Beneficiaries up in Whanganui, but benefits are not

Whanganui beneficiaries are struggling more than ever with the cost of living, local budget advisor Sandy Fage says. PHOTO / FILE

The number of Whanganui residents receiving Work and Income benefits is up by just under 3 per cent, and more are struggling with rising costs.

And while the number of beneficiaries seeking budget advice has remained largely unchanged, an adviser says it is becoming harder for most to pay their rent and bills.

Wanganui Budget Advisory Service manager Sandy Fage said many people were struggling more with the cost of living, especially recent rent rises.

"We have clients who live in appalling conditions,"

The accommodation supplement had not been reviewed in years, she said, while rents had continued to rise.

"Some beneficiaries ... I don't know how they survive."

Ms Fage added that Work and Income was creating debt by insisting clients repay the cost of temporary accommodation.

Many beneficiaries sought help from the budgeting service due to debt and unexpected bills.

"You can't save for the unexpected when you're on a benefit," she said.

Car repairs and doctor's visits could cause clients to have to ask for advances from Work and Income or even borrow from loan companies.

"Most of our clients are on benefits and that's been standard for many years."

Some beneficiaries are required to see a budgeting adviser, particularly if they are in debt or needing an advance from Work and Income.

According to government data, the number of people receiving benefits in Whanganui rose by 2.8 per cent in the last quarter of 2016 compared with the same quarter of 2015.

This reflected an additional 142 people in the district receiving some kind of benefit.
There were 5193 Whanganui residents receiving Work and Income benefits at the end of 2016 - 2295 of these were on Jobseeker Support.

The number of beneficiaries was down 1.4 per cent nationally in the last quarter of 2016, compared to the same quarter in 2015.

However, many more people were on benefits in South Taranaki - nearly 9 per cent more than in the December 2015 quarter.

Beneficiary numbers were largely unchanged in Manawatu and Palmerston North.

Some of the biggest falls were in larger centres such as Auckland and Tauranga, but there was a 3 per cent rise in Christchurch.

Statistics New Zealand reported that unemployment was up slightly nationwide in the December quarter.

National beneficiary numbers, however, were down from 301,349 in the last quarter of 2015 to 297,010 in the same quarter last year.