Impact and Level of Take-up
Under current payment rates and abatement rates the New Zealand Government has stated that three out of four families would qualify for extra financial assistance under the Working for Families package.
In the tax year from 1 April 2005 to 31 March 2006 approximately 285,000 families received Working for Families Tax Credits. In August 2006 beneficiary families received an average of $110 per week of tax-credits, an increase of $30 per week compared to August 2004. Families paid by Inland Revenue received an average of $138 per week of tax-credits, an increase of $54 per week.
The Former Minister of Social Development and Employment David Benson-Pope stated that Working for Families had made beneficiaries better off by around $31.00 per week, and working families by around $64.00 per week, with the April 2007 increase lifting families' incomes further. Estimates suggest that Working for Families has reduced child poverty by 70% since its introduction. This would equate to at least 70,000 children lifted out of income poverty by Working for Families.
Former Minister David Benson-Pope also stated that Working for Families had made it easier for some women to start work, while in other families it had made it easier for one partner to spend more time at home.
A government evaluation (see below) has found that the number of Domestic Purposes Benefit recipients since the Working for Families package has fallen by 8,000.
Read more about this topic: Working For Families
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