Social Services Minister Steve Maharey says he will act quickly over claims by welfare organisations that the Department of Work and Income has denied beneficiaries and low-income earners their full welfare entitlements.
Reports by the Wellington Downtown Community Ministry and the Wellington People's Centre claim only 11,000 of 176,000 households entitled to extra assistance in the form of a special benefit to cover basic living costs are receiving their full entitlement.
The poorest 175,000 households are missing out on an average of $1100 a year and the department is not telling people of their entitlement, say the reports.
Mr Maharey said there was some confusion as to what was an entitlement and what was a discretionary benefit and he would act quickly to clarify the situation.
"Official advice is that the Department of Work and Income has been operating within the law and the relevant ministerial directive," he said yesterday.
The reports underlined the importance of simplifying the welfare system and clarifying the rights and obligations of beneficiaries and the Government, Mr Maharey said.
Ray Smith, national commissioner for the Department of Work and Income, yesterday rejected any suggestion the department had acted unlawfully.
"The special benefit is a highly discretionary benefit and not an entitlement. It is intended to be a short-term benefit that alleviates hardship for those who have unusual needs due to special circumstances," he said.
While there had been a decrease in the number of people receiving the special benefit over the past five years, it should be viewed in context of the overall significant increase in other extra assistance paid to people in need, Mr Smith said.
Green Party social services spokeswoman Sue Bradford said the reports confirmed her worst fears that beneficiaries were being denied their full entitlements either deliberately or through poorly trained staff.
She called for beneficiary advocate groups to be involved in training department staff.
"Steve Maharey has long told us he wants front-line Department of Work and Income staff making sure beneficiaries are receiving their full entitlements. This is clearly crucial and the Greens think it is very important that beneficiary groups are now involved in the training of these staff," she said.
The Council of Christian Social Services called on the Government to act for the beneficiaries identified as missing out on the special benefit and asked for an apology to those who had had their entitlements denied.
The two reports highlighted a major reason people on low incomes had to turn to emergency services to make ends meet, said council poverty spokesman Campbell Roberts.
"Every day our social service agencies deal face to face with families and individuals who are struggling ... To find out now that many of their clients were eligible for extra assistance is very disheartening," Major Roberts said.
The Citizens Advice Bureau also expressed its dismay at the reports' findings.
Chief executive Rachael Le Mesurier said the department should pay the $200 million owed to beneficiaries in the present financial year and cancel debt owed to the department by beneficiaries.
She said the bureau would advise beneficiaries to go into their local department office and ask for a review of their entitlements.
- NZPA
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