Single benefit welcomed but care for invalids urged

Social Development Minister Steve Maharey today announced a single core benefit with one set of rates and eligibility criteria. File picture / Mark Mitchell

The Government's move to a single benefit system was hailed today as a good idea, but academics and welfare groups warn that invalids and other long-term beneficiaries should not be disadvantaged.

Waikato University's department of societies and cultures senior lecturer Michael Goldsmith said a universal benefit was good in theory.

"But I am a little worried about whether or not in practice this will mean that some people will have to report more frequently, or undergo a more vigorous audit process to maintain an invalid benefit," he told NZPA today.

In the past, people with permanent disabilities had been required to prove every six months they still had the same disability.

"That system seems to have become much more reasonable over the past two years and it would be a shame to see anything regressive occur in that respect."

Social Development Minister Steve Maharey today announced a single core benefit with one set of rates and eligibility criteria will replace the current raft of allowances, rules and entitlements.

The Government expects to save between $40 million and $70 million in administration costs and has promised no one will be worse off as a result of the changes which will be introduced in May.

Dr Goldsmith welcomed moves to ensure beneficiaries were constantly managed to be work-ready.

"That's a good idea at times of high economic growth and low unemployment, when the conditions are favourable and the people concerned are obviously likely to benefit.

"But there are still people who need to be treated very generously."

One of the strongest arguments in favour of a single benefit was that it reduced administrative complexity in areas such as means testing, he said.

"So there could well be a reduction in administration costs."

The Government also expected to save money by moving people off benefits and into work, Dr Goldsmith said.

"There is an implication that there are a lot of people on benefits who shouldn't be on benefits, and that's always true for a certain proportion.

"But I think the numbers are always exaggerated in the discussions surrounding this."

New Zealand Federation of Voluntary Welfare Organisations executive director Tina Reid said the welfare system needed to be simplified.

"But it will be important to ensure that, particularly invalids and people on long-term benefits, are not disadvantaged," she told NZPA.

Barnardos family advocacy centre manager Mike Coleman said today he hadn't seen the details of the changes to the welfare system.

"But if it simplifies the administration of the benefits system and enables a better relationship between the case manager and the beneficiary, then in principle it is good."

- NZPA