Fix Working For Families (2022)

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Fix Working For Families (2022)

Join us at Child Poverty Action Group in helping to reshape the future of how the poorest families in New Zealand are supported.

It is time to turn around the policy that discriminates against families in need.

“Not only did I lose my job, I also lost the ability to claim the IWTC. This was a terrible financial blow. As a result, I am now further in debt and face food insecurity and hunger most of the time.”
— Amy

What is Working for Families?

Working for Families tax credit package is a vital source of income support for children in low-income families. Working for Families is a scheme of tax credits that is paid to eligible families with dependent children aged 18 or younger. It is intended to help with the family's day-to-day living costs. 

“When I think back on how much $72.50 would have improved our lives ... it makes me sick to my stomach”
— Serena

Read more of Serena's story here

What needs fixing?

Working For Families payments are not properly indexed and children in benefit-receiving households are not eligible to receive all payments. This discrimination is deeply flawed and unfair and prevents the package from realising its full potential as a programme to address poverty. 

Working for Families discriminates parents who receive benefits and cannot work. These families are currently denied one crucial payment for their children. This is currently assessed at $72.50 per week (or more for larger families). Going without this payment drives these families further into poverty and debt.

“Working for Families doesn’t take into account the changing dynamics of the modern family.”
— Ashleigh

Read more of Ashleigh's story here

What does Child Poverty Action Group want to change?

When the campaign began in 2016, we made several key policy recommendations: 

  1. Abolish all fixed hours of paid work requirements for the payment of any Working For Family tax credits.  

  2. Abolish the In-Work Tax Credit and add $72.50 to the first child Family Tax Credit. 

  3. Properly index Working For Families payments 

  4. Restore Working For Families payments to its former real value.  

“Yes I work, I work hard”
— Natalie

Read more of Natalie's story here

Where can I read Child Poverty Action Group’s Submission?

You can read CPAG’s submission here.

Ngā Tāngata Microfinance has also made a submission, which you can read here.

“IRD did not seem to understand their own requirements”
— Marion

Read more of Marion's story here

We need your help - Get involved

In May 2022 the Child Poverty Action Group spearheaded a campaign to support the review of the Working for Families. We need your help to make change happen.

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  • Join CPAG to help make a better future

“I don’t know how families on benefits and low wages are expected to manage.”
— Shane
“In Australia … we survive the start of the school year because of Government help.”
— Amelia

Campaign Items

Wage Increases Outpace Income Support for Children
Families in low-paid work with three children would have received up to $1900 more over the last two years if income support for children ...

NZ Is Being Shown up by Australia’s Family Tax Credit System - CPAG
CPAG finds that Australia’s family tax benefits system is significantly more generous than New Zealand’s Working for Families tax credits.

Budget Delivers Disappointment for Children in Poverty but CPAG Has Hope This Can Be Fixed
CPAG executive officer Georgie Craw says: "We hope the Government will take up the opportunity it has afforded itself to enable our nation to be the ...

The Latest Child Poverty Statistics Are a Wake-up Call
This morning Stats NZ released child poverty statistics for the year ended June 2019. The results show that any changes in child poverty are small ...

Monitoring Report Suggests Progress, but Worst-off Children Need Next Steps Urgently
CPAG says that putting the building blocks in place to clean up an inherited mess is a very important part of the process to achieve the targets set ...

State of the Nation Report Shows Little Improvement for Children
CPAG believes a meaningful reduction in child poverty rates is not attainable unless the harmful inadequacy of benefit levels is addressed.

Benefit Data Shows Families Cannot Wait Till Budget 2019 Announcements

CPAG calls on the coalition Government to increase welfare benefits by at least 20% immediately and index to wages like New Zealand Superannuation.

Slowdown Possibility Raises Concerns for Family Incomes
More than ever families will need financial support if job losses occur, or work hours are reduced along with spending power.

What Happens for Children When the Winter Energy Payment Runs Out?
This year we are calling on policy-makers and politicians reform the welfare system so that it is fit for families in the 21st century.

CPAG Welcomes Working for Families Increases on July 1
Working families on low incomes have been particularly hard hit by past cuts to the income threshold from which families’ payments start to reduce.

