February 03, 2022
Poverty group blasts higher benefit
Child Poverty Action Group is blasting a proposed social unemployment insurance scheme as bad for Māori and likely to take in existing inequities.
The scheme cooked up by the government, Business New Zealand, and the Council of Trade Unions would give workers up to 80 per cent of their usual salary for up to seven months if they are made redundant, laid off, or who have to stop working because of a health condition or disability.
It would be funded levies on wages and salaries, with both workers and employers paying an estimated 1.39 per cent each.
CPAG social security spokesperson Mike O’Brien says the winners will be those in regular, full-time, well-paid work, without dependent children.
People in precarious, part-time, irregular and low-paid work – disproportionately Māori, Pacific and/or women, particularly caregivers – will either qualify for a low rate of payment under a social insurance scheme or will not be eligible at all.
Associate Professor O’Brien says such a two-tier welfare system would likely exacerbate poor mental wellbeing among welfare benefit recipients and strengthen stigma for benefit recipients.