Working for Families uptake figures released: 200,000 families benefiting from 1 April changes

Around 200,000 families are already receiving extra help as a result of the 1 April Working for Families increases in family income assistance, Social Development and Employment Minister Steve Maharey said.

Initial uptake figures released today show 196,230 families with an estimated 385,000 children received family income assistance from either Inland Revenue or the Ministry of Social Development in April.

The figure is set to exceed 260,000 by April next year, before the In-Work payment takes effect, and reach 300,000 by the time the roll-out is complete in 2007.

"These results are clear evidence that the Working for Families package is already making a difference for New Zealand families," Steve Maharey said. "Working for Families is providing real increases to the weekly incomes of families with children. The average Inland Revenue family assistance payment was $113 per week – a 33 percent or $28 increase on April last year."

Since family support rates increased on 1 April, the uptake of Working for Families assistance has been tracking slightly above initial forecasts across all of the elements of the programme, including Family Assistance, Accommodation Supplement, and Childcare Assistance.

Other highlights from April 2005 include: $36.6 million of family income assistance paid by Inland Revenue in April 2005 compared to $22.7 million in April 2004, an increase of 61 percent 13,950 more working families received a family assistance payment from Inland Revenue in April 2005 than in April 2004, a 21 percent increase – this shows that more people are opting for payments weekly or fortnightly, rather than waiting until the end of the tax year to receive them as a lump sum. 3,581 more people received Accommodation Supplement than in April last year On average during the month, parents received childcare assistance for 30,818 children, 8,412 more than in April last year $8.2 million in Childcare Assistance paid by the Ministry of Social Development in April 2005, an increase of 57 percent on the $5.2 million in April 2004

Steve Maharey said the National Party's commitment to tax cuts would clearly be at the expense of the families who are gaining from Working for Families. "Not only could National not afford to continue with Working for Families and deliver a tax cut, they would need to borrow heavily or cut core government services to pay for their promises.

"Tax cuts which delivered the same increase as Working for Families is currently providing would cost $4-5 billion a year – around half the total amount spent on health each year. This is without the further increases under Working for Families in October this year, April next year and April 2007." Contact: Daniel Lambert, Press Secretary, (04) 471 9154 or (021) 270 9115, email: Daniel.Lambert@parliament.govt.nz, www.beehive.govt.nz/maharey

How Working for Families benefits New Zealand families The following scenarios show how Working for Families benefits low to middle income families with children.

The amount of extra money available to families will depend on their income level, the number of children they have and associated costs such as childcare and accommodation.

The amounts include increases gained from the 1 October 2004 and 1 April 2005 changes.

Family 1: Couple with two children, living in Oxford, near Christchurch. Work 60 hours a week between them, earning $37,440 a year before tax. Pay $120 a week in rent and $69 in childcare costs. Better off by: 1 April 2005 $82 a week 1 April 2006 $143 a week 1 April 2007 $163 a week

Family 2: Three children aged 5, 9 and 12 years living in Onehunga, Auckland. Income $52,000 before tax. Mortgage of $385 a week. Better off by: 1 April 2005 $99 a week 1 April 2006 $139 a week 1 April 2007 $169 a week

Family 3: Sole parent with four-year-old child living in Lynfield, Auckland. Receives Domestic Purposes Benefit and works 30 hours a week for $11 an hour before tax. Pays $225 a week in rent and $115.50 in childcare costs. Better off by: 1 April 2005 $91 a week 1 April 2006 $130 a week 1 April 2007 $147 a week

Further information is available at http://www.workingforfamilies.govt.nz

© Scoop Media