Not the whole story

Susan St John, champion of welfare for children, telling us half the story,

Child Poverty Action Group economist Susan St John said the Budget made no effort to make it easier for beneficiaries to work by lifting the $80 a week limit on income they can earn before the benefit is reduced - a limit that had not changed for 22 years.

Limits for earned income have changed for those on the dole (who might also have dependent children.)

Until 1996 an unemployed person could receive the maximum benefit and earn NZ$50 (or $60 for beneficiaries with dependent children) a week before the benefit was abated. Under current arrangements an unemployed person can earn an income of $80 a week before the benefit is abated.

And although the $80 limit wasn't changed, for those on the DPB and WB, the amount of benefit lost between $81 and 180 was reduced from 70% to 30% for those with a youngest child over 14 in 2003. From the MSD press release,

This change to a social development approach is supported by the introduction of a new single abatement rate for DPB/WB clients allowing them to keep a greater proportion of any income they receive while on the benefit.

DPB/WB clients will be able to earn up to $80 a week on top of their benefit with no affect on their main benefit, and income between $80 and $180 reduces the benefit by 30 cents for every dollar received and by 70 cents for every dollar received over $180.

There are increases coming in the family support for beneficiaries with children. Family support is becoming a really big ticket item of government expenditure.

These are the figures from 2003-09 (actual to forecast)

$862 833 846 1,285 1,699 2,081 2,132

So as usual the CPAG are ignoring increases in assistance in order to strengthen their case for greater redistribution. Sadly it's what you come to expect from beneficiary advocacy groups.