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A beneficiary was told to head to a loan shark, pawn their cell phone and their children's Play Station by a Work and Income staff member.
Labour's social development spokeswoman Annette King tabled a letter in Parliament yesterday with the details.
Ms King asked the Social Development Minister Paula Bennett if she was aware of: "A letter sent out by her department advising a client to go to a loan shark, to pawn a cell phone and kid's toys to increase their income before they get assistance."
Ms King also asked if the Government would ensure that there would not be cuts to budgeting services.
Ms Bennett said she hadn't seen the letter but said she would follow it up.
"This Government is looking at all areas of money and where it's being spent and we will continue to do that. I am looking at a line by line review, value for money for those, and we will be supporting front line services," Ms Bennett said.
In a statement this morning, Ms Bennett said the letter was "totally unacceptable".
She said the chief executive of the Ministry of Social Development has been asked to "get to the bottom of this matter."
"There are tough times ahead, and the last thing we need is people who are relying on help from the state getting into a greater debt trap," Ms Bennett said.
It was later revealed the letter included suggestions the beneficiary had come up with herself.
A spokeswoman for Ms Bennett said other letters written in a similar vein had been identified and authorities were ensuring that such advice was changed.
The focus was on clarifying such procedures when dealing with beneficiaries as opposed to focusing on the junior staff member involved, she said.
- NZHERALD STAFF
