Beneficiaries lot improves

Press, 15 June 1978, Page 11

Beneficiaries lot improves

Wellington. The Cabinet has approved final details of a reviseci income test aimed a: mailing an improvement in beneficiaries’ weekly income from October. The change, announced in the Budget, would affect invalids, sickness, unemployment and domes-

tic purposes beneficiaries, widows, national superannuitants with a nonqualified spouse, war veterans' allowances, war service pensions and war economic pensions, said the Minister of Social Welfare (Mr Walker). As announced in the Budget, the allowable income for beneficiaries would be increased from

the present $l7 a week, or $2l a week for widows and domestic purpose beneficiaries with dependent children, to $25 a week. Income over $25 and up to $4O will reduce the benefit by 40 cents for each complete dollar. Income over $4O a week will further reduce the benefit by 80 cents in each complete dollar. The present reduction in benefit is $1 in every $2 for income over the allowable limit and up to $25 a week, and $3 in every $4 for income over $25 a week. From October a widow with one child, earning $3O a week would find her income increased almost $4 a week under the revised income test, said Mr Walker. Also as announced in the Budget, additional benefits for the third and subsequent children of

widows and solo parents, and the second and subsequent children of married couples, would be increased in July to $2 a week, he said. The present rate is $1.25 a week. As in incentive for solo parents to enter the w’ork farce it has been decided to allow child care costs of up to $2O a week to be offset against a solo parent’s earnings. “This will be implemented in January 1979, and will mean that a solo parent earning, for example, $5O a week and paying $2O a week in child care costs, will have only $3O charged against her benefit instead of the full $5O as at present,” Mr Walker said. The allowance would be made Only if the child was at a registered child care centre or in alternative child care approved by a Social Welfare Department social worker.