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The Battle for Special Benefits

Dave and Sue fear their telephone may be cut off any day because they can't afford to pay the bill. Electricity has to be paid for by cash in advance and sometimes that's not possible. They are grateful for help from family and local churches to put food on the table.

Eight months ago Dave lost his bus-driving job through health problems, at a time when Sue was pregnant with their fifth child. Already burdened with heavy debts from a housing deal which went sour some years ago, the family found they had only $24 a week for food, power, phone and medical costs.

Work and Income New Zealand staff told the family the department could not help. But through their involvement with the Titahi Bay Baptist Church and St Mary of the Angels in Wellington, the family was encouraged to approach the Downtown Community Ministry (DCM) for advice.

"We found out what sort of money we were supposed to be getting," says Sue. The couple gave a DCM representative the right to act as an advocate for them, and as a result they have found the department much more helpful.

Three months after the urgent need arose, their application for a special benefit was approved and their arrears paid. While they still need help occasionally to challenge certain decisions WINZ staff make, Dave and Sue say they usually receive enough money now to at least buy necessities
such as food and formula and nappies for the baby. "We lived on Weetbix and rice for a long time," says Dave. "It's been hard, very hard."

Only prayer and the hope they gained from Bible readings enabled them to survive as a couple through that time of stress, he says. Emotional and physical health problems suffered by a son and daughter add to the family's problems.

The family is hoping to receive enough money from Work and Income so they can afford to keep the phone. But school camps, visits to McDonalds and family holidays will have to wait. Fortunately Dave's health has improved, and he has been offered a job as a postie, starting soon. "I'm a worker," he says proudly.

But the couple are concerned that others might still be suffering needlessly, and have joined Benefit Rights to help make others aware of their full entitlements.

"The amount beneficiaries get is nowhere near enough," says Sue. "The price of food and other things keep going up, but your benefit doesn't."

The Wellington DCM is one of several beneficiary advocacy agencies throughout the country which are arguing that special benefits have been underpaid for some years, and are challenging government to raise awareness amongst clients and staff of Work and Income (now described as a service of the Ministry of Social Development).

A report, researched by Presbyterian elder Graham Howell (see box) and others argued that of the 130,000 households which should have been eligible for special benefits in May 2000, only 11,000 were getting them. After factoring in the Housing New Zealand income related changes, the latest figures indicate 126,000 are eligible, compared to 10,000 receiving it.

Assessment for special benefit eligibility involves looking at both regular on-going costs compared to income, and also at any special or unusual circumstances which need to be considered. Beneficiary advocates say that both a ministerial directive and subsequent court cases have found that people are eligible firstly on the basis
of a regular shortfall (under a formula assessment), and any special circumstances should be considered in addition to that.

But many departmental staff have apparently been turning down or discouraging applications on the grounds that special or unusual circumstances are needed for eligibility.

Publicizing the figures has resulted in the establishment of a working group enabling beneficiary advocates to talk regularly with Ministry of Social Development (which combines WINZ and the Ministry of Social Policy) officials. "We want to try and reach agreement on what the ministerial directive on special benefit actually means and who would be eligible," says Stephen Ruth of the Wellington People's Centre.

Various benefit advocacy groups have been planning initiatives designed to promote awareness and encourage special benefit applications. One included 12 advocates from various groups meeting in Rotorua in January, being available for three days outside Work and Income offices to help people apply.

The Rotorua office was one of the regions with a low rate of special benefit recipients compared to the national average. Work and Income staff there co-operated to help benefit advocates by providing ten 'coaches' to assist with applications.

Wellington's Downtown Community Ministry is implementing a pilot project working with community agencies in South Wellington to support beneficiaries in making special benefit applications. "We want to empower community groups to provide the advocacy," Graham explains. Further national initiatives are planned.

Advocates are hoping that the Ministry of Social Development's working group will have reached agreement on eligibility for the special benefit by then. "We're hoping they'll agree that what we're claiming is correct and we can then work together," says Stephen Ruth. "If so, there will be less problems."

A spokesperson for the Ministry of Social Development commented that beneficiaries' advocates had based their case (that special benefit was under-paid) on clients' accommodation costs alone, but these were not always a clear indicator of eligibility. Each case needed to be looked at individually, she said.

It is expected that the issue will be resolved within the next six months.