Katherine Rich MP
National Party Social Services Spokeswoman

25 August 2004

Taxpayers carry cost for slack DPB rules

National Party Social Services spokeswoman Katherine Rich is accusing Work and Income of turning a blind eye to liable fathers and leaving taxpayers to pick up the tab.

"The figures I'm releasing today show that nearly 20% of DPB recipients fail to name the father of their child and are subject to a Section 70A deduction.

"However, official papers also reveal that in one in five of those cases, Work and Income does have the name of both parents on file.

"It makes a mockery of the system that both parents can be named on a birth certificate, yet Work and Income turns a blind eye.

"For one in five of those who are subject to a Section 70A deduction, Work and Income has the father's name on file, but the Government does not pursue payment.

"The number of solo parents in that category has grown from 2,150 in May 2001 to 3,800 in July this year. Up a staggering 76%.

"Taxpayers are being taken for a ride because of a soft welfare system that doesn't have simple checks and balances in place.

"Surely if Work and Income already knows who the father is, it's a simple exercise to identify his responsibilities.

"This is an issue the Government has been deliberately ignoring. The public were promised action last year, and we're still waiting.

"According to official papers, the number of mothers who won't officially name the fathers of their children has increased from 13% in 2000, to 14.7% in 2002 and it was close to 18% in July 2004.

"The issue is particularly serious among young women in the main North Island centres.

"According to the figures, one in three Auckland women on the DPB between the ages of 16 and 24 have failed to name a liable father for child support payments.

"In the Waikato the figure is 30%, in Wellington it's 25%, while on the East Coast and in Northland it's more than one in four," says Mrs Rich.

Ends

Attached: * PQs: 10858, 10859, 10860, 10862, 10863, 10864, 10865, 10866, 10868 (5 pages).

* PQs: 10858/10859 Region by Region Breakdown x 2 Tables (1 page).

PQs: 10858/10859/10860/10862/10863/10864/10865/10866/10868

From: qwawf
Sent: Thursday, August 19, 2004 2:44:55 PM
To: Katherine Rich
Subject: 10858 (2004) Published - Social Development & Employment (Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries and how
many are subject to the section 70a penalty, broken down by region?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: MSD officials have provided the attached table, which shows the total number of sole parent beneficiaries in receipt of Domestic Purposes Benefit and those subject to a section 70A deduction as at 30 July 2004.

This information has been broken down by region.
Attachment: PQ10858.xls

Date Received: 19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:56 PM
To: Katherine Rich
Subject: 10859 (2004) Published - Social Development & Employment (Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries between 15 and 24 years and how many are subject to the section 70a penalty, broken down by region?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: MSD officials have provided the attached table, which shows the total number of sole parent beneficiaries in receipt of Domestic Purposes Benefit and those subject to a section 70A deduction aged 16 to 24 years as at 30 July 2004.

This information has been broken down by region.
Note : There are persons younger than 16 in receipt of Domestic Purposes Benefit.

Attachment: PQ10859.xls
Date Received: 19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:56 PM
To: Katherine Rich
Subject: 10860 (2004) Published - Social Development & Employment (Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries between 15 and 24 years in the Auckland South region and how many are subject to the section 70a penalty?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: I refer the Member to my response to written parliamentary
question 10859 (2004).

Attachment: None
Date Received:19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:56 PM
To:Katherine Rich
Subject: 10862 (2004) Published - Social Development & Employment(Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries between 15 and 24 years in the Southern region and how many are subject to the
section 70a penalty?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: I refer the Member to my response to written parliamentary
question 10859 (2004).

Attachment: None
Date Received:19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:57 PM
To: Katherine Rich
Subject: 10863 (2004) Published - Social Development & Employment(Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries subject to the section 70a penalty because they have elected not to apply for Child Support even though the liable parent is named?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: I refer the Member to my response to written parliamentary
question 10864(2004).

Attachment: None
Date Received:19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:58 PM
To: Katherine Rich
Subject: 10864 (2004) Published - Social Development & Employment(Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: Is Work and Income aware of any sole parent beneficiaries
subject to the section 70a penalty because they have elected not to apply for Child Support even though the liable parent is named, if so, what estimates have been made about the number of beneficiaries who are in this situation?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: MSD officials completed research in relation to beneficiaries subject to a section 70A deduction in 2003.

This research suggests that approximately 21% of sole parent beneficiaries with a section 70A deduction had both parents’ details recorded by Work and Income.

Attachment: None
Date Received:19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:58 PM
To: Katherine Rich
Subject: 10865 (2004) Published - Social Development & Employment(Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries between 15 and 24 years in the Auckland Central region and how many are subject to the section 70a penalty?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: I refer the Member to my response to written parliamentary
question 10859 (2004).

Attachment: None
Date Received:19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:59 PM
To: Katherine Rich
Subject: 10866 (2004) Published - Social Development & Employment(Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries between 15 and 24 years in the Auckland North region and how many are subject to the section 70a penalty?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: I refer the Member to my response to written parliamentary
question 10859 (2004).

Attachment: None
Date Received:19/08/2004

From: qwawf
Sent: Thursday, August 19, 2004 2:44:59 PM
To: Katherine Rich
Subject: 10868 (2004) Published - Social Development & Employment(Associate Minister - Service Delivery) - Normal Reply
Auto forwarded by a Rule

Question: What is the total number of sole parent beneficiaries between 15 and 24 years in the East Coast region and how many are subject to the section 70a penalty?

Portfolio: Social Development & Employment (Associate Minister – Service Delivery)
Minister: Hon Rick Barker
Date Lodged:10/08/2004

Answer Text: I refer the Member to my response to written parliamentary
question 10859 (2004).

Attachment: None
Date Received:19/08/2004

PQ: 10858 (2004)
Total number of Sole Parent beneficiaries in recepit of Domestic Purposes Benefit by region as at 30 July 2004

Region Number of Sole Parents Number of Sole Parents with section 70a
Auckland Metro 32360 7423
Bay of Plenty 11196 1936
Canterbury 8996 1177
Central 6454 898
East Coast 7792 1400
Nelson 3464 430
Northland 5517 1013
Southern 5624 497
Taranaki 5870 849
Waikato 8374 1627
Wellington 7863 1158
Other 116 30
Total 103626 18438

1, The table shows sole parents on all Domestic Purposes Benefits.
2, Auckland North, Auckland South and Auckland Central are old Work and Income
regions. They are now combined into Auckland Metro for reporting purposes.
3, Region "other" includes clients who are not in any defined region. For example,
clients may be enrolled at a call centre, which covers a wide geographical area.
4. There are no Domestic Purposes Benefit recipients under 16 years of age.

PQ: 10859
Total number of Domestic Purposes Benefit-beneficiaries who are sole parents aged 16-24 as at 30 July 2004
Region Number of Sole Parents Number of Sole Parents with section 70a
Auckland Metro 5717 1918
Bay of Plenty 2202 592
Canterbury 1496 337
Central 1213 259
East Coast 1561 395
Nelson 511 121
Northland 1033 292
Southern 1065 167
Taranaki 1134 269
Waikato 1657 504
Wellington 1500 380
Other 32 12
Total 19121 5246

1, The table shows Domestic Purposes Benefit recipients who are sole parents.
2, Auckland North, Auckland South and Auckland Central are old Work and Income regions. They are now combined into Auckland Metro for reporting purposes.
3, Region "other" includes clients who are not in any defined region. For example, clients may be enrolled at a call centre, which covers a wide geographical area
4. There are no persons younger than 16 in receipt of Domestic Purposes Benefit.

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