Labour endorses 'income management' roll-out

The National government implemented income management for youth and young parents. This involves loading most of their benefit onto a payment card which can be used for groceries and other necessities. Rent and power are paid direct and the beneficiary is left with a small cash allowance.

Indications are that this regime will be rolled out to other beneficiaries who are not managing their money ie constantly seeking more assistance.

This is a policy that enjoys popular support because people want to see children's basic needs met. It took a National government to implement it.

But here's a surprise.

Labour supports it.

Their Social Development policy paper contains this statement:

"...allow income management to be used as a tool by social agencies where there are known child protection issues and it is considered in the best interests of the child, especially where there are gambling, drug and alcohol issues involved."

But then they go backwards again:

"Labour will:

lift the abatement-free thresholds for all main benefits to $150 per week.

The initial cost of this change is estimated at $40 million a year. However, we expect this to be offset by savings made by people on benefits taking up more part-time work."

Abatement-free thresholds are notoriously difficult to set. Raising them does encourage people to work more hours. But it also makes it much more difficult for them to actually get off the benefit because the combination of benefit and work is much better than work alone.

In fairness to Labour (because I blogged recently that I couldn't find their Super policy) here it is confirmed:

A sustainable superannuation system is essential and, in fairness to all generations, requires action now. The number of Kiwis above the retirement age has increased by 24 per cent since the last census, showing action is needed to keep universal superannuation sustainable. Labour will:

gradually lift the age of New Zealand Superannuation eligibility from 65 to 67, starting on 1 April 2020 and taking 12 years to phase in.

I support the age going up but this wouldn't win my vote. Look at the timeline. Once Key, who foolishly tied himself to retaining the age at 65, is no longer PM National will move on this. They'll have to.