A decision by the Department of Work and Income to appeal a landmark High Court decision has led the Beneficiary Advisory Service to accuse the department of trying to be above the law.
A Christchurch invalid beneficiary successfully challenged the department in the High Court over its refusal to grant
her a special benefit to cover expenses, including loan repayments.
The decision means beneficiaries may be eligible for millions of dollars in extra assistance.
The invalid took out a loan to pay everyday expenses and medical costs after becoming a beneficiary because of chronic and debilitating arthritis.
She sought a special benefit when servicing the loan exceeded her income, but after Work and Income turned her down three times she took her case to the High Court.
Advisory Service spokesman Jim Little said the Ministry of Social Development, which controls Work and Income, had made an "appalling" decision to appeal the case.
"What the Government has done is spent tens of thousands of dollars stopping someone getting a few hundred dollars. It's not giving them more than they need, it's giving them almost as much as they need."
Mr Little said the special benefit was to cover expenses for a limited period. The beneficiary was typical of many people who, through no fault of their own, were stuck in a situation of "ongoing grinding poverty".
As beneficiaries cannot afford lengthy court cases, it was easy for the ministry to feel it was above the law, he said.
"They [beneficiaries] have to get legal aid, have to have a good case, have to have persistence, and have to find a lawyer who knows what they're doing."
Mr Lamb said he expected the Advisory Service would win the appeal, but it could help only a limited number of people.
"We win these cases time and time again because the law is on our side. What we worry about is all the people who can't get to us who end up not being properly paid out."
A ministry spokeswoman declined to comment.
- NZPA
