Policy Issues Arising From the Research on Budgeting Assistance

Justin Strang

The results of the research undertaken for the Social Policy Agency by the University of Otago Consulting Group on budget advice services are very positive and justify this kind of assistance to help people on low incomes. They also raise a number of issues that contribute to the ongoing policy discussion on the place of budget advisory services in the Government’s provision of welfare services ($2.3 million in 1993).

This brief comment paper discusses three of these issues: (1) the policy implications of the actual changes made by those receiving budget advice to bring their affairs into balance; (2) the sources of income and the relativity between benefit and wage levels; and (3) the effectiveness of individualised assistance through programmes such as budget advice in alleviating social problems.

The paper concludes that the results point to significant advantages in assisting people on an individual basis, but the effectiveness of budget advice services for all people on low incomes, especially long-term benefits, remains in question. In the end, however, ensuring the programme offers real gains that are recognised by the participants is the most significant factor in determining the success of budget advice and other individualised support provided throughout the state sector.