The New Zealand Herald reports that Social Development Minister Paula Bennett has compromised on cuts to Training Incentive Allowance for single parents and those on invalids’ benefits in tertiary education study. She announced yesterday that the allowance will be replaced with a new loan of $500 for those studying in nursing, medicine, midwifery, vetinary science, and teaching courses.
The” $500 interest-free loan will be available to domestic purposes beneficiaries, invalids, and widows benefits, as well as those on the emergency maintenance allowance, and will be available from February 2010 to January 2011. The minister expects about 800 people to use the loan.
Under the old Training Incentive Allowance, successful beneficiaries were en pd to a maximum of $3862 a year for childcare, course costs and transport.
The newly proposed loan follows” controversy over Ms Bennett’s decision to cut Training Incentive Allowance earlier this year.
Ms Bennett told the” Herald the loan was not a concession that she was wrong to restrict the Training Incentive Allowance, saying difficult economic conditions meant resources had to be focused where they were most needed. However, she had received a number of letters making a “compelling case” for extra help for those who faced extra costs and were limited in the work they could do over holidays.
The loan must be repaid at a minimum level of $4 a week, once the recipient has finished the course or goes off the benefit. It will be available from February 2010 through Work and Income.
Thanks to nznationalparty @ Flickr for the photo
