Covid 19 coronavirus: Hundreds lose aid payment, but no jobs in sight

By Sarah Robson of RNZ

Hundreds of people are exiting the government’s 12-week Covid-19 income relief payment, never having found a new job.

The special pay is for people who have lost their jobs due to the pandemic, and those who do not have a full-time job can receive $ 490 per week.

Figures from the Ministry of Social Development show that in the last week of August, 560 people reached the end of their right.

In that same week, only 162 had their right canceled because they had found a job.

Infometrics senior economist Brad Olsen said few employers were ready or able to hire.

“What we have seen continuously, particularly since the Covid-19 resurgence in Auckland, is that business confidence has plummeted and the willingness of a company to onboard a new worker is very, very low at the moment.”

Since March, 77,000 people have ended the Covid job search benefit or income relief payment.

Olsen said many of them could be out of work for some time.

“Competition in the market will be so intense and there will be so few positions on offer that many will continue to look for work even after this payment ends.

“And for those people, it remains a difficult proposition of how to keep yourself and your family fed and with a roof over your head.”

‘I haven’t even told my parents’

Kevin had worked in retail as an assistant manager for nearly three years, but towards the end of the first Covid-19 crash, he was fired.

“It’s stressful. I want to be angry, but I can’t really be angry because no one wanted Covid-19 to happen,” he said.

“I can’t really be mad at the company for letting me go, because they had to do what they had to do to survive.”

Kevin has been receiving the income relief payment from Covid, with a bit more of a lodging supplement, but it sells out this week.

Despite searching Seek and Trade Me and submitting countless applications, he has not been able to find a new job and his only option will be to continue the profit.

You will continue to receive the accommodation supplement, but the base fee for job seeker support is about $ 250, about half the Covid payment.

Kevin said he is trying to cut down as much cost as he can so he has enough money to pay for rent and other essentials.

“I already cut my electricity, so if I really don’t need it, I just use the light on my phone … so I don’t have to pay a big energy bill,” he said.

“I’m trying to cut costs as much as possible, but I’m concerned that if I get the Jobseeker plus a hosting benefit, it will be enough.”

Kevin insists that he doesn’t want to be a burden to anyone.

“I haven’t even told my parents,” he said.

“I told you that I was fired, but I have not told you that the income relief payment that I am receiving from the government will come to an end, I don’t want you to worry.”

Kevin said he was grateful for the support he’s been able to get, but what he really wants is a job.

Some may not be eligible for benefits

University of Auckland sociologist Louise Humpage, along with the Child Poverty Action Group, Auckland Poverty Action and FIRST Union, is surveying people about the Covid income relief benefit and payment for compare your experiences.

While those receiving the Covid payment get a higher amount and might have savings to take advantage of, Humpage said they also reported higher levels of mental stress.

“We can see that they have actually had significant drops in income, most of them were earning between $ 500 and $ 900 a week and in fact we have a significant proportion earning more than $ 1500 a week.

“So that’s a big drop to $ 490.”

Humpage said that many people who come out of the Covid payment may not even be able to get the benefit, because their partner is still working.

“Most of them have said that they probably or definitely would not survive on the lowest pay they would receive, or in fact, they may not be eligible if their partner works.”

Anyone who loses their job between March and the end of October due to Covid-19 is eligible for the Covid income relief payment.

So far, about 25,000 people have adopted it. Applications will close in mid-November.