Kiwis earn more before benefits cut – Govt
The Government has announced that more than 80,000 low-income New Zealanders will soon be better off by $18 a week on average.
Social Development and Employment Minister Carmel Sepuloni says from April 1, 2021 people receiving benefit payments will be able to earn more through work before their benefit payments are affected.
She says 29,500 individuals and families currently receiving a working-age benefit would be on average $29 a week better off.
"Currently, a person on Jobseeker Support can earn up to $90 a week before their benefit starts to reduce with sole parents and people on Supported Living Payment being able to earn up to $115 a week. The changes mean people can earn up to $160 a week before their benefit starts to be affected.”
Of the 82,900 people and families affected, approximately 50,200 are families with children.
She says increasing the income abatement thresholds will make it more worthwhile for people to work, and improve the financial incentives to work part-time.
“It also means people facing reduced work hours, for example because of the impacts of COVID-19, may more readily access financial assistance while staying in their job."
She says part-time work is an important step for people moving from a benefit back into full-time work.
“It helps build and maintain skills, experience and self-confidence, and keeps them connected with the workplace."
Increasing the abatement thresholds from April 1 is a total investment of $393.98 million over five years.