Assets not part of means test

Press, 21 April 1979, Page 22

Assets not part of means test

Assets are not taken into account in the means test applied on applications for unemployment benefits, says the Christchurch director of the Social Welfare Department (Mr C. L. Waters). Mr Waters was asked to elaborate on the test after a correspondent, R. G. Dawson, wrote to the editor of “The Press” alleging that an employee of the Labour Department had told him there was no means test, yet Mr Waters had been quoted in “The Press” later as saying there was. Mr Waters said that the first $lO of earnings was exempt from the means test. Any income in excess of $lO was deducted from the benefit, so that, for example, if a person earned $l2 a week his benefit would be reduced $2. Assets such as a house or car were not subject to the means test, nor were investments, but any income from the investments were taken into account.

An unemployed person can receive a full benefit provided his earnings do not exceed $lO and total income from other sources does not exceed $l5. But if he receives $l5 a week in earnings and $lO a week in other income, his benefit will be reduced $5 a week. Income of more than $25 and less than $4O results in a deduction of 8c in every 20c of benefit, while income of more than $4O results in a deduction of 16c in every 20c. The district superintendent of the Labour Department (Mr W. T. Holland) said that there had obviously been a misunderstanding over the means test as far as the correspondent’s dealings with his department were conc e r ne d , because employees were instructed not to give any opinions about benefits as it had nothing to do with the Labour Department. “If the correspondent likes to contact me I will investigate the matter further,” he said.