Spokesperson for Social Policy
17 May 2013

Inadequate Funding for Budgeting Services

New Zealand First says the Government’s Budget continues to neglect much needed budgeting services in low socio-economic areas.

After the government’s recent welfare reforms, families now need to show they have received budgeting advice before being given more than three hardship grants a year.

Social policy spokesperson Asenati Lole-Taylor says that the Budget announcement of just $1.5 million for budgeting services is totally inadequate.

“It’s hardly enough considering it will be divided amongst 152 organisations. If distributed evenly each budgeting service would receive just $9,868.

“The utilisation of budgeting services has increased over the past three years after the Government introduced stricter welfare requirements, but is now preventing them from properly responding to that demand.

“The Government’s decision to only provide an illusionary increase for budgeting services is hypocritical when they’ve asked the public to make better use of budgeting services.”

The Manukau Salvation Army, Māngere Budgeting Services, Genesis Youth Trust, Manurewa Parenting Hub and Age Concern Counties Manukau are among the affected South Auckland organisations.

“From January to March 2013, 1224 families used the Salvation Army’s budgeting services – 278 more than the previous quarter. The government has shown total disregard for those suffering,” says Mrs Lole-Taylor.

ENDS

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