Extra households to get childcare help, Working for Households tax credit boosted in price of residing package deal
The latest policy in the Government’s package of cost of living measures reverses a freeze on the income threshold for childcare eligibility that National put in place in 2010, the Prime Minister said. By “playing catch-up” and indexing the income threshold to wage growth, over 10,000 additional children are estimated to receive support.
“We’re targeting one of the most significant costs for working families by making childcare and before and after school care more affordable to a greater number of low and middle-income families,” Ardern said.
“At a time when families are feeling the cost-of-living spike, we’re investing in what matters most by making sure childcare is within reach for parents and they have more support to cover other costs.”
Ardern said this policy means a family with two parents both working 40 hours per week on $26 per hour with two children under five who will not have been eligible for childcare assistance, now will be eligible for $252 per week from April 1, 2023.
“Research shows nearly 23 percent of mothers report difficulties getting childcare while working or wanting to work. This policy helps remove that barrier and enables parents to enter the workforce to help fill labor shortages, so it’s a win-win for families and the economy, ” the Prime Minister said.
“It’s also about restoring opportunities for children to get the best start in life. Evidence shows that participation in high quality childcare can reduce the impact of socio-economic disadvantage.”
Ardern said the inflation adjustment of the family tax credit will also provide a little extra relief for the majority of working families.
“Along with previous increases to the family tax credit, a family with two children on a median family income for Working for Families recipients are now receiving over $1300 more a year since we took office. That climbs to over $3600 for families receiving the Best Start payment,” she added.
“Supporting New Zealand families with the cost of living is the top priority for the Government. This kind of targeted support not only reaches those who need it most but it won’t have a significant impact on inflation and make the problem worse.”