DEFU Shows Welfare Spiralling Out of Control
The December Economic and Fiscal Update shows Labour Government welfare spending is roaring ahead despite unemployment
actually being down, ACT Social Welfare Spokesman Dr Muriel Newman said today.
“Social Services and Employment Minister Steve Maharey loosened the criteria for accessing benefits and created the
conditions for soaring costs to the taxpayer. Total annual welfare spending – excluding pensions – is up $400 million
from three years ago, despite unemployment dropping by one percent.
“Today’s fiscal update shows a dramatic increase in forecast beneficiary numbers – there will be 29,000 new
beneficiaries over the next four years.
“And special benefit spending is now forecast to be double this year what it was in 1999/2000. It will increase by 370
percent to $165 million by 2006.
“The depressing figures in today’s fiscal update provide yet more evidence that the Government’s heavy handed approach
adds to the welfare juggernaut, ensnaring more and more people into ongoing dependence on the state and increasing the
already considerable burden on New Zealand taxpayers,” Dr Newman said.