Benefits cost $773M last year

Press, 16 September 1976, Page 14

Benefits cost $773M last year

PA Wellington The Department of Social Welfare paid out a total of $773,237,783 on social security benefits in the year ended March 31, 1976, according to the department’s annual report tabled in Parliament this week.

The figure, which includes additional benefits, compares with $617,694,112 for the previous year. Of the expenditure on cash benefits, $330,560,867 (43 per cent) was paid without an income test, and $442,676,916 (57 per cent) subject to an income test.

The expenditure did not include the sums paid out on capitalised family benefits, benefits on death, telephone rental concessions, special annuities, television licence fee concessions, and advances made to beneficiaries and pensioners for the maintenance or repair of the family home, the report said. At March 31, 1976, there were 75,623 people receiving additional benefits at an annual value of $25,670,571. Additional benefit replaced the former supplementary assistance scheme from July 2, 1975, and is available to any person receiving an incometested social security benefit, war pension or allowance,

who has a limited income and assets. More than 60 per cent of the payments were to age beneficiaries. A total of 23,047 domestic purposes and related emergency benefits was also being paid at March 31, the report said. More than 90 per cent of the domestic purposes benefits were being paid to solo parents. • In the year under review payments totalling $276,407 were made to beneficiaries and pensioners as advances to assist them with repairs and maintenance to their own homes.

Under this scheme an advance of up to $lOOO may be made to a beneficiary or pensioner owning his own home for repairs and maintenance, to install essential services such as sewerage, water, and electricity, or to install essential appliances such as a stove, heating facilities, laundry, washing facilities, and toilet facilities. Approval was given 551 applications while 171 were declined. The report said $2,598,396 was paid out under a new benefit on death to the dependants of deceased people during the year. Under the new benefit, which came into effect on April 1, 1975, provision is made for a lump-sum payment of up to $lOOO to the

dependent widow or widower of a person who dies before the age of 65 years. Provision is also made for a lump-sum payment of up to $5OO for each dependent child of the deceased person, but the total amount payable to such children must not exceed $l5OO,

In prosecutions during the ! year convictions were en- . tered against 41 beneficiaries , for offences under the : Social Security Act,. 1964, • said the report. The offend- : ing beneficiaries were re- , i ceiving an age, widows, invalid’s, family, domestic pur-

poses, sickness, or unemployment benefits. Restitution totalling $13,616.96 was ordered. The prosecutions involved overpayments totalling $51,928. Referring to the Social Security Appeal Authority, the report said that during the year the authority considered 116 cases. The appellant was successful in 31 cases, unsuccessful in 84 cases, and one appeal was referred back to the Social Security Commission. The appeal authority, which came into force in 1974, is a further avenue of appeal for unsuccessful appellants to the Social Security Commission.