Cuts for poor, hikes for rich
Benefit sanctions will be lifted, the poorest taxed less and the richest more, while a Green Party in government would also seek to raise all benefits by 20 per cent.
In a bold new policy launch, Greens co-leader Metiria Turei has also revealed she lied to her case workers when she was a solo mum, studying a law degree, while on the Domestic Purposes Benefit.
Speaking to a fervent core base of party faithful, Turei told the conference of her parents’ struggle to find work and her own battle as a mum on the DPB, lying to the state about how many people were living in her house.
Her experiences have shaped the party’s welfare policy, dubbed ‘‘mending the safety net’’, which will likely prove controversial and draw an ideological line in the sand over the presence of the welfare state.
The $1.4 billion policy would provide a suite of major changes that would effectively dismantle the Government’s welfare reforms introduced in 2012. These placed obligations for beneficiaries to prove they were looking for work, not taking drugs, and showing up for appointments and courses.
The Greens policy would lift nearly all penalties and duties for beneficiaries, raise the amount they’re receiving and keep the tap running for as long as they needed.
‘‘Our plan will lift people out of poverty, and guarantee a basic liveable income for anyone working or on a benefit,’’ Turei said.
‘‘We believe that poverty should never be used as a weapon, especially when children are involved.
‘‘Our plan to mend the safety net will ensure that all families in New Zealand can afford to put food on the table, keep a roof over their head and pay their power bill.’’
The Greens would change the Working For Families ‘‘in-work tax credit’’ to a Children’s Payment that would go to all families who are currently qualified for it.
The poorest families could get up to $72 a week extra as a result, on top of changes to tax thresholds and the minimum wage.
Those changes would include reducing the bottom tax rate from 10.5 per cent to 9 per cent for anyone earning less than $14,000, while anyone earning more than $150,000 per year will have their tax rate hiked from 33 per cent to 40 per cent – expected to generate about $605m in revenue.
In her speech, Turei talked about raising her daughter, Piu, while on the DPB in the early 90s.
‘‘What I have never told you before is the lie I had to tell to keep my financial life under control. Because despite all the help I was getting, I could not afford to live, study and keep my baby well without keeping a secret from [Work and Income NZ].’’
She and her daughter were forced to move around a lot; five different flats with various people.
‘‘In three of those flats I had extra flatmates, who paid rent, but I didn’t tell Winz. I didn’t dare.’’
Turei said she was announcing ‘‘the most fundamental changes to our welfare system in 30 years’’.
She expected the policy to lift 179,000 children out of poverty.
Former Social Development Minister Paula Bennett introduced the welfare reforms of 2012. Her story as a former beneficiary who lifted herself out of her situation is also widely known.
Turei’s announcement was met with rapturous applause from party faithful. However, critics have been quick to seize on her admission, saying she should be setting an example.
Finance Minister Steven Joyce said the policy was a ‘‘big backwards step’’. Her admission of lying to keep hold of more of the benefit was ‘‘disappointing’’.