Benefit growth continues

Acting Social Development Minister Judith Collins, issued a statement about latest benefit numbers putting the usual positive slants on it. Seasonal factors and slowing rate of growth. But cutting to the chase...

There are 338,212 New Zealanders currently receiving a benefit.

That is 1.6 percent higher than in June 2010 when there were 332,924.

Of the 5,288 increase only 1,371 was accounted for by the unemployment benefit. So three quarters of the increase is on other benefits. That is bad news because, as I have pointed out many times before, people stay on the DPB and invalid's benefit much longer and create much higher future liabilities (and social costs).

By December I expect the DPB will exceed the previous high at December 1997 of 114,799. Unless the 'anticipatory' effect of work-testing kicks in (ie faced with a looming obligation to find work some will jump before they are pushed).