26 May 2020

Green Party says Labour broke promise to overhaul welfare system

5:39 am on 26 May 2020

The Greens have accused Labour of breaking a core promise to overhaul the welfare system, a commitment made in 2017 during negotiations to form a government.

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Green Party co-leader Marama Davidson Photo: RNZ /Dom Thomas

The gripe comes after a chorus of frustration from those on the left who say the government has entrenched a cruel and dehumanising two-tier welfare system in its latest response to the Covid-19 crisis.

Finance Minister Grant Robertson yesterday unveiled a special 12-week relief payment for people who have lost their jobs due to the economic impact of Covid-19. Full-time workers can apply for $490 a week - roughly double the regular Jobseeker Support.

Green Party co-leader Marama Davidson told RNZ the new offering was a "very clear" admission that base benefit rates were not enough to live on.

"Everybody should be able to access the support, regardless of whether they are recently unemployed or longer-term unemployed."

Davidson said she had heard the frustration of beneficiaries who felt they had been deemed the "undeserving poor" by the latest move.

The Greens had pushed for all benefits to be increased to the new Covid-19 level, she said, but had so far been unsuccessful in getting that over the line.

"We've been consistently clear that this needs to happen urgently and desperately. It hasn't happened yet, but we won't give up," Davidson said.

"Both New Zealand First and Labour need to come to the table on this."

In October 2017, the Green Party co-leader James Shaw signed an agreement with Labour leader Jacinda Ardern, agreeing to support the government on matters of confidence and supply.

In return, Labour made a number of commitments including one to "overhaul the welfare system".

Davidson said the Greens were "not satisfied" that the promise had been fulfilled.

"We know that work has started, but there's still a long way to go."

Asked whether Labour had adequately delivered on its commitment, Prime Minister Jacinda Ardern said the government had made "significant changes".

She cited the $5.5 billion Families Package in 2018 which established the Winter Energy and Best Start payments, as well as boosting Working for Families tax credits.

The government also began indexing main benefits to wage growth from April 2020, meaning benefit payments rise in line with wages - rather than inflation.

In its initial Covid-19 economic rescue package, Finance Minister Grant Robertson increased most benefits by $25 a week and doubled this year's Winter Energy Payment.

However, the vast majority of the 120 recommendations by the Welfare Expert Advisory Group have not been acted on.

Social Development Minister Carmel Sepuloni yesterday told media the government could not implement all the recommendations immediately.

"This is an ongoing work programme," she said. "I've never shied away from the fact that there is more work for us to do."

Davidson said the Green Party would not be taking any retaliatory action in response to the broken promise but would continue to speak out publicly.

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