KEY POINTS:
The Government needs to lift core benefit levels rather than bring in minor top ups for some beneficiaries, the Green Party says.
Finance Minister Michael Cullen yesterday indicated some beneficiaries - who will receive little from tax cuts - - may get extra help in the form of higher caps on special grants.
Prime Minister Helen Clark today said the changes would be aimed at long-term beneficiaries, such as invalid's benefit, who did not work part time and were childless - meaning they missed out on tax cuts and Working For Families adjustments.
The changes would not involve "megabucks", she said.
But Green Party welfare spokeswoman Sue Bradford said price rises meant beneficiaries were worse off now than after the 1991 benefit cuts and a rise in core benefit payments was needed rather than a top up to special assistance grants.
"They are a drop in the bucket compared to the desperate circumstances faced by many people whose benefits are simply nowhere near enough to live on, especially at this time of rising food, fuel, transport and housing costs."
She also repeated the Greens call for the "In Work" component of the Working For Families package to be available to all families rather than just those in work.
The "In Work" component of the package is worth up to $60 a week for couples with up to three children, who work over 30 hours a week. Single parents need to only work 20 hours to be eligible.
Dr Cullen yesterday indicated the Government was considering increasing the maximum size of grants and he and Social Development Minister Ruth Dyson would take recommendations to Cabinet in weeks rather than months.
However he said beneficiaries with children and those who also worked part time would already benefit from inflation-adjustments to Working For Families and tax cuts in the bottom tax bracket.
- NZPA
