Benefit hikes not in poverty battle plan
Substantial benefit increases appear off the Government’s welfare agenda as it chooses to grapple with housing and mental health.
Social Development Minister Carmel Sepuloni strongly signalled her plans for welfare reform at the Child Poverty Action Group conference yesterday, asking welfare advocates to ‘‘trust in the coalition Government’’.
Advocates criticised the Government’s ‘‘puzzling and disturbing’’ failure to act on its promises to the poor, and insisted the $7.5 billion Budget surplus be spent on boosting the income of beneficiaries.
Children’s Commissioner Andrew Becroft said that the Government must undo the damage of the benefit slashes of the 1991 ‘‘Mother of all Budgets’’.
‘‘There will need to be some big increases to benefits that apply for children … We have a surplus, a significant surplus waiting for a rainy day. This is a rainy day,’’ Becroft said.
The Government has announced that benefit rates will be linked with rises to the average income. But Becroft said this was simply not enough.
But Sepuloni yesterday steered clear of such pleas, saying unaffordable housing and mental health were two huge issues facing beneficiaries.
Sepuloni pointed to much of the Government’s work in housing, including tenancy reform announced on Sunday, and the $455 million set aside for mental health in the 2019 Budget.
She said unaffordable housing was driving the high numbers seeking hardship grants from Work and Income, and evidence showed many people falling out of work had been accessing mental health care.
‘‘Excuse me if I haven’t come with all the answers to the short term action you would like to hear about.
‘‘Much of what you wanted to hear today . . . that is the stuff that is budget sensitive,’’ she said, implying there may be movement in the 2020 Budget.
The two- to five-year plan Sepuloni outlined included increasing income support, tackling beneficiary debt, expanding employment services, and simplifying the benefit system.
But increases to main benefit levels were not on the list.
Sepuloni said overhauling the welfare system, as promised by the coalition Government, was a ‘‘large, expensive, complicated task’’. The Government could not shift just one element of the system while neglecting others, and ‘‘expect to see the transformative change’’.
Sepuloni said there was broad support within the Government, including from NZ First, for changes to the welfare system.
Green Party co-leader Marama Davidson issued a press release as Sepuloni was speaking at the conference, saying the Government must increase main benefit levels.
University of Auckland Professor Innes Asher, a member of the Government-appointed Welfare Expert Advisory Group, said it was ‘‘puzzling and disturbing’’ that no meaningful changes had come since the group released its report.
‘‘It seems to be something that hasn’t been regarded as important by the Government.’’
The advisory group’s report, issued in April, recommended increasing main benefits between 12 per cent and 47 per cent.