New CPAG Paper - Will Children Get the Help They Need?  
While it has been indicated that the 1 July changes are just the start, families are desperate now, and cannot wait.

Families Package Is Tip of the Iceberg for Families in Poverty
“Many working families on low wages are facing increased financial pressure as they struggle to meet housing costs, and food insecurity is a growing ...

Child Poverty Targets Realistic, but Income Needs Urgent
By the time the Families Package comes in, families’ costs, such as rent, may have increased yet further.

Muddled Numbers Provide an Opportunity for Government to Lead Visionary Change
More money needs to be channelled to the families currently falling below the very low 40% poverty line. There is a way to do this without creating ...

Children’s Income Needs Should Be Addressed Urgently
Christmas is fast approaching, and charities are gearing up to support families in need, with the expectation that the numbers of people requiring ...

Abatement Rates Must Be Restored for Working Families to Thrive
CPAG urges the new government to make a firm commitment to the low-income working families, by ensuring that their ability to earn extra is not ...

NZ First’s Anti-Discrimination Policy Could Be Promising
With a new government undecided, Child Poverty Action Group (CPAG) urges participants in coalition talks to prioritise child wellbeing policies.

Bold Plans Needed to Tackle Child Poverty, Not Vague Promises
“Right now, 14% of children in New Zealand are living in material hardship. Reducing that percentage figure by 10 points - to 4% - would mean 110,000 ...

Parental Income Test Needs Urgent Attention
“It is worrying that so many are in hardship and that is impacting negatively on their education.”

Make Eliminating Child Poverty New Zealand’s No.1 Priority
CPAG urges all major political parties to agree to reform Working for Families as matter of top priority.

Bold Changes and Combined Efforts Could Work for Families
By raising core benefits and the earned income threshold at which benefits begin to abate, there is a better chance for all families on benefits to ...

A Good Start to WFF Changes, What Will Greens Have in Store?
While both National and Labour policies will reduce child poverty a little, this is not the big boost that is needed.

CPAG Welcomes Attention to Working for Families at Last
"For ten years we have argued that WFF is a flawed programme in its design and we have been especially alarmed at the silent erosion under National’s ...

Policy Priorities for Supporting Family Incomes
The upcoming election provides an opportunity for all political parties to put the wellbeing of all New Zealand’s children at the centre of their ...

CPAG Stands Behind Figures Showing $2.8 Billion Cuts to Working for Families

These cuts have affected families in low-paid, full-time work and are quite contrary to Bill English’s claim to want to look after "hard-working" New ...

Hospitalisations Linked to Poverty Must Be Reduced
There are more than 40,000 hospital admissions of children in New Zealand every year with illnesses that often have their roots in poverty and ...

Latest Income and Welfare Changes Fall Short of Addressing Need

“It is no wonder we are seeing more low-income working parents depend on food banks and other charities for survival.”

Thriving Families Reinforces CPAG Campaign

Technical Efficiency Not Enough for Children
Currently, WFF is far too complex and has been undermined through both failure of policy to index it properly, and by deliberate cuts that reduce its ...

Does the Tail Wag the Dog?
The major Working for Families review undertaken by IRD, Treasury and MSD is taking place behind closed doors. There are no published terms of ...
Susan St John
Working for Families, Welfare

International Women’s Day? How Are the Worst Off Mothers and Their Kids Doing?
Meaningful reform to WFF is well over-due. There is much unconscious bias and implicit racism in the current WFF.
Susan St John
Welfare

Home Truths About the Tricky In-Work Tax Credit
If the income from work is not in itself an incentive, and needs to be topped up by the government to make it worth the effort, then that raises ...
Renee Manella
Working for Families

Working for Families Is Not a Trap, It’s a Run-Down House in Need of TLC

People should be wary of recent criticism of Working for Families (WFF) tax credits as being a poverty trap. The problem is not the system itself, ...
Jeni Cartwright
Welfare

Supporting “Hard-Working Families”?
Why do we need tax credits? Tax credits keep the whole shebang of family income afloat. Wages are now so far behind the basic costs of living that, ...
Emily Keddell
Working for Families