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NZACAB
is shocked at the findings of a recent report showing that Department
of Work & Income (DWI) owes almost one billion dollars to low-income
families and beneficiaries in backpayments, and that currently over
176,000 New Zealand households are not receiving their full
benefit entitlements.
The
report, Still Missing Out, by Wellington’s Downtown Community
Ministry, is based on the Work & Income’s own figures, obtained
under the Official Information Act, and shows that two thirds of
New Zealand households receiving the basic accommodation supplement
are missing out on their full benefit entitlements.
"We
are concerned at the report’s findings that over 176,000 of the
poorest households in the country are not receiving help to which
they are entitled. There are about 225,000 children – a quarter
of all the children in New Zealand – in these households,"
says Chief Executive Rachael Le Mesurier.
The
report cites DWI figures that show on average each of these households
is missing out on $22 a week, over $1,100 a year. In Auckland, where
the cost of living is higher than the rest of the country, the average
annual deficit for households is around $2,000 a year.
"This
report highlights the huge underpayment of entitlements that Citizens
Advice Bureaux and other community organisations have been aware
of since the 1991 benefit cuts. Bureaux from around the country
see many beneficiary and low-income households struggling to meet
the basic costs of living because they have not received their full
entitlements," says Ms Le Mesurier. "We know that this
is a problem nationally, but these figures expose the full extent
of the problem.
"CAB’s
typical experience is illustrated by an Auckland father, with a
teenager, receiving $290 a week from DWI. He pays $225 of this to
Housing NZ and another $10 loan repayment back to DWI. The remaining
$55 goes no way towards covering food and power. Based on the level
of rent alone, this father is entitled to a special benefit."
CAB
wants the Government to take immediate action to ensure all households
get their full entitlements.
"The
first step must involve the Department immediately revising its
practice so that those who it knows should qualify for a Special
Benefit are immediately granted one. Equally, the Department must
pay the $200 million owed in the current financial year and begin
repayment of the billion dollars by first cancelling any debt owed
to the department by beneficiaries. CAB will be advising beneficiaries
to go into their local DWI office and ask for a review of their
entitlements.
"This
would mean that New Zealand families will afford a healthy
diet, to heat their homes in winter and to have their kids participate
in school outings and sports."
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