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

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home.

To the US, drones are a legitimate response to the threat posed by the al Qaeda organisation and its franchisees... To the US, the drones carry the added advantage of not putting US troops at risk on the ground, and minimises the need for putting them in large numbers in bases in the countries concerned, always a politically sensitive point.

The counter-argument, well articulated by security analyst Paul Buchanan on RNZ this morning, is that this particular drone attack can be said to amount to an extra-judicial execution of a New Zealand citizen by one of our military allies, in circumstances where the person concerned posed no threat to New Zealand’s domestic security. More>>

 

Parliament Today:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Select Committees: Tobacco Plain Packaging Hearings

The Stroke Foundation is today backing the Cancer Society and Smokefree Coalition who are making oral submissions to the Health Select Committee in support of proposed legislation to remove of all branding from tobacco products. More>>

ALSO:

Milk: Oravida Asked For Cabinet Help

New evidence released by New Zealand First today reveals Justice Minister Judith Collins used her position to manipulate the Government to help her husband’s company, Oravida, after the Fonterra botulism scare, says New Zealand First Leader Rt Hon Winston Peters. More>>

ALSO:

With Conditions: Ruataniwha Consents Approved In Draft Decision

The Tukituki Catchment Proposal Board of Inquiry has granted 17 resource consents relating to the $265 million Ruataniwha Water Storage Scheme in a draft decision that would open more of the Hawke’s Bay to irrigation. More>>

ALSO:

Fast Lanes, Campervans: Labour 'Making The Holidays Easier For Kiwi Drivers'

The next Labour Government will make the holidays easier and journeys quicker for Kiwi families driving on the roads, says Labour Leader David Cunliffe. More>>

ALSO:

Gordon Campbell: On Royalty And Its Tourism Spin-Offs

Ultimately the Queen’s longevity has been one of her most significant accomplishments. A transition to Prince Charles while the monarchy was in the pits of public esteem in the mid to late 1990s would have been disastrous for the Royal Firm. Far more congenial representatives have now emerged... More>>

ALSO:

Privacy (Again): ACC Demands Excessive Privacy Waivers

Labour: “This is just another example of ACC under National deliberately acting to deny treatment and compensation... Those who did fill in the form have effectively been victims of yet another ACC privacy breach. This time Judith Collins knew it was happening..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news