Nats release workers' 'rescue' package

National leader John Key has unveiled a $42-million-a-year redundancy support package that is more narrowly targeted than Labour's but gives more to those who receive it.

Mr Key announced the package on the campaign trail in Hamilton today, hot on the heels of Labour's announcement yesterday to remove means testing on the dole for 13 weeks - opening the door for couples where one is still in work.

Mr Key said National's plan would give more to those low-income individuals and families already eligible for benefit assistance, who missed out under Labour's plan.

It would allow people to continue receiving the "in work" component of Working for Families for an additional 16 weeks even after they lost their job.

It would also lift the ceiling of the weekly accommodation supplement by $100 a week to give greater support to those who had high rent or mortgage payments to meet for the same length of time.

Mr Key said people would have to have been in the same job for six months to receive National's additional assistance.

"This assistance will give redundant New Zealanders some space to sort out their financial affairs and get a new job or adjust their circumstances following a redundancy. It will give them a helping hand in a tough time."

Mr Key said the package would be relatively simple to administer.

"I don't want to add more bureaucracy to the already complex system of state support.

"National's package builds on entitlements that already exist and for which eligibility rules are already in place."

Whereas couples are the only ones to benefit under Labour's plan, National's plan would give more to single-income families or single workers who lose their job but are already eligible for the dole.

Most couples where one partner was still in work would be excluded due to their income.

Mr Key said National's package would be available for two years after which time it would be reassessed.

Labour leader Helen Clark yesterday said Labour's "job search allowance" would be a permanent feature of the benefit system if it was elected.

She said it was expected to cost $50 million a year "at the outside".

- NZPA