KEY POINTS:
The Government has welcomed a Human Rights Review Tribunal decision that the Working for Families package does not breach the Bill of Rights or Human Rights Acts.
This year the Child Poverty Action Group (CPAG) sought a declaration from the tribunal that the "in-work tax credit" component of the package breached the laws because it discriminated on the basis of employment status.
The credit gives $60 a week to solo parents who work more than 20 hours a week, or couples who work more than 30 hours, are not on a benefit and have up to three children.
Those with more than three children get more. CPAG says 150,000 children of beneficiaries are being left in poverty because their parents are not eligible for the credit. But the tribunal ruled yesterday that the Government had the right to target assistance.
While the tax credits disadvantaged the children of beneficiaries, the tribunal found the practical benefit of the credits outweighed the discrimination.
Social Development Minister Paula Bennett welcomed the decision.
"This recognises that the Government must be able to target help and resources to achieve its goals - in this case, ensuring that people will be better off financially in work than on a benefit."
She acknowledged the group's concern for children in beneficiary households.
"Our Government shares that concern, but we must ensure that the welfare system incentivises people into work, not long-term dependency. Ultimately the best way we can help these children is for their parents to move from welfare into work."
Spokeswoman Janfrie Wakim said CPAG was seeking a meeting with the Government following the decision.
Making the tax credit available to all low-income families would be the best anti child-poverty spending the Government could do.
CPAG considered the justification arguments to be weak.
- NZPA
