Emergency food grant costs rise 75pc

The Salvation Army has reported a 40 per cent increase in demand for food parcels since this time last year. Photo / Glenn Jeffrey

The cost of emergency food grants has jumped 75 per cent since the maximum limits were doubled a year ago.

The Ministry of Social Development said the number of food grants increased from 23,730 a month in the three months to June last year to 39,122 a month this year.

It could not provide figures for all special needs grants by press time last night, but Social Development Minister Paula Bennett has told Labour's Annette King that 57,912 special needs grants were approved last month.

The maximum food grants were increased last August from $450 to $900 a year for families with one or two children, and from $550 to $1100 for families with three or more children.

The figures show that the average for each grant has stayed around $100 for the past two years, even though food prices rose 16.6 per cent.

Special needs grants are available to workers as well as beneficiaries who can show that they have an essential need which they cannot meet. They are subject to income and asset tests.

They are paid direct to supermarkets, electricity companies or other suppliers and can only be used for essential items.

The increase comes two weeks after the Salvation Army reported a 40 per cent increase in food parcels since this time last year, to an average of 4048 a month in the three months to June.

The army's social services director, Major Campbell Roberts, said the increase showed "a rapid deterioration in the living situations of low-income New Zealanders" due to the recession.

"For the families the Salvation Army deals with, the recession affects their ability to meet their basic physical needs: food to feed the children, money to pay the rent, and clothing and bedding for warmth in winter."

* Grant numbers

Monthly averages

July-Sept 2007 23,097

Oct-Dec 2007 23,042

Jan-Mar 2008 25,144

Apr-June 2008 23,730

July-Sept 2008 32,709

Oct-Dec 2008 34,062

Jan-Mar 2009 38,233

Apr-June 2009 39,122