New report shows hardship grants increase 49 percent since 2015

A new report shows almost half a billion dollars was paid out in hardship grants during the last financial year - with one beneficiary claiming almost $50,000 in 223 grants.

Figures released as part of the Ministry of Social Development annual review show over 1.2m hardship grants and payments were made to clients in the 2018 fiscal year, an increase of 49 percent from 2015.

"In the last financial year $480 million was paid out in hardship grants, with each client receiving an average of $1500, however in many cases that's higher," says National's Social Development spokesperson Louise Upston.

"New Zealanders are doing it tough under this Labour-led Government. Tax after tax is being piled on, petrol prices and rents are increasing. More and more Kiwis are struggling to put food on the table and a roof over their head."

The review showed in the year to June 30 2019, one individual received assistance on 89 occasions, resulting in 223 grants with a total value of $49,725. This individual is currently the subject of an investigation.

But while grants are increasing, the figures show beneficiaries have fallen deeper into debt under Labour.

Latest statistics show loans by Work and Income have skyrocketed by $100 million compared to 2014.

And the amount from overpayments also increased to $990m from $739m in 2016-2017.

In a response to Newshub, Minister Shane Jones said when people need assistance the Government will provide it.

"That need had always been there but under this Government people are more willing to ask for help because they know they won't be judged or turned away," he said in a written statement.

"MSD has been told that people should be able to access their full and legal entitlements. These numbers reflect that.

"There has been no change in qualification or criteria for hardship grants. People who receive them are entitled to them."