Redundancy help package detailed

A package to assist those made redundant in the current economic turmoil will cost $50 million over two years if 70,000 people lose their jobs.

The Government announcement of the economic assistance package today is almost identical to that outlined by National during the election campaign.

The "ReStart" package offers short term help for up to 16 weeks to low and moderate income families with children, and to people with high housing costs.

Those made redundant will be offered:

* A payment for families with children and who lose the In Work tax credit will get $60 a week for families up to three children and $15 a week for each extra child;

* A top up of the accommodation supplement for those who qualify for the maximum payment of $100 more a week.

* Assistance with getting a new job.

Officials said 800 people had been made redundant in November, though usually up to 40 percent of these would find a job quickly.

The payments will be eligible from November 8, but the first payments will not be until January 1.

Officials said the $50 million cost over two years -- which is how long the package will exist for -- was based on 70,000 people being made redundant.

They said this was not a forecast but a worst case scenario.

The scheme would cost $1 million to administer.

Social Development Minister Paula Bennett said the package was designed to give some breathing space to those hit by redundancy.

NZPA