World news

Pushing those on the DPB to work

The NZ Herald reports:

A sole parent with three young children paying the $332 average rent for a three-bedroom house in Papakura would get $206 in family support and $165 in accommodation supplement on top of the $278 DPB, a total of $649 a week.

Lets assume that she could walk straight into a job.

What would happen if she got a job for 25 hours a week at $20 per hour, or $500 per week – by no means the minimum hourly rate.

Firstly, because she is working more than 20 hours, she'd get the in work tax credit. She’d get $500 ($407 net) a week in income. Her family support will be the same, her accommodation supplement would reduce just $5.00. But the $60 In work Tax Credit bumps up her income to $833.00 - an extra $184.00 per week .

Sounds good. But even if she get 20 hours free, she`ll still be paying at least $180 a week in childcare and after school care, assuming she has two preschoolers at the right age and one child who is at school - leaving her nothing extra to pay for transport to get to work and clothes to wear to work.

Would you work for about $1.00 extra an hour? If so, what would you do if your child gets sick? What would you do if you cant get 20 hours free childcare because your childcare centre doesn't offer it or your kids are the wrong age?

If she got a job for $17.50 an hour for a 40 hour week - that’s $700 ($562 net) - she`d get $110.00 accommodation supplement and the same WFF assistance – totalling $878.00. That is $229 extra than the benefit and allowances.

Even better. But after child care costs, an income of $36,400 would leave her less than $50.00 extra to pay for transport to get to work and clothes to wear to work.