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KEY POINTS:
The Government has announced a "worst-case scenario" redundancy plan based on 70,000 people losing their jobs in the next two years.
But the $52 million plan gives nothing to people with savings in the bank, big payouts, or high-earning partners.
Prime Minister John Key announced details of the
support package for laid-off workers as officials' figures showed the numbers being made redundant was accelerating.
He said the 70,000 figure was a high-end calculation, rather than a forecast of what was expected.
But it was important to get the plan working quickly to give workers "breathing space" while they looked for another job or adjusted to living on a lower income.
For those who qualify, the scheme will give 16 weeks of extra payments, including the in-work tax credit part of Working for Families and up to $100 extra in the accommodation supplement.
It is aimed at people with families and high housing costs who were on moderate incomes.
It will also be available for self-employed people whose businesses are struggling.
But it gives little to those who have fall-back options such as savings, redundancy payouts of more than $25,000, or who can rely on the income of their partner.
The announcement came the day Auckland Chamber of Commerce revealed rising business gloom in the city.
More than half the businesses surveyed - 56 per cent - believed business conditions would remain the same or deteriorate, compared with 18 per cent who thought they would improve.
Twenty-two per cent of businesses expected their full-time staff to shrink over the next year, and 17 per cent thought part-time employee numbers would drop.
The Government's scheme will be backdated to November 8 - election day - but no payments will be made until January 1.
In November, Work and Income dealt with 1142 workers facing redundancy.
The agency's numbers showed the number of workers made redundant or dismissed was up from 7600 in the September quarter of last year to 9900 over the same period this year.
Labour has welcomed the help for those made redundant, but social development spokeswoman Annette King said it neglected working couples who suddenly had to adjust to living on one income.
Social Development Minister Paula Bennett said some cut-offs for eligibility were necessary.
She expected about 92 per cent of workers would be within the $25,000 redundancy payout cut off.
"We've designed the package to be as widely available and hassle-free as possible. It will not be paid to all those made redundant, but it will be for those who most need it."
Under the "Restart" package, the Government will give up to $100 extra a week to those who qualify for the maximum Accommodation Supplement and whose redundancy payouts are less than $25,000.
It precludes those who have other sources of income, including fulltime working partners or savings of $16,200 for couples and $8000 for single people.
The scheme will also give those who qualified for Working for Families before being made redundant the tax credits they would get if they were working - $60 for the first three children and $15 for each child above that.
The extra money is on top of other benefits - such as the unemployment or domestic purposes benefits - and will be given for up to 16 weeks or until the person finds another job.
Ms Bennett said it was difficult to predict the full extent of redundancies, but it was unlikely to affect unemployment figures as the job market was reasonably strong and many people made redundant would find new employment.
Who gets what:
$60 a week for families with up to three children, plus $15 for each further child. Applies to those who were eligible for Working for Families before becoming redundant and who would otherwise lose the in-work tax credit.
Up to $100 a week on top of the accommodation supplement. Available only to those who qualify for the maximum grant. Will not apply to couples with savings of $16,200, singles with $8000, or those with redundancy payments of more than $25,000. Calculated according to housing costs, area lived in and numbers of children.
Eligibility:
Available for workers and the self-employed such as contractors who have no work.
They must be actively job hunting for full-time employment (20 hours for single parents, 30 hours for couples).
They must have worked for the past six months to qualify, but not necessarily in same job.
Applies for 16 weeks, after which usual unemployment benefits apply.
Package will be in place for two years, and will then be reviewed.
Applicants must apply to Work and Income within 20 working days of being made redundant.
Those made redundant between November 8 and yesterday have until January 15 to apply.
If both people in a couple are made redundant, they can take the help consecutively.
Applicants can get the extra help for more than one stint if made redundant twice, but must have worked in the second job for at least six months.