Plan to boost allowance, two benefits

WELLINGTON: Under Labour’s welfare plan, the training incentive allowance for higherskilled courses would be reinstated, and people on a benefit and working parttime would be able to earn more.

Social development spokeswoman Carmel Sepuloni announced the party’s policy on Saturday.

Ms Sepuloni said this allowance was an investment in a family’s future, and one she herself had used in the past.

‘‘Access to support for higherlevel courses under the TIA was taken away by National, despite the responsible minister Paula Bennett herself having benefited from this support.

‘‘Labour is putting the ladder of support back in place after National pulled it up behind them,’’ Ms Sepuloni said.

In 2018 about 900 people accessed the allowance; if people could get it for degreelevel study that would boost those numbers initially to just over 6000, rising to 15,000 in later years.

People can get up to $112.89 a week, with a total maximum of $4515.60 a year, and it can be used alongside student loans and childcare assistance.

It is targeted at sole parents, disabled people and their carers, and provides extra support towards the cost of study.

‘‘Research shows those who gain higherlevel qualifications are more likely to get a job, build a career and earn more,’’ she said.

‘‘This support is critical to ensuring that our people continue to develop the skills

needed for New Zealand’s economic recovery and rebuild.’’

The policy will cost about $431 million over four years, and about $187 million in capital over 10 years, and will be paid for out of the Covid Response and Recovery Fund.

The thresholds will also increase for the Sole Parent Support benefit and the Supported Living Payment.

‘‘This will enable people to keep more of what they earn and increase the financial incentive

to stay in or take up parttime work,’’ Ms Sepuloni said.

‘‘We know that parttime work can be an important step toward fulltime work, but the current thresholds can make it hard for people to enter the labour market or take on more parttime work. It also means lowincome families don’t get to keep extra income they earn that could help them get by.’’

This change would benefit up to 30,000 New Zealanders, for some people up to $70 a week.

At present, if someone is receiving the Jobseeker Support unemployment benefit and earns more than $90 per week, they will lose 70 cents of their benefit for every $1 they earn.

For sole parents who are receiving the Sole Parent Support benefit and disabled people or people with longerterm health conditions on the Supported Living Payment, they can earn up to $115 before their benefit is reduced by 30 cents for every $1 they earn.

They then have a second threshold of $215, and every $1 earned after this is reduced at 70 cents per dollar.

The estimated cost is up to $320 million over four years. The additional costs of yearonyear increases in line with the minimum wage were already committed in Budget 2019.

As part of its Covid response, the Government boosted main benefits by $25 a week and doubled the Winter Energy Payment for this year. — RNZ