21 Jul 2009

Labour clarifies policy on unemployment benefit

5:08 pm on 21 July 2009

The Labour Party now says there will be limits in its policy on who should receive a benefit if made redundant during the recession.

At present, people who lose their job cannot claim the unemployment benefit if their partner earns more than $534 gross a week.

On Monday, the main opposition party said anyone who lost their job due to the economic downturn should have access to a benefit, no matter what their spouse or partner earned.

Labour moved to clarify that on Tuesday, saying it expects there will be a cap in place to stop someone whose partner is on a very high income from receiving the dole.

The party says it is still developing the policy. However, the National-led Government says Labour leader Phil Goff has back-tracked on what he said on Monday.

Labour has not said how long such an entitlement should remain in place, or how much the party's policy would cost.

The Business Roundtable on Monday called for the unemployment benefit to be treated as a loan rather than a grant, as a way of tackling New Zealand's benefit culture.

But Mr Prime Minister John Key said extending the unemployment benefit would cost between $200 million and $300 million a year or up to $1 billion over three years - and that is too high for the taxpayer.

Mr Key says taxpayers would not want to pay a benefit to someone whose partner or spouse is on a high income.