Tauranga beneficiaries with children will be required to look for work under new government welfare reforms starting next month.

As the first stages of the government's welfare reforms get underway in March, solo parents on the DPB, widows and woman's alone benefit with children aged five and older will be required to actively look for part-time work.

Solo parents with children over the age of 14 will be required to be available for full time work, while parents who have a subsequent child on the benefit will also be required to be ‘work ready' after their child turns one.

The new reforms were announced by the government on Monday and are aimed at reducing the 351,000 people in New Zealand currently on a benefit, which costs the state $8billion a year.

Tauranga Chamber of Commerce is welcoming the changes to the welfare reforms with CEO Max Mason saying welfare dependency is a national priority with local implications.

'Stage one of the reform package incentivises young beneficiaries to get into work or training which is positive.

'Gaining skills in parenting, budgeting and job hunting is also a step in the right direction.

'Timing is going to be very important to the success of this reform, because the economy needs to pick up so there are jobs available.

'In the Bay of Plenty the building industry is still depressed and there are still concerns about Psa so there are some concerns there.

'The economy is slowly picking up but it is not going to be easy for mums with children under five, or 14 to find jobs in the area.

'Hopefully as these reforms are phased in the job market will pick up.”

Young people will also be affected by the new welfare reforms which target 16-17-year-olds on a benefit and parents up to the age of 18.

These young people will no longer be handed a welfare cheque each week, instead essential costs such as rent and power will be paid directly to the supplier.

Living costs such as groceries will be loaded onto a payment card, which will be monitored to ensure it is not used to purchase cigarettes and alcohol.

Money will also be given to training providers to work with young people to ensure they are in education, training or work.

These young people will be required to be in education or work based training to be eligible to receive a new youth payment, replacing the current youth benefit.

The government is also offering youth an incentive scheme whereby they are eligible for an extra $10 a week, on top of a weekly $50 allowance, for completing a budgeting course, or young parents can get an extra $10 a week for completing a parenting course.

Max says there is a high youth unemployment rate in the Bay of Plenty and employers need to understand that flexibility is critical to successful employment.

'Employers, businesses need to be helping these people into the workplace; this may involve going the extra mile, mentoring them on the job and helping them to learn new skills.

'On the employers side flexibly listening to parental needs is likely to result in good quality employees and greater loyalty.

'Job seeking employees on the other hand have to realise that they may not get the exact job or location they desire.”

He says there are a number of job and education providers in the BOP including the Chamber of Commerce that aid in job training.

'There are a lot of solo mums out there who want to get back into the workforce, it can be very tough for them, they have lost a bit of confidence.

'We provide them with training, role-play exercises. At the end it is fantastic to see these people blossom and start to have a positive attitude about finding work.”

The reform includes a Guaranteed Childcare Assistance Payment, so childcare costs do not stop young parents from studying.

The first Bill to the welfare reform will be introduced in March, with youth changes beginning to take effect from the end of July.