Downtown Community Ministry

Bulletin

28 February 2007

Imagine living on $16.93 a week?

Armed with bank statements and confused why he had so little to go by each week a client came into Downtown Community Ministry for some answers.

Normally he's left with just over $80 so we understood his surprise when the Inland Revenue Department started making large deductions out of his benefit for child support payments.

IRD informed Community Social Worker Dougal Speir that the deductions were based on last year's income when the client was working fulltime.

But now he's on the Unemployment Benefit and feels the impact of the deduction twice as hard.

Dougal questions the wisdom of IRD that uses a previous earning period and lets it impact on a current one.

He suggests the deductions should be calculated based on the current period especially when the person is on a benefit.

The client tells us that IRD notified him the deductions were about to begin but he received no information about how much it would be.

Now the questions have been answered there is less confusion for the client but he still remains in this difficult position.

ENDS

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