Worker insurance scheme still off the table, finance minister confirms

Worker insurance scheme still off the table, finance minister confirms | Insurance Business New Zealand

Insurance News

Worker insurance scheme still off the table, finance minister confirms

Robertson lifts the lid on why it will remain on hold

Insurance News

By
Kenneth Araullo

New Zealand finance minister Grant Robertson has reaffirmed that a worker insurance scheme is currently not on the agenda due to unfavourable economic conditions.

This program, designed to provide support to individuals facing redundancy or those unable to work due to injury or disability, was initially announced in early 2022. However, it was temporarily halted earlier this year when Prime Minister Chris Hipkins initiated a policy review in response to the cost-of-living crisis.

During a panel debate in Wellington, Robertson faced questions from National Party finance spokesperson Nicola Willis, less than six weeks before the upcoming general election.

The original concept for the insurance scheme involved funding it through levies on wages and salaries, with contributions from both workers and employers. Willis expressed concerns about the potential impact of such a “massive jobs tax” on businesses across New Zealand.

“That scheme is being put on hold until economic conditions improve,” Robertson said, according to a Bloomberg report. “At the moment economic conditions are not in a place where we can do it.”

In addition to addressing the worker insurance scheme, Robertson defended the recent increases in the minimum wage, which has risen by 20% over the past three years. He also questioned Willis about her stance on annual wage increases if she were to become finance minister.

Willis indicated her willingness to raise the minimum wage regularly, albeit with a more moderate approach than the current one Labour is touting. She emphasized the importance of simultaneously reducing the cost of living and increasing real incomes to benefit workers.

“What people want to see is the cost of living reduced and their real incomes increased and that’s what National is committed to,” Willis said. She also noted that National’s tax rate cut proposal for the highest wealth earners will not be in place next term.

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