Morgan spruiks universal income plan
The elderly and families with young children would be the first to receive a $200-a-week ‘‘universal income’’ for all Kiwis, under a plan from The Opportunities Party.
Millionaire economist Gareth Morgan announced his party’s policy for what it calls an ‘‘unconditional basic income’’, or UBI, in Christchurch last night as its final policy heading into the election.
Morgan, who has previously talked about the benefits of a UBI, said a universal payment for every Kiwi would give them more choices on how to spend their time, eliminate ‘‘the poverty trap’’, and recognise the work done by over a million Kiwis who worked but were not paid.
The party’s policy was ‘‘starting along the road’’ to a true UBI, with the two groups the first to receive the payment.
Families with children aged younger than 3, or 6 if adopted or fostered, would receive $200 per family each week, instead of paid parental leave.
Morgan’s party would also replace the NZ Super scheme with a $200 weekly payment for Kiwis older than 65. Elderly Kiwis who satisfied a means test would receive an extra $7500 each year, topping them up to the current level of Super payments.
Morgan said the UBI for young families would be ‘‘the most potent boost to their ability to nurture their children in their most vulnerable years’’.
‘‘This change starts to honour the millions of hours of unpaid work associated with child rearing, without which our economy would collapse.’’
While a full UBI was the party’s goal, Morgan said changes to the income tax system would first need to take place.
‘‘It is unlikely that a UBI will ever totally replace targeted social assistance but it certainly will markedly reduce our reliance on targeting, with its stigma-laden selection criteria and its perverse impact on behaviour.’’
The party would also change eligibility rules for low-income families applying for the in-work tax credit, while providing free fulltime childcare for low-income working parents with children aged between 1 and 3.
Morgan said the changes would be cost neutral, with funding for families coming from changes to the Super scheme.
‘‘NZ Superannuation, the most generous of all social benefits, is just too high. It needs to come down.’’
Labour considered a UBI last year as part of its Future of Work Commission, but the idea did not make it into the final policy.