WELFARE: No relief for nation's poorest

Social agencies will be disappointed that the Budget fails to deliver financial relief for New Zealand's poorest. But welfare spending will rise regardless, fuelled by unemployment and low-paying jobs.

Children who fall through the cracks are the targets of new spending, the two major initiatives being a $41 million expansion of Family Start and social workers for 175 schools.

There is $1.5 million to train caregivers of difficult children, $1.5 million to develop programmes for severely disabled school-leavers and $1.3 million for rehabilitation programmes for highly antisocial teenagers.

The chronically overworked Commissioner for Children's office gets an extra $100,000,which will not go far.

The Budget delivers what is perhaps the dying gasp of the Code of Responsibility, which toyed with compulsory budgeting advice - such services will get $6.6 million more over three years.

Beneficiary numbers are expected to rise across the board, but there was no major announcement for welfare or employment.

The fledgling Work and Income department is in a phase of consolidation, and last year's policies - such as work-testing invalids and DPB work requirements - have yet to kick in.

WINZ minister Peter McCardle's baby, work-for-the-dole, will not be expanded.

Departmental targets include reducing by up to 3000 the 10,000 people registered unemployed for more than four years and investigating more benefit crime. -Deborah Diaz