Stark contrast between benefit increase & MPs’ pay rise

Media release Friday 27 February 2015

Earlier this week Social Development Minister Anne Tolley announced that benefits will increase by 0.51% on 1 April.

Yesterday MPs were granted a 5.5% pay increase, backdated.

“The contrast couldn’t be starker,” says Auckland Action Against Poverty spokesperson and former Green MP Sue Bradford.

“Anyone who doubts that we’re moving daily towards a more unequal society only has to look at the gap.

“The value of benefits constantly declines as any increase is tied to inflation, currently at record low levels of around 0.8%.

“The nett weekly base rate for a single person on Jobseeker Support aged 25 or older will go up by an extra $1.07 per week - $55.64 per year.

“The nett weekly base rate for a sole parent will go up by a princely $1.53 per week - $79.56 per year.

“John Key will receive an extra $457.69 per week - $23,800 per year

“The ability of working age beneficiaries to meet even the most basic living costs reduces daily because of the way benefit increases are set.

“The notorious 1991 benefit cuts were never restored under either National or Labour governments and because of the way annual increases are calculated, poverty constantly deepens for unemployed people, sole parents, and the injured, sick and disabled who are dependent on income support.

“Superannuitants and Veterans pensions will go up by 2.07% on 1 April, in line with 66% of the average wage. As ever, working age beneficiaries and their children are treated with far less respect and fairness.

“As a former MP I understand the embarrassing predicament MPs now find themselves in, as their salary rates are set by the Remnueration Authority and cannot be rejected.

“One of the best ways out of this embarrassment would be for government to lift the base rate of working age benefits to cover the gap left by the benefit cuts, and to calculate annual increases in the same way as superannuation.

“Ultimately a fair and adequate Universal Basic Income alongside a government commitment to decent job creation and free access to training and education is the real way forward out of the current welfare mess.”

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