Conclusions

The annual information match between MSD and the Department provides information on the extent of benefit receipt of recent migrants, including retrospective information allowing the analysis of trends in benefit receipt over time.

From this study, we gather that the overall benefit receipt of migrants has declined significantly over recent years (i.e. the benefit rate was significantly lower in 2007 than in 2002). In 2007, the benefit rate was at its lowest for both the Skilled/Business and International/Humanitarian Streams, whereas the benefit rate of the Family Sponsored Stream peaked in 2004 and fell back in 2007. The reduction in the overall benefit rate was even more substantial when looking at new migrants. These rates were at their lowest for all residence streams. The benefit rate for recent migrants also fell over 2002-2007.

The reductions in the benefit rates can be attributed to the New Zealand economy going through a sustained period of growth and falling unemployment over the 2002 to 2007 period. Also, changes in immigration policy (closing some categories, introducing additional criteria and support requirements to others, English language requirements and the introduction of SMC and Pacific Access/Samoan Quota) and the introduction of specific settlement support services to migrants and refugees have contributed to less reliance on benefits and better outcomes for more recent migrants and refugees.

The largest single source of migrants in receipt of a benefit was the Family Parent Category. Their share had increased over the 2002-2007 period; however, most Family Parents in receipt of a benefit in 2007 had been in New Zealand for more than five years. Furthermore, the benefit rate for new Family Parent migrants has fallen over 2002-2007.

The majority of migrants receiving a benefit within two years of being approved for residence had come in under the International/Humanitarian Stream and were predominantly refugees. Refugees are likely to meet the hardship criteria for emergency benefits as they are not required to agree to support themselves or others when they come to New Zealand. Others were from countries for which New Zealand has reciprocal arrangements negating the two-year residency requirement.

Compared to the overall migrant beneficiary population, those approved for residence under the Skilled/Business Stream had a lower benefit rate, and unlike the overall migrant beneficiary population, the majority of migrant beneficiaries approved under this category were in receipt of the UB. Overall, a very small number of Skilled/Business migrants were accessing benefits.

The EB was the most common benefit type, constituting almost half of all migrant beneficiaries. This is likely due to several reasons. First, generally, migrants must have resided in New Zealand consecutively for two years to be eligible for a statutory benefit. The EB can be granted to those who are ineligible for other benefit types through not meeting this time restriction. Second, the EB is the most common benefit type of those approved through the Family Parent Category. This is partly due to the ten-year residence requirement to be eligible for New Zealand Superannuation.

Between 2002 and 2007, there was a significant increase in those receiving an SB. The proportion in receipt of the SB rose over 2002-2007. This increase is, in part, due to a higher proportion of migrants eligible for statutory benefits in 2007 than in 2002. Also, although the scale is different, this trend is consistent with the general benefit population where numbers in receipt of an SB grew over this time period.

China was the most common nationality of migrants in receipt of a benefit. This should be considered in the context that China is also the second largest source of migrants overall. Generally, the migrant profile of beneficiaries matches that of migrants overall. The exception is where a high proportion of migrants from a particular country are refugees, for example, Iraq, Somalia, Afghanistan and Cambodia.

The findings show that it is likely that a combination of positive economic conditions, changes to immigration policy and the introduction of settlement support initiatives by MSD and the Department have all contributed to a reduction in the benefit rates of recent cohorts of migrants. These results will continue to inform policy development within the Department and the Ministry of Social Development.