Breadwinner asks: Why can't I access Government support?

Thursday, 30 April 2020

The Council of Trade Unions says with more unemployment looming, Work and Income rules on benefits for people in relationships need to be scrapped.

Wellington woman Michele Cairns says she’s spent a lifetime paying taxes – but the Government’s expectation that a household can live off one income means she can receive no support now that she needs it.

Cairns finished at her job a month ago, ready to start a new position as an accounts manager on March 30.

Then, the country went into lockdown. Her new employers told her she could not start her job until the end of April.

“I’m the main breadwinner and it was a huge hit for our family,” she said.

* Frustration over Government welfare inaction

Her husband works for a business that supplies cafes and restaurants.

For now, he is receiving the wage subsidy and is on 80 per cent of his $47,800 annual income.

“It took Work and Income two-and-a-half weeks to tell me I can’t get the benefit because of my husband's income, but he only earns enough to meet our rent and keep food on the table. What about our power and other bills?”

Michele Cairns is upset at the lack of Government support available.

She said it seemed out-of-date that someone could not access a benefit if they had a working partner.

“My husband and I have always had separate accounts. I have always paid my taxes as an individual, and in my time of need the Government should support me as an individual.”

The couple has one child at home and Cairns said they had been living off her overdraft until she was able to start her new job, on limited hours, this week.

On Jobseeker Support, couples can only earn up to $90 a week between them before it starts affecting the amount that is paid. A single person can earn up to $90 individually.

University of Auckland associate professor Susan St John said it was an antiquated policy that was out of step with modern work patterns and relationships.

“Who decides when two people who happen to live together should be classified as in a relationship?

“The rules have been quite draconian and capture people in new and short-term relationships. Basing access to income support on total family income is not how we treat couples for tax, or for accident compensation, or for NZ Super. For two low-income earners, each needs their own income for basic survival - when one loses their job, or get sick they should be entitled in their own right to a full benefit regardless of whether they are married or not.”

She said worries about the partners of high-earners claiming a benefit could be addressed with an income limit, such as $50,000.

“A rort by the rich is unlikely. Remember that being on a welfare benefit is not pleasant experience and entails a raft of obligations that Work and Income impose.

'We don't aggregate incomes for tax and make married people pay more tax - they should not get less income support simply because of their relationship status.“

Changing the relationship rules was a recommendation made to the Government by the Welfare Expert Advisory Group last year, along with increasing benefit rates.

Last week, the Council of Trade Unions and First Union added support to an open letter to the prime minister calling for the relationship rules to change.

ActionStation Economic Fairness Campaigner Ruby Powell said couples dating for anything from six weeks could be deemed to be in a “relationship in the nature of marriage'.

“We won’t rebuild a strong economy by locking people into poverty and stress as soon as they become unemployed, which is what our welfare system currently does. Benefit rates need to urgently go up to liveable levels, and rules that prevent couples getting support scrapped.”

Cairns had applied for an accommodation supplement but said she had still not had a response.