Government acts under urgency to steal millions in entitlement from beneficiaries

The government is attempting to urgently pass a bill to remove the entitlement to Millions in backpay owed to beneficiaries, after W&I has failed to follow the law since 3 June 1998, and has been granting benefits a day later than the legislation dictates.

Kay Brereton Benefit advocate says:
“Hundreds of thousands of people have had their benefits paid a day late because MSD has administered the law incorrectly since 3 June 1998. This ‘mistake’ was revealed in September and since then thousands have sought a review to be paid their day. People have been being paid with an average payment of $80 each, and it is estimated the total underpayment is in excess of $100 million.

Today in parliament the Minister introduced a bill under urgency to prevent people accessing their legal entitlement. and to try to stop further payments of arrears, as well as to make it law that benefits are paid a day later than under the current law.

This is money that people were, and still are entitled to under law, this is money that could have gone into local economies before Christmas, but the government is seeking to stop the poor from accessing their entitlement.

There is a significant equity issue here, if a person on a benefit fails to meet their obligations under law they are sanctioned, overpayments are not forgiven. Yet in this case MSD has failed to meet its obligations under law and has been granting benefits a day later than the law dictates, and this bill is going to forgive the debt owed to beneficiaries, while the Ministry continues to enforce collection of overpayments.

The introduction of retrospective legislation to remove legal entitlement from our poorest citizens is reprehensible, and an unjust exercise of parliamentary power. This is a change that bypasses the democratic process and excludes the citizens voice that is expressed through the select committee process.

If for example IRD had been taxing people an extra $50 a year would the public accept a retrospective law change to remove the liability, or would they expect a refund?

I say that the people of NZ say NO, we don’t treat people this way, all citizens have the right to access their legal entitlements, and to be treated fairly and with respect by our government and its employees.”

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