ACT proposes employment insurance

Stuff reports:

“Covid-19 has revealed a serious and growing issue. New Zealanders who have paid high taxes for years are being laid-off and made redundant but finding they get little back in benefits. New Zealanders in genuine, short-term need also face the stigma associated with welfare created by long-term beneficiaries who have made it a lifestyle choice.”

ACT proposed income tax rates should remain unchanged but 0.55 per cent of the tax paid would be allocated to a ring-fenced employment insurance fund.

On the loss of employment, a taxpayer could claim 55 per cent of their average weekly earnings over the previous 52 (or fewer) weeks. The maximum yearly payable amount would be $60,000.

Insurance could only be claimed for one week for each five weeks the person has worked, up to a maximum of 26 weeks per claim. Someone who has worked continuously for only one year could claim up to 10 weeks’ employment insurance.

Once a recipient has used up their employment insurance entitlement, they can move to Jobseeker Support and Electronic Income Management would apply.

I like this. It doesn’t give more money to people who spend most of their life on the dole, but is generous to those who have been in gainful employment and through no fault of their own, lose their job.