The increase in allowances gives students $50 a week more than beneficiaries.
This begs the question Naitonal’s tertiary education spokesman Paul Goldsmith asks – how do you ensure the allowances aren’t rorted?
Labour must explain how it will ensure that people are enrolled in tertiary study for genuine reasons next year and not to exploit the increase in student allowances, National Party Tertiary Education Spokesperson Paul Goldsmith says.
“The $50 a week increase in allowances will no doubt be welcomed by students, but it’s likely also to be welcomed by those who realise they’ll pocket more money each week if they enrol in tertiary study than if they stayed on their benefit,” Mr Goldsmith says.
“Student allowances have previously been pegged to the jobseeker benefit so there wouldn’t be any perverse incentives for people to enrol in tertiary study even if they had no intention of studying.
Why should students get more than beneficiaries when the average graduate will earn around $1.5 million more over a working life than someone without a tertiary qualification?
Why should poor people, including beneficiaries, pay tax to give students more?
“But now that’s all changed, and the zero-fees policy will make it worse.
“For example, the student allowance entitlement for single people 24 years and over without children is $212.45 per week; which matches the jobseeker support entitlement for single people 25 years and over without children.
“By increasing student allowances by $50 a week, a person in this scenario will soon receive $262.45 – 23.5 per cent more than if they remained on the jobseeker benefit.
“While all Kiwis would like to see unemployed New Zealanders engaging in genuine study, decoupling student allowances from benefit levels opens the system to abuse.
“With all tertiary courses free from next year, what’s to stop any sensible beneficiary taking advantage and enrolling in study in order to pocket an extra $50 a week?
“It’s like having a new super jobseeker benefit with no strings attached.
“Labour needs to explain to New Zealanders how they will ensure public money will not be squandered on courses for people who have no intention of completing their course. . .
Having people, especially young ones, studying rather than on a benefit ought to be better for them and the country.
But it won’t be if people do the maths and enrol at a tertiary institution simply to claim the allowance.
They wouldn’t get away with it for long – if they don’t pass their courses they won’t be able to continue.
Failing will also mean that if they decide later to enrol as genuine students they won’t be eligible for allowances or interest-free loans.
But if they don’t think, or don’t care about the consequences, or are desperate enough for an extra $50 a week it would be very tempting to enrol regardless of how that might affect them in the future.
Homepaddock 