Hon Bill English
Minister of Finance

31 March 2016
Media Statement

April 1 changes to help New Zealand families

More paid parental leave, stronger work expectations for beneficiary parents and the first non-inflation increase to benefits in 43 years are part of a raft of measures coming into force tomorrow to help families get ahead, Finance Minister Bill English says.

Working for Families, the minimum wage and New Zealand Superannuation will also increase on 1 April, and ACC levies will be further reduced.

“These changes show that all New Zealanders continue to benefit from the strong, growing economy and the National-led Government’s responsible policy programme,” Mr English says.

The measures coming into force include:
Benefit rates for 100,000 families will rise by $25 a week after tax.
Working for Families will increase for low income working families by up to $12.50 a week, and $24.50 for very low income working families.
Paid parental leave will increase by a further two weeks to 18 weeks, and will be extended to more workers and primary caregivers.
Childcare assistance for 40,000 low-income families will increase, reducing barriers to moving off welfare and into work.
ACC levies will fall by $232 million, with a further $218 million reduction on 1 July. In total, annual levies have been cut by $2 billion since 2008.
New Zealand Superannuation will increase by 2.7 per cent. It is up 34 per cent since 2008, compared to inflation of 11.2 per cent.
· The adult minimum wage will rise from $14.75 an hour to $15.25 an hour, a 3.4 per cent increase.

“Many of these changes are part of the Budget 2015 package to reduce hardship among children in New Zealand’s poorest families. The best thing we can do for these children is to get their parents into work.

“So from 1 April we are strengthening work requirements for parents on a benefit – requiring them to be available for work when their youngest child turns three, rather than five now. They will also be expected to find work for 20 hours a week rather than 15.

“The Government’s economic programme is supporting more jobs and higher incomes for New Zealand families. The average annual wage increased by 3.1 per cent in the last year to almost $58,000 and 175,000 jobs have been created in the last three years.

“The 1 April measures demonstrate the Government’s focus on ensuring everyone shares in the gains from a growing economy.”

ends

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