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DPB Cost Grows From $250,000 To $2.3 Billion

DPB Cost Grows From $250,000 To $2.3 Billion

The original estimates for the cost of introducing a Domestic Purposes Benefit were $250,000 according to Lindsay Mitchell, petitioner for a Parliamentary review of the DPB.

"In October 1972, Labour MP Norm King, asked the then Minister of Social Welfare what the estimated cost of social security benefits for solo parents and women would be. The Honourable Lance Adams- Schneider replied, 'The cost of the proposed domestic purposes benefit is estimated at up to $250,000 a year.' "

"Today, the all-up cost of the DPB, along with accommodation supplement, family support, special benefit, childcare subsidies, etc., amounts to around $2.3 billion. Add to this the benefits paid to other single parents and we are spending around $2.5 billion," said Mitchell. "Original estimates for supporting sole parents have ballooned from $250,000 to $2, 500,000,000. This is incredible."

"Even adjusted for benefit inflation the original estimates would today translate to $5.9 million."

"Only ten percent of the DPB bill is actually picked up by the liable parents. The rest is paid by the working taxpayer."

"To get this level of government spending into perspective $2.5 billion is $1 billion more than it spends on Law and Order and double what it spends on either Defence or Transport and Communications. "

Lindsay Mitchell Petitioner for a Parliamentary Review of the DPB e-mail dandl.mitchell@clear.net.nz ph/fx 04 562 7944

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