An increasing number of people are applying for advances on their benefits and special needs grants to help cover the cost of utility bills, figures reveal.
Information released to the Otago Daily Times by the Ministry of Social Development reveals the amount of advances to beneficiaries has increased by a third over the last year as the recession begins to bite.
In 2007-08, the Government gave benefit advances totalling $9,138,212 (30,078 applicants), but for 2008-09 this had increased to $12,642,068 (36,607 applicants).
The average payment had increased, from $303 to $345.
A ministry spokesman said if a client was experiencing significant hardship, an advance payment of benefit could be made to assist with outstanding electricity, gas and water bills, and costs for reconnectionsClients could receive multiple payments in one year, but before an application was approved other avenues needed to be investigated, including possible arrangements with power companies, he said.
Special needs grants were also available to eligible clients facing hardship, increasing from $429,972 (1505 applicants) in 2007-08 to $732,292 (2250 applicants) in 2008-09.
Otago Presbyterian Support chief executive Gillian Bremner said the increase in people asking for an advance on their benefit indicated the "base level" of assistance was adequate.
Anglican Family Care Centre director Nicola Taylor said while it was a concern an increasing number of beneficiaries were asking for advances, the ministry "was the lesser of two evils" when faced with a disconnection notice.
Dunedin residents struggling to pay power bills could apply to the Dunedin City Council Electricity Fund, she said.
The $176,000 fund from the previous financial year ran out six months before it was due to be replenished.
