Green Party co-leaders Marama Davidson (left) and Chloe Swarbrick. Photo: RNZ / Marika Khabazi
The Green Party is proposing an "income guarantee" that would give everyone who is out of work at least $395 a week, and to completely overhaul the Working for Families scheme.
It is one of the announcements in its alternative Budget revealed on Wednesday morning.
The Party said it would also introduce a family top-up of $220 a week for a family's first child, as well as $135 a week for every other child, replacing Working for Families.
It would double the Best Start payment to $146 and offer it to all children under three.
The income guarantee would start as a higher Jobseeker Support and Sole Parent Support rate, and would then be phased in to replace main benefits, with rates increased by inflation.
Recipients would be able to earn up to $200 a week before their payments reduced.
It would also transform ACC so that it covered anyone with a health condition or disability. At present, it only offers payments to people who are off work due to injury.
"Aotearoa has enough to ensure everyone has what they need to live a decent life. Our Income Guarantee forms a key part of our plan to end poverty," Green Party co-leader Marama Davidson said.
"People can be out of work for many valid reasons, but the current welfare system often doesn't give them or their families enough to live on with dignity. Just raising benefit payments isn't enough to fix that.
"Also, the Working for Families program doesn't help some of the poorest families because they don't qualify for certain tax credits, which keeps them stuck in poverty. The In-Work Tax Credit leaves out families who are out of paid work or self-employed, meaning they often miss out on support they need.
"We want to replace Working for Families with our Family Top-Up, which gives more money to the families who need it most and doesn't unfairly leave out those without paid jobs. Families could still get other types of support, like temporary assistance, hardship grants, and the accommodation supplement, alongside the Income Guarantee."
She said the way benefits were reduced when someone started earning more money made it harder for people to move into paid work.
"In some cases, people end up spending more on things like childcare and transport than they actually earn after their benefit is cut.
"That's why our Income Guarantee plan lets people earn up to $200 a week before their benefit starts to reduce, and it reduces the benefit more slowly - at 65 cents for every dollar earned over that amount. It also offers a higher weekly payment of $395. In comparison, Jobseeker Support only allows $160 before the benefit starts reducing, and it reduces faster - at 70 cents per dollar earned. So, under the Income Guarantee, people can earn more before their support payments go down."
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