Friday, July 17, 2015

6 hours of work to get your kids out of poverty?

I pinched this from Utopia:You Are Standing In It, aptly named considering the table below:

It shows that a sole parent with two children receiving a benefit would only need to work 6 hours to get over the 50% of the median household income threshold. Is that right?

The median household income in NZ was $1,358 in June 2013. So the 50% threshold is $679.

The average Sole Parent Support payment is just over $600. 6 hours at minimum wage is $71 net.

The calculation looks robust to me.

6 hours of work does not affect the benefit:

You can get up to $5,200 a year (before tax) in additional money (for example from working) before your benefit payment is affected, and $20 more a week if you have childcare costs.
In New Zealand the higher threshold of 60 percent is used to define 'poverty'. That's $814.

According to Paula Bennett  if the parent worked 15 hours that would result in $750. At 20 hours they leap to $814 - bang on 60 percent of the median household income

So internationally New Zealand stacks up very well in its assistance level for sole parents - without the impending benefit increase.


Mark Hubbard said...

Would be interesting to know where Sweden and Norway (perhaps Finland) showed on that chart.

Anonymous said...

Very interesting data point and I'm quite surprised NZ is such an outlier here.

One could take the view that our benefit levels are being set too high based on this stat.

Jamie said...

No wonder the wimminz, I mean heroic single mommys would rather get knocked up and raise the kiddies without a Dad. $814 is about what I would earn after tax trucking doing a 60 hour week.
How's a bloke suppose to compete with that??? Become a gangster I guess??? I do hear the wimminz have a thing for the badboys

Anonymous said...

And this doesn't take into account the cashies that get earned. Plenty doing that. A bit of housework here and there, gardening, all sorts of gst/paye free jobs. see it happening most days.

Jamie said...

You forgot the oldest job in the world Anon