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

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system.

The new model involves a new government-owned company taking over the operation of the payroll service, and Talent2 licensing the core Alesco software to that company.

The settlement provides for Talent2 to pay the Ministry between $18 million and $22 million, made up of $7 million in cash and other considerations including a license for the Alesco software and discounted fees for the support and maintenance of this software. More>>

 

Parliament Today:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news