DPB Sleight-Of-Hand

Friday, October 27, 2006

Ministry of Social Development, David Benson-Pope, yesterday told National Radio host Mary Wilson, that 10,000 people moved off the DPB last month.

Welfare commentator Lindsay Mitchell says, "This has been expected for some time due to the In-Work payment becoming available to single parents who work a minimum of 20 hours per week from April 1."

"Unfortunately the Ministry of Social Development does not record whether the person leaving the DPB went on to receive an In-Work payment, which is administered by Inland Revenue. Neither does Inland Revenue record whether a person applying for an In-Work payment has just left benefit."

"Which begs the question, how does the government track the effect of its policies?"

"In essence people leaving DPB have moved from one form of welfare to another. Instead of being on a partial DPB they are on an In-Work payment. Both are funded by the taxpayer."

"The advantages are the 'former' beneficiary is better off financially and David Benson-Pope can claim a substantial drop in DPB numbers."

"This is no more than political sleight-of-hand."

www.lindsaymitchell.blogspot.com

ENDS

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