986 lose benefits after going abroad

Nearly a thousand Northlanders have had their benefits cut last financial year for travelling overseas without letting officials know.

Nearly a thousand Northlanders had their benefits cut last financial year for travelling overseas without letting officials know.

Ministry of Social Development figures show 986 Northlanders had benefits cut for going overseas without telling Work and Income. That was down on the previous year's 1050. Benefits related to jobseeker support were those most often cut.

Whangarei Citizens Advice Bureau co-ordinator Moea Armstrong said some people received a "nasty surprise" if they went away for a week then came back and realised they had no benefit. She thought the main reason people failed to tell Work and Income about their travel was because they were unaware they had to.

The Citizens Advice Bureau told beneficiaries planning to travel they had to notify Work and Income before leaving and let them know how long they'd be away.

However, locals were more likely to seek advice on the travel issue after they'd had their benefit cut.

Ms Armstrong said Work and Income was always open to talking to those people. She thought people were probably getting better at telling Work and Income about their travel plans, given numbers of cut benefits had decreased.

Nationwide, 31,714 New Zealanders had their benefits cut for undisclosed overseas travel last financial year, compared to 35,565 the previous year. Jobseeker support was the most cut.

Ministry of Social Development service delivery deputy chief executive Carl Crafar said welfare reforms came into effect in July 2013 to put stronger obligations on beneficiaries. They included changes to the rules around when people could be paid a benefit while overseas.

All beneficiaries were now required to tell Work and Income about their travel intentions or their benefits were stopped on departure. The rules were consistent across all benefit groups, said Mr Crafar.

He said the rules still allowed for overseas travel on compassionate or health grounds in certain cases.

To support the changes, the ministry enhanced information matching systems it had with New Zealand Customs.

If people hadn't told Work and Income about their intention to travel and an automatic information match was made, their benefit would be suspended and they would receive notification. The suspension would remain in place until they returned and contacted Work and Income, said Mr Crafar.