Thursday, 20 May 2021, 2:02 pm
The Government, Business NZ and the New Zealand Council
of Trade Unions (CTU) are jointly designing a Social
Unemployment Insurance scheme that would support workers to
retain about 80 percent of their income for a period after
they lose their jobs. This delivers on a commitment in
Labour’s manifesto.
“As we secure our recovery
from COVID-19, we have an opportunity to better support New
Zealanders who lose their jobs through no fault of their
own,” Minister of Finance Grant Robertson said.
“A
Social Unemployment Insurance scheme would strengthen the
safety net we have in Aotearoa New Zealand, and would be an
Photo: RNZ / Samuel Rillstone
The government will implement the increase in two stages, with the first being a $20-a-week increase from 1 July this year.
A second increase will occur on 1 April next year, bringing benefits up to the levels recommended by the Welfare Expert Advisory Group.
Whānau with children will be topped up an extra $15 per adult, per week.
It is projected the changes will lift between 19,000 and 33,000 children out of poverty on the after-housing costs measure in 2022/23.
On the before-housings costs measure, that figure is between 12,000 and 28,000 children.
All up, the increases to main benefits will cost $3.3 billion over four years.
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