Benefits to rise after Child Hardship Bill passes

Social Development Minister Anne Tolley says the legislation enabling the first rise in benefit rates in 43 years has passed its final reading in Parliament.

The Support for Children in Hardship Bill, announced as part of Budget 2015 will increase work obligations for Sole Parents, increase benefit and student allowance rates for those with children, increase Working for Families tax credits for low income families and increase Childcare Assistance.

“We made a promise to help children in the most severe levels of material hardship and this bill delivers on that promise, while continuing to support benefit dependent parents into work,” Mrs Tolley says.

“The increases to benefit rates and Working for Families tax credits will benefit more than half a million New Zealand children, including 190,000 children in benefit dependent homes.

“We know that nine out of ten beneficiary families are sole parent families, and on average they spend 14.5 years on welfare. The changes to work obligations and Childcare Assistance will help to support them to find and stay in work so they and their children can thrive.

“We’ve already seen an almost 22 per cent drop in the number of people receiving Sole Parent Support in the last three years and this package will complement the existing welfare reforms which are helping more people live independent lives,” Mrs Tolley says.

The changes will come into effect from 1 April 2016.