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Unemployment Low, Welfare Spending High

Unemployment Low, Welfare Spending High

11 October 2006

Treasury has today released figures showing Welfare and Social Security spending is up again by 6.5 percent.

"With the second lowest unemployment rate in the OECD we have yet to see this reflected in a reduced welfare bill," according to Lindsay Mitchell, welfare commentator.

Year to June 2006 spending has risen to $15.598 billion - a 6.2 percent rise on the previous year at $14.682 billion. A higher figure than when unemployment raged in the early nineties.

Although unemployment and DPB spending is down slightly, sickness and invalid benefit spending is up. The largest increases occur in Super and Family Support payments for children.

"While DPB expenditure is down by three percent much of the extra $439 million in Family Support goes to DPB beneficiaries."

"These latest figures show that the government is making no headway in its struggle with the dependence culture."

ENDS

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