Beneficiary debt has created a nation of debt slaves


Cost of living: MSD owed billions as families spiral into ‘crippling’ debt to government

Ministry of Social Development data shows the amount of debt owed to it has risenfrom $1.536 billion in the 2018 financial year to $2.61b as of March 31, 2024.

The amount of debt that was due to “recoverable assistance” payments had risen from $557.8 million in 2018 to $1.213b.

MSD client support group general manager George van Ooyen said increasing living costs, particularly with regard to housing, had led to a rise in demand for recoverable assistance in recent years.

“Recoverable assistance provides people with interest-free loans to help them meet an immediate need for essential items or services, like paying late utility bills or rent, buying essential household appliances, or meeting other urgent needs.

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“Repayment arrangements are agreed with the client at the time recoverable assistance is granted, taking their individual circumstances into account.”

Another $1.261b was due to people having been overpaid.

There were 623,541 individuals with debts.

I have written many posts highly critical of the culture of MSD.

Their malice, their spite, their abuse of power over the most vulnerable.

This story manages to sum up all that is wrong with MSD, they are lending money to the poorest people to buy essentials.

Lending money to the poor for the basics is corrupt social policy!

The madness is that MSD sees this debt as an asset!

They have a vested interest in loading more debt up on beneficiaries! We have loaded up billions in debt to the poorest amongst us creating debt slaves.

The state are acting like a drug dealer peddling desperation and entrapping people into literal debt coffins.

When MSD aren’t dealing in desperation loans, they are using vast mass surveillance powers to trawl through beneficiary social media accounts to catch them out in what MSD decides as ‘relationships’, and then claim beneficiaries are committing benefit fraud and then put them in debt to MSD!

MSD don’t tell beneficiaries what exactly amounts to a relationship and they do so on purpose to trap beneficiaries into a never ending debt cycle that makes them debt slaves until death,  and this is all fine according to Labour.

623,541 Kiwis are struggling with MSD debt, this is a political decision to keep the poor in debt traps so they are compliant with the way they are treated.

Social Debt is a means of control.



  1. @ MB.
    “I have written many posts highly critical of the culture of MSD.
    Their malice, their spite, their abuse of power over the most vulnerable.”
    Yes, yes you have and I think I’ve read them all and they’re all fantastic.
    14 multi-billionaires, 3118 multi-millionaires each with a starting minimum of $50 million net each and the four foreign owned bankster scum who are also the second most profitable IN THE WORLD only to Canada. anz ( jonky’s bankster bestie) bnz, arguably the dirtiest bankster of them all, asb and the parasitic aussie westpac.
    None of the above horrifying rich and bankster stats would be possible without your poverty rising from the vulnerabilities they weight you down with. The cost of housing is a scam. The price of food is a scam. The cost of electricity is a scam. Anything you can point at if it costs you is a scam.
    Is a house really an investment?
    This is why we have the second most profitable bankster crims in the world.
    Five of the cheapest Auckland townhouses for sale right now
    An Ōtara townhouse for sale for $539,000, described as “cheap as chips”.
    Quite pricy fucking chips I’d say.

  2. Horrible, just like Working for Families, the terrible, cynical, depressing, corporate welfare scheme that perpetuates a low wage economy and locks working people into years of dependency on the state.

    • What state? I can see corporate parasites. I can see neo-liberal fanatics rolling about in the money of others, I can see extreme hardship in a rich country as I’m sure our multi-billionaires, multi-millionaires and the second richest banksters in the world can also see but I’m fucked if I can see a ‘state’ which is something I assume you mean is a politic for us to best serve us? I can’t see that.

  3. All true, and as a previous beneficiary advocate I know how MSD/WINZ run their punishment maze. Not informing people of their full entitlements, “losing” previously supplied documents and information, humiliating people with personal criticism, expecting people with no resources to have enough phone data to interact with them, and on it goes. Making people beg for some money for urgent dental care, or groceries, that becomes a debt as Martyn says.

    Thousands of public servants of various stripes are being sacked at the moment and my empathy for them is tempered by the fact that many of the case managers and torturers at MSD are PSA members! The State Sector unions need to drop their faux political neutrality and take some action at least rather than issue media statements.

    • Not defending them but… As a advocate you should have known $300 is non recoverable for dental $400 a year for food is non recoverable and they have a 0800 number. Just to clarify…

    • “Thousands of public servants of various stripes are being sacked at the moment and my empathy for them is tempered by the fact that many of the case managers and torturers at MSD are PSA members!”

      Indeed!. And they should be ashamed of themselves. More often they’re not.
      I think about this sort of shit quite a bit. Ladder puller uppers often. Often egotistically driven feelings of power, and an ability to laud it all over others.
      It’s all pretty pathetic really.
      Don’t temper your empathy too much though @Tigger. This bugger’s muddle of a gummint will see the unintended quinsequinces of their policies before too long. (And when they do, rest assured they’ll be claiming victimhood – some already are)
      There’s another thing that bovvers me quite often. The relationship between so-called ‘intelligence’, and common sense (pedants might argue there’s no such thing as common sense), along with what constitutes our understanding of a man’s ego.
      That little runt Seymore (for example), is a prime example. As is ‘hold-the-ladder-steady Shane’ for that matter.
      NZ might yet get what NZ deserves if they don’t wake up soon UNFORTUNATELY. Hopefully the revenge voting that happened last, won’t become a habit

  4. Most people are debt slaves. Mortgages, personal loans, farm loans, student loans, MSD loans etc bind people more strongly than chains. Work Kiwis, work & slave for your real masters.

  5. Raised as debt slaves the system will always get it’s pound of flesh.
    An interesting situation arises in that taxation in NZ is not legal as it was never “Gazetted” hence not law, but big Government has ways of shaking you down led of course by the lawmakers.
    Most people know if you don’t supply an IRD number to your new employer you are taxed at 33% until you comply, of course most people don’t want to pay extra tax so off they trot like the good little taxation unit they are thereby acknowledging the illegal system and their authority over you.
    HOWEVER, there is a little known loophole where you can apply through a lawyer to IRD to be exempt from tax, all perfectly legal mind you and lets be fucking honest here who’s first thought was i bet those rich fuckers do it?

  6. So it’s a debt spiral?

    Pay a too small benefit. Money loaned. Repayments come out of future too small benefits which necessitates more loans.

    Is that actually how it works?

  7. In the middle Eastern pre Graeco-Roman World which embraced debt and slavery there was the problem of rich creditors becoming too top heavy and blighting the society through financial mortgage. Those societies, Sumerian, Syrian etc. solved this issue with the Jubilee Year where all debt was wiped clean. This reinvigorated things and all were able to move forward and progress.

    Point? All beneficiary debt must be wiped off the ledgers giving these people a Jubilee!

    • Deut 15:1 At the end of every seven years you shall grant a release of debts. 2 And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release. 3 Of a foreigner you may require it; but you shall give up your claim to what is owed by your brother,

    • Question Cg: were the debts reduced and cleared, there was no debt increase over last 6 years.

      We will wait for your answer, that we already know the answer to, but wish you to tell us anyhow seeing that you have clearly ignored the last 6 years…..


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