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Working for Families cuts make life harder for families

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Tens of thousands of families will get less money through the scheme

Tens of thousands of families will get less money through the scheme

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Thu, 19 May 2011 6:06p.m.

By Patrick Gower

In Richard London's house they bring in $85,000 a year. With three children, that means $85 dollars a week from Working for Families.

They'll lose about $2.55 a week under today's changes, life's hard enough as it is.

“It's difficult so any cuts to Working for Families, it affects us quite immensely,” he says.

The tax credit costs $2.8 billion dollars a year, today's cuts aim to get that back to $2.6 billion, a saving of $200 million. So not major cuts - Bill English calls it "Trimming".

“We needed to trim it enough that we could get back to surplus,” he says.

That trimming has just missed Sonya Booth's house where they live on about $60,000 a year.

That means $120 dollars a week from Working for Families.

It will get bumped up but only by 27 cents a week.

“We just have to live with what we have got really and be thankful it didn't get any worse,” she says.

The Doocey Household in Christchurch earn $90,000 dollars a year. They've got five young girls and get a $200 dollar tax credit.

That many children means they'll actually get $2.60 more when the changes kick in from April next year.

So what difference will that make?

“Not very much, maybe a bottle of milk if we're lucky. Not much at all,” they say.

But tens of thousands of families will get less money through the scheme - and 7000 families will lose the tax credit altogether. Bill English says they won't even notice.

“We'll be counting families that don't even know they are eligible,” he says.

The cost of living is top of the agenda for many families. So National has shied away from making savage cuts to this popular but expensive policy. And that's because it's election year.

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Comments [3]

eve
20 May 2011 10:26p.m.

If the money that is spent on treaty claims was put back into the system we would be better off.

papa bear
20 May 2011 2:00p.m.

key is a one man wrecking machine,he has attacked the workers rights,their paypackets with rising gst and cost of living getting out of control. put the country into deep debt and cut so many jobs and services. it seems to me that key wants to make this country a poor-rich split society.
very sad ,as under labour we were all happy and proud of our lifestyle, now we see the slump in the street with people looking poor. it's sad . nov can stop the rot.

heather
19 May 2011 8:54p.m.

we will grow the economy by putting evreyone out of work , taking even more out of spenders pockets , attack students all the time throw bill;ions of your money for free at insurance companys with no talk of getting it back .you must be mental nz plain mental , what the media hate is they cant fool all the people all the time . ole in nationals popularity , withch in truth is much lower than they say .we see that in by elections .take some self responsibility national stop blaming evreyone else and fix your mess .not one idea for growth not one in this budget . ARE YOU NIGHT TIRED OF GIVING THE ELITE RICH A FREE RIDE FROM YOUR POCKETS NZ .

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