Call for ‘realistic benefits’ to help lower-income families

Press, 8 December 1976, Page 2

Call for ‘realistic benefits’ to help lower-income families

’ Many families in New :Zealand need immediate I financial relief—including a progressive increase in family benefits —the Council of Social Services has told the Government. The rise in family benefits iis only one of five suggestions to help lower-income [families, made in a report by a council working party . Many New Zealand families, especially those on a i single income, were living in [a state of relative poverty,

7 said the council’s chairman s (Mr J. Kennedy-Good). ' “Income policies adopted ■ to help this country out of - the present economic situ- ; ation give insufficient atteni tion to the welfare of child--1 ren and families,” he said. ; In recent years, resources had been channelled away from young families towards s the aged, and specific groups - such as solo parents. e “Meanwhile the value of , the family benefit has “ dwindled.” The working party’s re- - port studies the implications i of changes in average 1 weekly wages; -in rates of , taxation: price increases;

medical, housing and education costs, as well as patterns of family development. Its recommendations are:— That pending a . more detailed investigation, family benefits be increased with the age of the child. For children up to five it should be $3 weekly; from five to 12, $4; and from 12 until the child leaves school. $5. Free medical treatment should be provided for children under five. Education authorities should! investigate the number and cost of "extras” |

such as uniforms, stationery and sports equipment. Welfare authorities should provide information on the effects of this spending on lower-income families. The income-related formula on which State house rentals are assessed should take into account the number of dependents in the household. should be given to [ the Social Development Council’s review of tax and incomes structure, and the development of a “family policy.” It is suggested too that

consideration be given to making the family benefit more effective, by making it taxable, and linking it with the Consumers’ Price Index. The report estimates the change would cost about 31 per cent more than at present. Family benefit expenditure for 1975-76 was calculated at more than $165.7M; under the new system it could cost $215.7M. The Council of Social Service was set up last year to co-ordinate and advise on social welfare in New Zealand. It brings together Government departments and most social-service organisa-i tions.