KEY POINTS:
Labour says National's $42 million support package for laid off workers is too narrow and would give nothing to families excluded under the current rules.
National's policy, released today, is more tightly targeted than Labour's, but potentially gives more to those who receive it.
National Party leader John
Key announced the package in Hamilton, hot on the heels of Prime Minister Helen Clark's announcement yesterday to scrap means testing the dole for 13 weeks - opening the door to a benefit for couples where one is still in work.
Mr Key said National's plan would give a boost to those "truly in need" - individuals, single income families and solo parents already eligible for benefit assistance if they lost their job.
Under National's plan they would continue to receive the "In Work" component of Working for Families for an additional 16 weeks even after they lost their job.
National would also lift the ceiling of the accommodation supplement by $100 a week for up to 16 weeks to give greater support to those who had high rent or mortgage commitments.
Workers would have to have been in the same job for six months to be eligible - a far shorter requirement than the five years in the workforce stipulated under Labour's plan.
"This assistance will give redundant New Zealanders some space to sort out their financial affairs and get a new job or adjust their circumstances following a redundancy. It will give them a helping hand in a tough time."
Mr Key made no excuses for targeting the package in a way that excluded couples where one lost their job but one was still in work.
"You can rest assured if they get less under our package it's because their income is dropping less relative to their expenses."
Mr Key said the package would be relatively simple to administer as it was only going to those who would have already received support, meaning there was no need to alter eligibility criteria.
National had costed the plan at $42 million based on unemployment rising to 5 per cent, but Mr Key acknowledged it could cost more if unemployment rose further.
It would be in place for two years and would be reassessed after that.
Miss Clark said National's package was too narrow and offered nothing for couples - potentially with very large mortgages or rent payments - who would get nothing at the moment if one of them lost their job.
"Our package is focused at those two earner couples, who are often on two quite modest incomes, where if one is made redundant with all these commitments they get absolutely nothing."
She said National had overstated the benefits of its package as many of those eligible under its plan would most likely receive discretionary short-term payments on top of their benefit, to help them meet their costs, under the current system.
"I think it is a lot of smoke and mirrors."
Miss Clark yesterday said Labour's $50 million a year "job search allowance" would be a permanent feature of the benefit system if it was elected.
Green MP Sue Bradford today reiterated her call to scrap the standard one or two week stand-down period for the dole which both main parties have retaining in their plans.
She also called for a boost to benefit levels, greater discretion in regard to cash grants and giving the "In Work" component of Working for Families to all beneficiaries with children.
- NZPA