Study money kept poverty away
’Ana Pahulu, a 28-year-old single mum, was looking down the barrel of a life of poverty for her young daughter when she made a fateful decision to go back to university to study.
The Auckland woman had earlier spent two years on a benefit for single parents but could barely pay the bills.
“Raising a child on $300 a week, it’s constant poverty,” she said.
In going back to university, Pahulu completed a degree in English literature and linguistics and a Masters in English language teaching.
Fast forward 16 years, she’s now an English teacher and 19-year-old daughter Helen is in her second year of university music studies majoring in jazz.
The better pay and empowerment gained from her qualifications had likely changed the outlook for generations of her family, Pahulu said.
“That empowerment translates to a better life, better wellbeing, better opportunities for [my daughter] and her children and their children,” she said.
Yet Pahulu said she could never have finished her university studies without the weekly Training Incentive Allowance payment on top of her other benefits. Without it, all the added costs of studying, such as public transport and textbooks, wouldn’t have been possible, she said. “I don’t think I would have been able to finish, that is just the reality of it,” she said. Pahulu said she was angry when the National government scrapped the allowance in 2009 for those wanting to study higher-level education courses. That closed the door on the futures of many other single mums like her, she said. So she was delighted the Labour Party had promised to bring it back if elected.
The expansion of the Training Incentive Allowance meant sole parents wanting to study would be able to get a weekly payment up to a maximum of $112.89 and a total of $4515.60 a year.
This could be used alongside a student loan and child care assistance.
It would also be made available for disabled people and carers who are receiving a main benefit.
Rachel Peterson said she might also take advantage of the allowance to go to university in a bid to get better pay for her work in the disability sector.
As a disabled solo mum of two, university had earlier proven too much of a financial battle, she said.
“But it would be neat to have some more qualifications because otherwise people eclipse you with letters after their name, although you might have 20 years’ grassroots experience.”
Of more immediate benefit, however, was a Labour promise to raise the so-called abatement threshold — meaning people on a benefit could work more part-time hours before their income support was reduced — Peterson said.
It would allow everyone on a benefit to earn $160 per week — around eight hours of minimum wage
— before losing income support. That could add up to about an extra $3000 for some each year.
Labour would also increase the second threshold for those on Sole Parent Support and Supported Living Payment to $250 per week.
Wanting to work more was great, but it didn’t make sense if people ended up losing more than they made when petrol and childcare costs were factored in, Peterson said.
“There are a lot of people with disabilities that want to be working again, but they cannot afford to be losing money so I think this is going to be a big shift.”