MSD's baseline funding won't be cut - English

Updated at 5:45 pm on 2 August 2012

Finance Minister Bill English says the Government is not considering cutting baseline funding to the Ministry of Social Development as part of its welfare reforms.

Cabinet papers indicate that a portion of the ministry's baseline funding could depend on its performance in moving people off welfare.

Mr English says some of the ministry's funding will be performance-based but only in areas where it is specifically tied to getting people off long-term welfare, and baseline funding will be unaffected.

Earlier, Labour's social development spokesperson, Jacinda Ardern, said the ministry is already financially stretched and performance-based funding could plunge it into a funding crisis.

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