In debt to WINZ

Tuesday I received the following figures released under the Official Information Act. 62,500 DPB beneficiaries owe money to WINZ.

Across all working age beneficiaries the percentage of people in debt to WINZ is fifty one (155,000). For DPB recipients however, the percentage rises to fifty nine. The mean amount owed is $502.

In the 2004/05 year, thirty seven percent of the newly established debt was due to grants. The balance was made up of debt established by Benefit Control and Data Matching (23 percent) and overpayments established by WINZ (40 percent).

Two thirds of those owing money were female. Forty eight percent were Maori or Pacific Island. Only seventeen percent had some other kind of income aside from a benefit and over 6,000 people were not making any repayments.

The really worrying aspect of this situation is this debt is only part of the picture. Like non-beneficiaries, many of these people will have money owing on creditcards, on hire purchase agreements, to loan sharks, etc.

Not only is being on a benefit a lifestyle for many, so is being in debt.

(These figures were current at November 30, 2005.)