Change In Abatement Threshold Needed To Lift Underemployed Out Of Poverty – Auckland Action Against Poverty
Auckland Action Against Poverty is calling on the Government to increase abatement thresholds and lift benefits to liveable levels to support people affected by the growth of unemployment due to COVID-19.
“Unemployment numbers do not tell us whether people are receiving enough income to live with dignity. While unemployment may have slightly decreased, more people are working less hours than they need and beneficiaries continue to be impacted by the rising cost of living”, says Brooke Fiafia, Auckland Action Against Poverty Spokesperson.
“The focus by the Government needs to go beyond the narrow vision of keeping people employed, but rather ensuring everyone has enough income to cover housing costs, bills, and all other basic expenses. Recognising that people do critical labour to sustain our society outside of paid work, such as caregiving and community service, requires us to acknowledge its value and fight for anyone living below the poverty line. The growing inequality resulting from the effects of COVID-19 means there will be a group of people who will inevitably be unemployed or in part-time casualised employment. We as a nation have an opportunity to ensure no one is left behind.
“The Income Relief Payment showed us that the Government can act boldly to introduce a new benefit type and make drastic changes to our welfare system to lift people out of poverty. Now is the time to permanently lift incomes and ensure that people do not miss out on income support because they are in part-time employment.
“Our low abatement thresholds mean a jobseeker beneficiary would start losing their benefit once they earn over $80 a week. We are calling on the Government to individualise benefits, increase them to liveable levels and shift the abatement threshold to at least $50,000, with an abatement rate of 20% so that everyone, no matter their employment status doesn’t ever have to choose between paying their food or covering their rent”
The abatement rates haven’t been raised in 20 years . You can earn another $80 per week on a benefit but that is gross, so the post tax net cash amount is $60 per week .Its way out of date .
Adjusting for inflation over that 20 year period the amount beneficaries should be able to keep today, would around $150 pw. Which is a fair go .
With some 346,000 semi /underutalised/under employed people on a benefit with sporadic temp/casual/partime or contract work this is a major policy oversight .
The fragmentation of work through automation and the increasing casualisation of the work place with fewer people needed for full time jobs ,means this is this growing rapidly area .And sets up a cyclical poverty trap .
Declare extra money to Winz and you are legal but below the poverty line , keep the extra for emergencies then its non disclosure and therefore benefit fraud .Its an outdated catch 22.
Add in the double impact of covert and it will stress this group more . Particularly women who will have fewer hours in tourism.retail and hospitality .
The expert working group on welfare reform 240 pg report did bring attention to this but as yet the government response has been window dressing at best , raising the amount you can keep per week by around $5.Its a piss take with some sparklers and candy floss PR spin.
The welfare system was designed to put people back into full time work but the world has changed . Many of the people living precariously may never have a full time job ,ever .Our current Welfare system isn’t fit for purpose .we need a polemical change in thinking not just a tweak .
It may have been NZF which has prevented serious Welfare reform but either way the current Govts lack of vision and lack of meaningful action in this area has been utterly appalling.
I usually put a Labour electorate sign on my fence, in every election for 18 years but not this time .Im just too pissed off .
A+ on covert and gun control , but on signing TPPA /no tax reform/no benefit reform/ no electric car subsisdies and on and on they have done bugger all for real vision and progress .
Lets hope they lose the handbrake of Winston and we may see some real change .
I think its time for a green sign.