Benefit queues cut

The number of Wairarapa residents claiming benefits has plateaued despite a government crackdown on welfare payouts.

Figures from the Social Development Ministry show 3245 residents claimed benefits in March, down slightly from 3369 one year ago.

However, the number of unemployment benefit recipients increased slightly during the 12-month period, from 564 to 575. Just 85 local residents were on the dole five years ago.

Masterton Mayor Garry Daniell said the new benefit statistics were not surprising. "It's really not a surprise that unemployment is pretty much the same as last year."

Different sectors had done well throughout the year economically, he said. "Last year, from a farming point of view, was probably the best of a lifetime."

This had a positive flow-on effect for other Wairarapa businesses, he said.

However, the recent summer months had been much tougher for farmers with the drought.

"If the farmers haven't got money to spend that sort of reverberates around our economy as well."

This was likely to impact on job opportunities.

Nationally, the number of people receiving one of the main benefits fell 4 per cent in the year to March.

Of the 310,000 people on benefits in March, nearly one in three (31 per cent) were aged between 25 and 39 years. Those aged 40 to 54 years made up a similar proportion of beneficiaries (32 per cent).

Quarterly figures released by Social Development Minister Paula Bennett last month showed New Zealand benefit numbers were trending downwards. About 29,000 fewer Kiwis claimed benefits in the three months to March compared to the previous quarter, she said.

The drop signalled the lowest number of beneficiaries for the March quarter since 2009.

A breakdown showed 92,550 sole parents were on the DPB, 58,208 were claiming sickness benefits, and 48,756 people were on unemployment benefits.

A crackdown on benefit fraud has seen more than $5 million in welfare was immediately cut from 525 people found in March to be unfairly claiming the benefit.

Associate Development Minister Chester Borrows said ministry staff were contacting people who had claimed benefits but failed to fully disclose their income level. The 525 claimants received benefits totalling $5.6 million, he said.

"That's money they were not entitled to and I'm glad we've been able to put a stop to it."

Cases of deliberate fraud would result in prosecution, he said. "Beneficiaries know that when they start work, they must advise Work and Income of their changed circumstances.

"The expanded information sharing between Inland Revenue and MSD means that those people who are dishonest and don't declare that they are earning income will be caught."