National rows back on plan to divert benefits

Judith Collins

National is looking at ways of diverting benefit money paid to some families to make sure rent and power bills are paid and children get food.

The party's welfare spokeswoman, Judith Collins, has also revealed problems with some of the party's existing policies.

They relate to an unwillingness to financially penalise beneficiaries with children who do not comply with apparently tougher welfare "requirements" National outlined before the last election.

This week, Mrs Collins revealed National was considering introducing a "smart card" plan being tested in some Australian Aboriginal communities.

Under the plan, about a third of a person's benefit would be paid into a loyalty card which could be used only at a supermarket and only on a restricted range of items.

If adopted, the card would operate on a voluntary basis, but it could become mandatory.

Mrs Collins said yesterday she would also consider giving Winz the power to deduct power and rent costs from some families' benefits without their consent.

This would not apply to most families on benefits, who managed their money well, but to those "who are clearly having trouble meeting their commitments as parents".

Mothers in Australia who saw the family's benefit money spent on alcohol or gambling had welcomed the smart card plan, she said.

Rent and electricity deductions, which enabled bills to be paid directly by Winz might be another way to control spending.

Winz allowed Housing Corporation rent to be paid directly for tenants in state houses, but would not give private landlords the same right, she said. That was wrong.

"Electricity is another one that could also be looked at ... when you find there are homes where heating is a candle and the lighting is a candle too."

"When it's their children who are suffering ... we have a duty to say 'how are these kids being looked after?' "

National's current policy says people on benefits must ensure pre-school children have health and dental checks and vaccinations, and that school-age children go to school.

Mrs Collins conceded National had never spelled out the penalties if those requirements were not met.

"I would rather us be able to look at ways of encouraging people to get their kids to school on the basis that they will have food available."

The party had also pushed for some parents to attend parenting courses, but it would be hard to make those compulsory "because there's always been the big problem for us - how you do all of this without hurting kids?"

"My difficulty is always how are you going to enforce it if they say no? "How are you going to enforce it without hurting the children? That's the hard part for me."

National has other welfare policies with "requirements", but has not spelled out the penalties for not complying.

One policy, adopted last year, says that women who have more children while on the DBP would not be automatically entitled to more benefit cash.

The issue caused internal friction and the party backpedalled, saying that did not mean women would not get the extra money.

Mrs Collins' admission on the school policy reveals the problem is more widespread.

Social Development Minister David Benson-Pope said: "In recent days I've heard all sorts of suggestions for people receiving social assistance, including direct deductions, smart cards that dictate shopping choices and a new layer of bureaucracy to administer benefits.

"None of these support people to take personal responsibility, and none addresses the only real pathway out of disadvantage - getting people who can work into good sustainable jobs."

WHAT HAPPENS NOW

* State housing rents deducted by WINZ with tenant's consent

* WINZ manages rent to private landlords for difficult tenants

* Spending rules apply only to emergency benefit

* Directs clients to budgeting services.

WHAT NATIONAL IS CONSIDERING

* Rent and power for some families may be deducted at source by WINZ

* One-third of benefit converted into "smart card" for food only.