WINZ advises to visit loan shark

Published: 6:22PM Tuesday February 17, 2009 Source: ONE News

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Budget advisors are outraged that financially troubled families are being told by a government agency to get loans and sell up their families possessions.

The extraordinary advice comes from a leaked letter from a Work and Income case worker to his south Auckland client.

It tells the family to go to loan sharks or sell off their children's toys as a way of coping with their debt.

The letter from a Mangere Work and Income case manager, complete with gramatical errors, tells his client to...
"Consider taking out a loan to cover arrears."
"Pawn my cellphone and children's play station."
"Rung my debtors to reduce monthly payments."
"Seeking a budgeting advice."

Darryl Evans from the Budgeting and Family Support Services Trust says the advice is offensive.

He is not alone. Concerns about the letter are reaching parliament.

"Is this appropriate advice to give unemployed New Zealanders?" asks Annette King, Labour's Social Development spokeswoman.

Paula Bennett, Minister of Social Development is says that she has not seen the letter.

"I look forward to seeing it so if that is the sort of information going out we can hold someone to account," she says.

ONE News tried calling the case manager at work to ask about his advice.

"Unfortunately it's your name on the letter," says reporter Francesca Mold. "Hello?"

He hung up.

There are also concerns about possible budget cuts for budget advisors.

"Will she [Paula Bennett] give a guarantee that funding to budgeting advisory services will not be reduced?" asks King.

Paula Bennett responded saying she is looking at a line by line review.

"Value for money for those and we will be supporting frontline services," she says.

Frontline services that the minister now wants to ensure is giving the right advice.

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