Benefit levels mean fraud is ‘no surprise’

The net weekly amount allocated to an individual over the age of 18 receiving the Supported Living Payment is just $269.15.

Can those receiving a social welfare benefit afford to live in New Zealand?

Many are turning to a life of minor crime by committing benefit fraud, but it’s not necessarily their fault, Auckland Action Against Poverty co-ordinator Ricardo Menendez March says.

‘‘When people are faced with a decision on whether to eat or pay the rent, it is no surprise that some people will end up having to find creative ways of getting the most out of the system because the system itself is not enabling people to live a dignified life.

‘‘The Government is actively creating criminals by forcing people to make these decisions.’’

An anonymous individual told Stuff they had to break the law in order to afford living expenses after falling ill and relying on Jobseeker Support, which they described as ‘‘a bloody joke’’.

They went from earning about $1100 a week to a ‘‘measly’’ $240.

‘‘It was the biggest financial blow I had been dealt in my adult life – $240 a week is not liveable.’’

Menendez March said this type of fraudulent activity did not come as a shock. ‘‘That speaks more about our system needing reform . . . When there’s so many barriers to access adequate income, it is no surprise people feel like they cannot be honest [with] Work and Income because you lose if you’re honest ... and then you lose if you’re dishonest.’’

So what’s the solution? As per the Ministry of Social Development’s Welfare Expert Advisory Group’s recommendations, benefit levels need to be urgently raised by up to 47 per cent, and access to the benefit should be improved.

Menendez March believes the current system is failing New Zealand’s disabled community and those who need the most support.

Minister for Social Development Carmel Sepuloni said a paper would be presented to Cabinet at the end of the year to outline a ‘‘plan for the next steps in the overhaul of the welfare system’’.

‘‘All main benefits are being looked at including the Supported Living Payment.’’

Stuff asked the National Party’s social development spokeswoman, Louise Upston, if the current benefit levels were adequate.

Although she didn’t answer the questions directly, she stated National’s belief that the benefit should be a ‘‘short-term measure while people get back up on their own two feet’’.

However, she agreed that ‘‘New Zealanders are feeling the pain from increased cost of living’’.

Sepuloni’s office explained that it would take time to address financial issues in the welfare system ‘‘after years of underinvestment’’. ‘‘We need to take a careful and considered approach.’’

‘‘The Government is actively creating criminals by forcing people to make these decisions.’’ Ricardo Menendez March AAAP co-ordinator