Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Minimum pay rise only part of the picture for families

26 Feb 2014: News from CPAG

Minimum pay rise only part of the picture for struggling families

Child Poverty Action Group welcomes the rise in the minimum wage but says sensible and fair adjustments to family income assistance are also needed.

Spokesperson Associate Professor Susan St John says, "A minimum wage rise is a blunt instrument if the intent is to help struggling families with issues of child poverty. The government needs to review its current policy on Working for Families so that families on minimum wages get the full benefit of any increase."

St John says, "One of the insidious changes made in the 2011 budget was that the threshold of family income at which families start to lose entitlement to Working for Families' tax credits was first frozen, and then gradually reduced instead of being properly inflation-adjusted."

When Working for Families was introduced in 2005, the threshold was $35,000. If it had been properly adjusted for inflation, by 2014 it should be around $44,000.

Take, as an example, a family with one and a half workers with two children on the new minimum wage. Their total family income is approximately $44,000. Under current rules they are entitled to Working for Families tax credits of $185 per week. Had there been proper indexation of the threshold since 2005, the amount they would get for their children would be $217 a week.

The loss for this family is $1,664 a year of net income or around $2,000 of gross earnings. This represents 3.5 weeks work at the minimum wage for the main earner. St John says, "Instead of relying solely on increasing the minimum wage to help low income working families, Government needs to take a long hard look at its policies on Working for Families. We are way out of line with Australia where the threshold for their family tax credits is adjusted every year and is now A$48,837. By 2018, ours will be reduced to $35,000 while theirs will be over $50,000."

"We need both a realistic increase in the minimum wage to begin to share the fruits of recovery more fairly, and properly indexed weekly Working for Families support to help sustain the living standards of those on low wages with children. These are not alternatives, they must work hand in hand."

-ENDS-

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

#SaveCampbellLive : Mediaworks Delivered 104,000 Petition Signatures At TV3's Newton HQ
#PonyTailGate #TailGate Full Coverage

Pukeahu Park : ANZAC 100th Anniversary Dawn Service In Pictures

Roughly 18,000 people gathered this morning at Pukeahu Memorial Park for the Anzac day centenary. Anticipating the large turnout, patrons arrived as early as 4.30. It was virtually impossible to get near the Memorial after 5am. By 6, the crowds on Taranaki Street had stretched as far back as the Z Petrol station.

The screens erected around the park displayed the live events to those who had turned up. The heat generated by the huge number of people caused many to take a turn. Medics and ambulances were on hand for the fainting crowd members. Only twenty minutes into the ceremony, one medic said they had already dealt with 15 to 20 spells. More>>

 

PARLIAMENT TODAY:

War: What’s To Commemorate?

Gordon Campbell in Werewolf: Is there anything that can be validly commemorated on this 100th anniversary of Gallipoli? Beyond, that is, a fleeting sense of empathy with the thousands of soldiers killed or wounded on April 25 1915 and in the months thereafter, until the whole thing was finally called off in December 1915. More>>

MORE IN WEREWOLF:

ALSO:

Peter Ellis Case: Minister Declines Request For Commission Of Inquiry

Justice Minister Amy Adams has declined a request from supporters of Peter Ellis for a Commission of Inquiry on the basis that an inquiry cannot be used to determine the liability of any person. More>>

Quakes: New Process For Red Zone Crown Offers

Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

ALSO:

Gordon Campbell: On The Battle Obama Is Waging Over The TPP

For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

ALSO:

Greens: Govt Breaks Free Doctors Visit Promise To Kids

Documents obtained by the Green Party show that the Government decided to fund only 90 percent of doctors’ visits for children suffering from an injury in an attempt trim the cost of the so-called “free” visits. More>>

ALSO:

Other Wars: Extension Of NZDF Commitment In Afghanistan

The New Zealand Defence Force’s commitment of mentors and support staff to the Afghan National Army Officer Academy in Afghanistan has been extended out to December 2016, Defence Minister Gerry Brownlee says. More>>

PM's Press Conference: Auckland Property Prices Increasing "Too Rapidly"

John Key accepted that Auckland property prices 'are going up too rapidly” in a press conference held today in Wellington, however he said that this is not anything new. More>>

ALSO:

Press Conference: ANZAC PMs Concerned About ISIL Bringing The War Home

Prime Minister Key and Prime Minister Abbott spoke of the bond formed between Australia and New Zealand in the “baptism of fire” of Gallipoli. Abbott stated that New Zealand and Australia’s values and interests are linked, and this is reflected in the joint operation in Iraq which will begin shortly. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news