New Zealand's Ministry of Social Development gives sole parents on welfare — over 80% women — dedicated, work-focused case managers. A 2019 evaluation of 2012–2017 found returns of about $3.40 per $1 spent, with more durable job outcomes than other jobseekers.
3.40 $ per $1 spent
Return on investment (Oct 2012–Jul 2017, published June 2019)
17.5 years
Average years on benefit before intervention (n/a)
93.3 NZ$ million over 2 years
New funding committed (Budget 2026) (2025/26–2026/27)
190.5 NZ$ million
Projected savings (n/a)
25,000 sole parents
Sole parents to be reached by expanded case management (n/a)
81,500 people
People remaining on Sole Parent Support (March 2026)
80+ %
Share of Sole Parent Support recipients who are women (n/a)
Details
Maturity
Established
Promoter
Ministry of Social Development (MSD)
Period
2012–present
Keywords
employment services, social welfare, lone-parent activation, gender-responsive labour policy
Context
Sole Parent Support (formerly the Domestic Purposes Benefit) is New Zealand's main welfare payment for parents raising children largely on their own; the great majority of recipients are women, and without targeted support many face very long benefit spells — an estimated average of 17.5 years on benefit before intervention, according to the Ministry of Social Development's own Budget 2026 documentation.
Activities
Under the intensive case management model, MSD assigns sole parents a dedicated, work-focused case manager who combines tailored employment planning, training referrals and in-work support, going beyond generic jobseeker case management.
Results
A June 2019 MSD evaluation of intensive case management delivered between October 2012 and July 2017 found returns on investment of around $3.40 for every dollar spent, and that sole parents who moved into work through this approach remained off benefit for longer than other jobseeker groups. Building on this evidence, Budget 2026 committed a further $93.3 million over two years (2025/26–2026/27) to extend case-management capacity to 25,000 sole parents, with projected savings of $190.5 million.
Conclusions
As of March 2026, around 81,500 people remained on Sole Parent Support, showing continued high welfare reliance despite the programme's decade-long track record; the $3.40 return-on-investment figure comes from MSD's own internal investment-approach modelling rather than an external, independently published evaluation, a limitation worth weighing alongside the positive results.
Implementation
Indicative cost
Medium (€50k–€500k)
Time to results
Long (> 3 years)
Staffing & skills
Delivered by the Ministry of Social Development, Each sole parent assigned a dedicated, work-focused case manager combining tailored employment planning, training referrals and in-work support
Conditions for success
Case management goes beyond generic jobseeker support with tailored employment planning and in-work support
Sustained, repeated government funding (extended again in Budget 2026)
Common failure modes
The $3.40 return figure comes from MSD's own internal investment-approach modelling rather than an external, independently published evaluation
As of March 2026 around 81,500 people remained on Sole Parent Support, showing continued high welfare reliance despite the decade-long programme
Where it fits
Governance type
national government (Ministry of Social Development)
Scale
national
Commonly funded by
National / regional programmes
Indicative funding routes for practices of this type — always check each programme's current calls and eligibility rules.
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Data sources
Where this practice's information was retrieved from, and when.
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