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$1 an hour jobs for beneficiaries

Published: 12:01PM Sunday March 28, 2010 Source: ONE News

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.

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  • RiskyBusiness 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....

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