Saturday, September 26, 2009

Why choosing a benefit is rational

The following chart is from a report called Dynamic Benefits and is based on UK data. The UK has a lone parent benefit rate similar to NZ in its generosity.



Note the statement under the figures - ...life choices other than work are realistic and even rational ones to take.

Here is a rough comparison for New Zealand. The median weekly income from working is taken from NZ Statistics Income Survey with 20 percent tax applied. The others are the result of some googling and are fairly arbitrary. The benefit incomes include other top-ups like accommodation supplement, family tax credit, etc.

Occupation/ Net income p.w. from median female wages

  • Single person out of work $250 (all benefits)
  • Median weekly income 15-24 year-olds $384
  • Waitress/Bar staff/Cleaner $400
  • Receptionist $415
  • Hairdresser $418
  • Single parent with one child out of work $430 (all benefits)
  • Shop Assistant $448
  • Typist $512
  • Librarian $544
  • Nurse $569


Seriously, if you had no or few school qualifications or little work ethic/inclination, why not choose motherhood?

7 comments:

Berry said...

Keep rubbing it in Lindsay, even if you're the only one calling in the desert....

Anonymous said...

I'm counting down the years to my gold card and universal super.

Compared to the young people of today I'm getting my share at the other end of the scale. The young can teach us older types a thing or two.

Dirk

mojo said...

Indeed ... & why not maximise that by having more than one to the same chappy (or different fellas doesn't really matter),retain the relationship, separate the households and kids, and do it in a university town, greater kudos is to be realised ... nothing should get in the way of further study.

Maximising benefits is understandable, is logical ... and pursuit of this is a viable lifestyle choice, beit publicly stated or not, and without any associated stigma.

brian_smaller said...

Another reason why Western society is stuffed.

Chaucey said...

Really interesting to see how raising children fits in dollarwise to a scale of careers. It sure does make it seem pretty appealing if you have no particular qualifications.
Have your children when you are single and young, then later when they are off to school you can study and get an actual career... I guess unless societal or financial pressures increase then this won't change.

Beverley said...

Lindsay,

Does 'all benefits' include special allowances, say for extra education? Is it the same if the DPB recipient is living at home with parents? The figures Paula Bennett releaseed for the two DPB recipients were much higher than $430, were they not?

Beverley

Lindsay Mitchell said...

I have given the average based on a published figure from 2004 ($415) and boosted for CPI adjustment and change to family support. It may be a bit higher but I didn't want to be seen to be exaggerating. Of course individual amounts will go higher with additions like disability allowances, family tax credits for extra children, training incentive allowances (or whatever replaces them), accommodation allowances, etc. hence those large weekly amounts recently publicised.