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Some sickness beneficiaries could effectively be working for a dollar an hour under Paula Bennett's new welfare reforms.
That calculation has led Treasury to oppose the plan, but when the minister spoke to TVNZ political editor Guyon Espiner on Q+A she said she's pushing ahead.
Bennett has a message for some on the sickness benefit: working
can make you well.
"People with low level depression and low level mental illness are
often better off in work and it's actually a road to recovery for
them it actually helps them get better," she says.
A work test is being introduced for sickness beneficiaries: if they
can work part time they will have to look for part time work or
benefits could be cut.
But Cabinet papers reveal Treasury opposed the work test. They say
sickness beneficiaries on the minimum wage could effectively be
working for a dollar an hour. Fifteen hours of work a week would
leave them $70 better off, but due to the way benefits are
calculated an extra five hours work only delivers about $5
more.
Bennett was asked is it fair to have a person who is unwell
working for a dollar an hour extra gain?
"Well I actually think it is about more than the economic benefits,
and that's one example. It will depend on what they're on an hour,
it will depend on the add-on benefits they get. You've given an
extreme example of $1 an hour," she replied."
Christine Rankin says some sickness beneficiaries aren't sick at
all but pressure doctors to sign them up.
"They felt very intimidated by a lot of people. They felt forced to sign sickness benefit certificates," she says.
And there will be plenty more certificates. An extra medical
assessment will now be needed after eight weeks on the sickness
benefit.
Cabinet papers show that means 49,000 extra doctor visits. That
could put pressure on the health system and increase waiting
times.
"For some of those areas where there aren't enough GPs or it's too
hard to get in we'll certainly acknowledge that. They won't lose
their benefit because they haven't been. They are just going to
have to have made an appointment and be going at some time," says
Bennett.
The Domestic Purposes Benefit is changing too. Forty three thousand solo parents will have to look for part-time work or their benefits could be cut in half. But the sanction may last just one day.
"They could turn up the day after that happens and say 'actually probably should have turned up, sorry I didn't, what can I do to get back on?' And we'll say attend this interview this afternoon and your benefit will be back on that night," says Bennett.
But getting people off benefits is the aim and that is yet to be tested.
What do you think of the welfare shake-up? Share your
thoughts on the messageboard below.
Add a Comment:
Post new commentRiskyBusiness said on 2011-05-31 @ 20:03 NZDT: Report abusive post
Government cuts already has the welfare of beneficiaries in dire straits.As somebody dealing with deep depression and long term PTSD in regard to sensitive issues.Over the last 4 years i have been twice denied help with dental work,been forced to live with mouth ulcers and extreme pain,while waiting on my teeth to slowly fall out.And yet this is still only the tip of the ice burg of the sort of nasty inhuman treatment i have been forced to experience.Now they want to kick us even more?.
sagekiwi said on 2010-04-01 @ 17:40 NZDT: Report abusive post
Well done and thankyou Tim.
KiwiGirl47 said on 2010-04-01 @ 08:52 NZDT: Report abusive post
It is pleasing to see a well-written opinion piece based on fact rather than emotion. Well done.
panthernz said on 2010-04-01 @ 08:45 NZDT: Report abusive post
its funnie how they think some one with a mentail illness will geta job to begain with i tryed getting work in the past but as soon as they know you have mental or othere health issuess they dont want to know you but untell you have been thire your self you dont know what its really like so stop juding otheres if you have no clue to what they go though
adrianc said on 2010-03-31 @ 19:31 NZDT: Report abusive post
although there may not be the jobs available it could be an oppurtunity for community works, council, library,town tidy up jobs, river side clean ups, its endless this could be unpaid work schemes which could credit people to still recieve benefits. Good work ethics and better time management would be the result and then paid work would be more realistic to many....