Minister rejects Family Care criticism

Press, 14 November 1984, Page 2

Minister rejects Family Care criticism

PA Wellington Criticism of the ineligibility of unemployment and Social Welfare beneficiaries for payments of $lO a week for each of their children under the Budget’s Family Care benefits was unfounded, said the Minister of Social Welfare, Mrs Hercus, yesterday. She said claims that beneficiaries should receive the same benefits the Budget gave to lower-wage families made no sense when the movements in income for the two groups were compared. “The blunt fact is that during the previous Government’s wage freeze, lowerwage families received no increase in their incomes for almost 2% years, apart from a general wage order of $8 a week gross, or an average of 2.9 per cent,” said Mrs Hercus.

“In contrast, social security benefits during that same period increased more than 14 per cent because of regular six-monthly adjustments right through the freeze,” she said. “With the benefit increases announced in the Budget, beneficiary family incomes are now more than 19 per cent higher than they •were in July, 1982,” she said. Mrs Hercus said that the Budget had delivered a three-part package of assistance to all beneficiaries:

An increase in basic benefit rates — in addition to the two six-monthly increases this year — of $6 a week for married couples and $3.60 for single people. An increase in the child supplement from $6 to $8 a week for each child.

An expanded special benefit, to help beneficiaries with high additional costs, such as health care.

“This package reflects a clear recognition by the Government that beneficiaries were entitled to extra assistance in the Budget, in addition to the regular six-monthly reviews of benefit levels,” said Mrs Hercus.

Information about Family Care was being sent to all beneficiaries with families because it was recognised that many beneficiaries, including the unemployed, were on benefits for a short while.