Temporary assistance for low-income workers

The Government will lift income limits for workers receiving hardship support for four months to make it easier to get help for food and other emergency costs.

The $9.6 million package was part of the Government’s Covid-19 plan announced yesterday.

The temporary income limit increase applied to the Special Needs Grant and Advance Payment of Benefit, which in most cases did not have to be repaid.

It also applied to the Recoverable

Assistance Payment, which did have to be repaid.

The income limits for assistance will increase to 40 hours at the minimum wage, or $800 per week and $1600 per week for a couple with or without children, Social Development and Employment Minister Carmel Sepuloni said yesterday.

The income eligibility criteria change will be between November 1, 2021 and February 28, 2022.

‘‘We know the extended Covid-19 restrictions are having an impact on low income households who tend to have less certainty of work,’’

Sepuloni said. ‘‘Currently a single person working 30 hours per week on the minimum wage is not eligible for hardship assistance from Work and Income. Expanding the income limits for Hardship Support will mean more low income individuals and families will be able to get support.’’

Up to 25,000 additional grants are expected to be made for items such as food and clothing, and for power bills, to people not currently getting assistance from the ministry.

Economist Susan St John, Auckland University Associate Professor and spokesperson for the Child Poverty

Action Group, said the increase would not help the people who were most in need.

‘‘It’s not that it fixes anything systemic and it’s temporary, so the extra access to these grants is going to finish, it’s just a one-off temporary Band-Aid for a very tiny group who are working 40 hours at the minimum wage,’’ she said.

‘‘It isn’t touching those families that have lost work, it’s not dealing with the children – children are invisible, and yet we know low income children have been extremely badly impacted by this Covid recession.’’