Officials confused de facto facts

The Government faces paying million of dollars to rectify errors made in determining beneficiaries' entitlements between 1996 and 2000.

The payments will be made to people who had their benefit stopped, or were ordered to pay it back, because the wrong rules were used to decide their de facto relationship status.

"We're not entirely sure how many people this might apply to," Associate Social Services Minister Ruth Dyson said yesterday.

She said the Ministry of Social Development wanted people to come forward if they thought they were incorrectly tested.

She said the entire benefit system was complicated and up to 15,600 cases would be reviewed.

The problem has arisen because in 1996 the Court of Appeal ruled that de facto relationships had two essential features - emotional commitment and financial interdependence - and that the effect of violence in a relationship had to be taken into account when assessing these features.

But a report by Auckland lawyer Frances Joychild concluded that Work and Income NZ did not consistently implement the court's ruling until late 2000.

Ms Dyson said that if just 1 per cent of the 15,600 cases involved repayment, it would cost $3.6 million.

Cases are to be reviewed by a three-member panel made up of two ministry officials and an independent member. A campaign to advise people of the review will start on Monday.

- NZPA