Just this month, the Methodist Alliance published their report on income security and debt to government. Part of the poverty trap is the abatement rates for those on benefits but also working — the levels at which the benefit drops supposedly to take account of wages.
What the report shows is that after between $280 and $500 a week the abatement is so severe, a single person takes home less than if they were earning just $270 per week on top of their (already reduced) benefit.
On minimum wage that’s as much as 10 hours a week of work to make absolutely no difference in your take-home pay. Why would you do it?
An unemployed 24-year-old will get $43 less a week than someone aged 25 but is likely to have exactly the same costs.
The short-term thinking that poverty causes — it is almost impossible to think longer term — becomes part of the trap.
Getting good at shaving and slicing and navigating unworkable circumstances to stay afloat in the here and now, becomes its own trap. There is no energy or effort left to work on moving ahead.
That’s why I am so pleased at the incredible work of the Mission’s Youth Transition House here in Dunedin. Along with getting in before homelessness truly takes hold, we are able to help source supports for mental health, addiction, and other issues.
Our Taituarā a Hāpori (specialist support) are there to assist with life issues, staying in education, planning for the future — that all important longer view, and finding and keeping independent accommodation. We also have back up help through our Sustaining Tenancies service if things start to wobble a bit later on.
The Youth Transition House is designed to get in as early as possible and stabilise the young person, getting the wraparound support in place, before the traps of poverty and short-term adaption are sprung.
Despite the difficulty of the work, the results after four years of operation are stunning. The vast majority of our residents have moved out and are living independently and well, with no interruption to their education and work opportunities.
If you would like to support the Mission’s work with a donation, please visit www.givealittle.co.nz and search for The Methodist Mission.
