5. SUE BRADFORD (Green) Link to this
to the Minister for Social Development and Employment
When he announced “more good news for 1 April”, in a media release on benefit changes, why did he omit to mention the abolition of the special benefit from that date?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
My announcement in “more good news for 1 April” was about the cost of living increase in benefits and student allowances. It was not about the replacement of the special benefit with temporary additional support.
What steps, if any, is the Minister taking to make sure that people who are new to the benefit system after 1 April this year will be able to survive, given the reductions in income that will occur when special benefits are cut?
Hon DAVID BENSON-POPE Link to this
First of all, I think it is important to stress that beneficiary families have already received an increase in assistance from Working for Families of, on average, around $32 per week in the first year of that package. They will get a further increase of $10 per week per child in April 2007. I also assure the House that the announcements that were made about the grandparenting of current entitlements have not changed.
Georgina BeyerAre these cost of living changes to benefits and student allowances in addition to the increases announced in the Working for Families package?
Hon DAVID BENSON-POPE Link to this
Yes, and I am pleased to say that already 196,500 families receive family assistance from the Inland Revenue Department or the Ministry of Social Development, with an average weekly payment to working families of $108. Changes involving targeted tax relief from 1 April will see an estimated 85,000 additional middle-income families become eligible for family assistance tax credits. That brings the total number of New Zealand families benefiting from the Working for Families package to 348,000 families.
What advice on survival will the Minister be giving to people such as sickness beneficiaries who do not have children, who manifestly will not have enough to live on after the special benefit is abolished on 1 April?
Hon DAVID BENSON-POPE Link to this
The Government is currently in the process of designing further reforms to benefits, and they will be brought to the House at the appropriate time.
What steps is the Minister taking to ensure that the Ministry of Social Development is doing everything it can to tell eligible beneficiaries that they can still, at this time, access the special benefit until 31 March, and that if they are on the special benefit by then, their individual entitlement will be secure into the future?
Hon DAVID BENSON-POPE Link to this
These changes were announced in 2004. Work and Income does ensure that clients who are affected by changes are very well informed.