National's abatement freeze a betrayal of election promises

The Government's decision to shelve its election promise to raise the abatement thresholds for beneficiaries is a betrayal of its election promises, says beneficiary advocacy group the Wellington People's Centre.

National had strongly indicated in the run up to the election that the abatement threshold would be lifted sooner rather than later.

Judith Collins, National's then welfare spokesperson, said on 16 October 2008: "Sadly Labour is also planning to make beneficiaries wait until April 2010 before altering the threshold."

People's Centre spokesperson Kay Brereton says the government's decision to shelve the policy is a betrayal of its election promises.

"Despite its rhetoric before the election National is putting its plans on the backburner and is refusing to give any indication of long beneficiaries will have to wait.

"It's disappointing that the current government doesn't recognize that raising the abatement level to reward work is more vital than ever in today's economy.

"The current allowable earnings level equates to 6.4 hours at minimum wage. Any earnings above this reduce the unemployment benefit by 70 cents for each dollar earned, and earnings are taxed at the secondary rate leaving the worker with about 9 cents for each dollar earned.

"The $20 increase would reduce the abatement of the unemployment benefit by $14 and DPB by $6.

"I would have thought that as a former beneficiary herself Paula Bennett would be advocating for this as a very positive move to help people into work and would recognize the huge difference this small increase would have on the incomes of beneficiaries in part time work.

"If the Government truly believes that paid work is the path from poverty and dependency this needs to be supported by more than empty promises."

The Wellington People's Centre is a non-government agency providing low cost high quality health and advocacy services to people on benefits and low incomes. Advocacy and support is provided to beneficiaries and agencies throughout NZ.

ENDS

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