when they are in hspital, r managing their finances well and have experienced a misfrtune like a huse fire). Cmpulsry referral t a budgeting activity fr all clients with discretin t exempt clients in exceptinal circumstances. This apprach has the strng messaging assciated with a cmpulsry requirement while allwing clients t undertake budgeting activities that are apprpriate t them (e.g. cmpleting their wn budget, attending budgeting seminars, face-t-face advice). Mrever, this ptin allws discretin t exempt peple frm a budgeting activity requirement in exceptinal circumstances (e.g. when they are in hspital, r managing their finances well and have experienced a misfrtune like a huse fire). This ptin is favured as it prvides a range f effective interventins, an element f cmpulsin t prvide strng messaging, while allwing fr discretin in exceptinal circumstances. Incentives, Supprt and Training Imprving wrk incentives by reducing abatement: Increasing the $80 abatement-free threshld fr all benefit types. This ptin has a significant assciated cst. This ptin wuld have reduced the incentive fr peple receiving UB and SB t mve int full time wrk the preferred utcme fr these clients. Including different abatement-free threshlds fr cuples and singles. This ptin wuld address ptential issues f discriminatin. Hwever, this ptin was fund t have substantial additinal csts. Increasing $80 abatement-free threshld fr DPB, WB, IB, NZS/VP nly. This ptin has lwer assciated csts and increases the incentive fr thse able t undertake part-time wrk t d s, while nt lessening the incentive fr UBs and SBs t mve int full-time wrk. 7

8 Increasing the $180 part-time abatement threshld fr DPB, WB and IB t $200. This ptin has relatively lw csts and further increases the incentive fr peple n these benefits wh can wrk part-time t d s. Fr these reasns, this ptin was favured, in additin t the ptin abve. Legislatin t prvide certainty in respect t the annual CPI indexatin f main benefits: Cnsultatin Legislating nly in respect f main benefits (cnsistent with Natinal s manifest cmmitment). This ptin had slightly lwer assciated cst but des nt prvide certainty fr all thse relying n scial assistance as their primary surce f incme. Legislating in respect f main benefit, Student Allwances, Unsupprted Child Benefit and Orphans Benefit and Fster Care Allwance. This has a slightly higher assciated cst, but prvides certainty fr all thse relying n scial assistance, as their primary surce f incme. 26 Treasury, Te Puni Kkiri, the Ministry f Pacific Island Affairs, the Ministry f Wmen s Affairs, the Ministry f Health, the Department f Labur, the Accident Cmpensatin Crpratin, the Ministry f Educatin, the Tertiary Educatin Cmmissin, the Ministry f Justice and Inland Revenue have been cnsulted n an earlier versin f the suite f Cabinet papers. The Department f Prime Minister and Cabinet has been infrmed. 27 Mst departments are bradly supprtive f the package. The Ministry f Educatin requested that analysis be undertaken n the impacts f the Childcare Assistance changes n Early Childhd Educatin prviders. Treasury raised cncerns ver the intrductin f a part-time wrk-test fr peple n Sickness Benefit and the prpsed schlarships. The Ministry f Wmen s Affairs raised cncerns ver the remval f DPB fr wmen alne, especially the remval f the grandparenting prvisin after five years. The Ministry f Pacific Island Affairs and Te Puni Kkiri raised cncerns ver the impact n lw incme Pacific and Mari families frm sme f the changes. The Ministry f Health raised cncerns ver the wrklad pressure n GPs frm the increase in numbers f SB assessments and the subsequent impact n Vte Health funding. The Office fr Disability Issues has highlighted the need t prvide supprt fr disabled peple t take up and remain in wrk. Several departments cmmented n the need fr training and skills develpment t enable beneficiaries t find well paying sustainable wrk. 28 The majrity f the prpsals were in the Natinal Party s manifest, made public prir t the 2008 electin. Frmal cnsultatin has nt been undertaken with nn-gvernment agencies r beneficiary grups. Beneficiaries, individuals and rganisatins with an interest in the welfare system will have the pprtunity t prvide submissins t the relevant Select Cmmittee n the prpsals when the amending legislatin is cnsidered by Parliament. Cnclusins and Recmmendatins 29 The current welfare system is nt ensuring that beneficiaries wh can wrk are encuraged t find and btain wrk, particularly thse n lnger-term benefits. A range f changes are 8

