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Thousands of families in Wairarapa will be entitled to extra assistance when the next phase of Working for Families kicks in on Friday.
Wairarapa MP Georgina Beyer says 1313 people registered with Work and Income in Wairarapa* have already benefited from the Working for Families package introduced in October last year.
"From this coming Friday, around half of all families with children can get extra money for living costs, housing and childcare," said Ms Beyer.
"The 1 April changes mean all Wairarapa families with children can be more sure of a decent standard of living through targeting assistance to families that need it the most."
Ms Beyer said the 1 April changes will improve the lives of ordinary New Zealand families with children, with an average increase of $100 a week in support for families with children in the $25-45,000 income band by 2007.
From 1 April, Family Support will increase by $25 a week for the first child and $15 a week for each other child. The maximum Accommodation Supplement payment rates will increase for areas with higher housing costs, and Foster Care Allowance, Unsupported Childs Benefit and Orphans Benefit will all increase by $15 per child.
"Working for Families provides targeted increases to the weekly incomes of families with children that could never be achieved through tax cuts," said Ms Beyer.
"Working for Families builds on the work this government has done since 1999 to improve the lives of New Zealand families, including paid parental leave, lifting the minimum wage and income related rents."
* people who've registered interest with service centres located in Masterton and Tararua, therefore covering Wairarapa.
How Working for Families will benefit Kiwi families
The following scenarios show how Working for Families will benefit low to middle income families with children.
The amount of extra money available to families will depend on their income level, the number of children they have and associated costs such as childcare and accommodation.
The amounts include increases gained from the 1 October 2004 changes.
Family 1:
Couple with two children, living in Oxford, near Christchurch. Work 60 hours a week between them, earning $37,440 a year before tax. Pay $120 a week in rent and $69 in childcare costs.
Better off by:
1 April 2005 $82 a week
1 April 2006 $143 a week
1 April 2007 $163 a week
Family 2:
Three children aged 5, 9 and 12 years living in Onehunga, Auckland. Income $52,000 before tax. Mortgage of $385 a week.
Better off by:
1 April 2005 $99 a week
1 April 2006 $139 a week
1 April 2007 $169 a week
Family 3:
Sole parent with four-year-old child living in Lynfield, Auckland. Receives Domestic Purposes Benefit and works 30 hours a week for $11 an hour before tax. Pays $225 a week in rent and $115.50 in childcare costs.
Better off by:
1 April 2005 $91 a week
1 April 2006 $130 a week
1 April 2007 $147 a week
Further information is available at www.workingforfamilies.govt.nz
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