Earners before beneficiaries?

Press, 17 December 1982, Page 5

Earners before beneficiaries?

Parliamentary reporter Government policy is not to place "beneficiaries in a more advantageous position than people who depend entirely on earnings. The Deputy Prime Minister. Mr Maclntyre, has said this in Parliament in replv to a question by Mr G. W.' R. Palmer (Lab.. Christchurch Central). Mr Palmer had asked why the $25 a week allowed before abatement of the widow's and''domestic purposes benefit had not been increased since 1978. Mr Maclntyre said that in fixing the level of allowable income, the Government had to consider not only the ability of beneficiaries to earn a reasonable amount to supplement their benefits, but also the need to minimise the chance of placing them in a more advanta-

geous position than those who depended entirely upon earnings. Any increase in the allowable ’ income helped only those beneficiaries who might be able to do parttime work, he said. Because of that, priority had been given to maintaining the value of basic benefit entitlements. However, the level of allowable income would be considered in the context of the review’ of new policies in 1983-84. said Mr Maclntyre. He declined to agree or disagree with Mr Palmer's question that since the benefit had last been reviewed, inflation had increased 84.8 per cent, so that the $25 in 1978 would require $46.20 to restore purchasing power, and so beneficiaries were put in a very unfair position.