9 required t help peple t mve frm welfare int wrk and t ensure that the welfare system is fair t everyne. The ptins need t take accunt f the likely behaviural respnses frm peple and avid unintended cnsequences such as encuraging peple t switch benefits within the welfare system t avid bligatins. The changes need t be affrdable within the current budget cnstraints. Implementatin 30 There is traditinally a lag between when the ecnmy recvers and when the number f jbs increases. T manage the timing f implementatin and the labur market recvery, Wrk and Incme (a service delivery arm f the Ministry f Scial Develpment) will implement the changes using a staged apprach, targeting the mst wrk-ready grups first. The fcus will first be n the part-time wrk-test fr DPB-SP and at a later date will be expanded t include peple n SB wh are assessed as able t wrk part time. Case managers in Wrk and Incme will wrk with a mix f wrk-ready DPB-SP clients and thse with mre cmplex needs. Initially, the majrity f clients will be wrk-ready with this mix shifting ver time. 31 Wrk and Incme will actively wrk with DPB and SB grups in advance f the wrk test using existing legislative pwers fr planning fr a return t wrk. As the new wrk test prvisins are applied, lessns frm early experience will be captured and resurces shifted as the ecnmy recvers. 32 Amending legislatin is planned t be intrduced in March 2010 with an indicative implementatin date frm 4 Octber The phasing f the changes are set ut in the table belw. Prpsed Dates Actin 25 March 2010 Legislatin paper cnsidered 29 March 2010 Bill intrduced July 2010 Wrk and Incme actively wrking with DPB and SB grups in advance f wrk test August 2010 Bill passed 4 Octber 2010 DPB fr sle parents part time wrk test begins Jb Seeker Agreement, IYB agreement changes in effect Abatement changes in effect Graduated sanctins in effect Hardship mdel begins t be phased in UB reapplicatins at 12 mnths in effect DPB fr wmen alne clsed t new applicants and entitlement remved in five years time fr existing recipients CCA incme threshlds reduced and indexatin remved with grandparenting fr three years IB stricter eligibility criteria applied 2 May 2011 SB part time wrk test in effect SB reassessment f beneficiaries at 8 weeks and 12 mnths in effect 9

10 Mnitring, evaluatin and review 33 The Ministry f Scial Develpment will clsely mnitr and evaluate the impact f the Future Fcus changes against the package s primary bjective f getting peple int wrk. Mnitring 34 MSD will cllect data n a range f indicatrs that will be affected by Future Fcus changes befre the implementatin f the package. This infrmatin will be used t establish a baseline that will be used t measure changes in indicatrs as Future Fcus is implemented. 35 Mnitring f these indicatrs will prvide infrmatin abut hw beneficiaries are respnding t Future Fcus, e.g. hw many peple are mving int wrk, hw much time peple are spending n benefit and hw many peple are receiving different benefits. 36 MSD will prvide regular reprts n a range f indicatrs t the Minister fr Scial Develpment and Emplyment and ther interested Ministers. These reprts will include relevant infrmatin frm ther agencies where this is available, e.g. labur market infrmatin frm Statistics New Zealand, infrmatin n mvement int wrk frm Inland Revenue, and data n training participatin frm the Ministry f Educatin. 37 The indicatrs that will be mnitred and reprted include: Part time wrk test, abatement changes and planning fr wrk number f beneficiaries declaring incme, and changes t their earnings exits frm benefit fr wrk number f part-time wrk tested beneficiaries wh have had an emplyment engagement with a case manager, and the utcme number f beneficiaries wh have develped an Emplyment Plan (fr thse with a child under six) number f beneficiaries wh have been exempted frm wrk testing, and the reasns Reapplicatin prcess fr lng term unemplyed number f beneficiaries wh have received Unemplyment Benefit fr mre than 12 mnths and were required t undertake the reapplicatin prcess utcme f re-applicatins and number f clients wh have exited benefit after the re-applicatin prcess Tightening the assessment f Invalid s and Sickness Benefit numbers f grants and declines fr IB and SB, ttal numbers receiving IB and SB, and flws between these and ther benefits Sickness Benefit reassessment number f clients wh have had a new medical certificate SB drp ff rates and flws between SB and ther benefits 10

11 Training numbers f schlarships granted, number f interest free lans granted, and utcmes fr recipients, e.g. mving int emplyment Graduated sanctins numbers and details f sanctins Graduated hardship mdel numbers f clients referred t different types f budgeting activities numbers and details f hardship grants (e.g. the Wrk and Incme Payment Card). 38 Infrmatin frm indicatrs will als be used internally by the Ministry f Scial Develpment t infrm and imprve the implementatin f the Future Fcus package. As the package is implemented indicatrs may be added r mdified t imprve the usefulness f the infrmatin. Evaluatin 39 Evaluatin will fcus n the impacts f the tw changes that are expected t the mst significant impact n mving clients int wrk - the new part-time wrk test (fr clients receiving DPB fr sle parents and peple n SB) and the re-applicatin prcess fr peple wh receive UB fr a year r lnger. 40 The evaluatin f Future Fcus changes will ccur in tw phases: phase ne will fcus n evaluating the way the package is implemented t ensure that each cmpnent is being implemented effectively phase tw will fcus n evaluating lnger-term utcmes including the effectiveness f different parts f the package at getting peple int wrk. 41 As far as pssible the evaluatin will use methds that take int accunt changing ecnmic cnditins. 11