Families assistance package on trial

A landmark legal challenge to the Government's Working For Families package opens today, with campaigners claiming 150,000 beneficiary children live in poverty because their parents do not receive the payment.

The Human Rights Tribunal hearing in Wellington, set down for four weeks, follows four years of legal wrangling and attempts by crown lawyers to stop the case, first put forward by Child Poverty Action Group in 2004.

The Crown will call six witnesses, including two representatives from the Organisation for Economic Cooperation and Development who will give evidence on work incentive schemes in other countries.

No Government ministers would be called, Deputy Solicitor-General Cheryl Gwyn said.

The Child Poverty Action Group's case is supported by the Human Rights Proceedings Office.

The group claims that the Government's in-work tax credit - part of Working For Families - breaches the Human Rights Act because it discriminates on the basis of work.

The in-work tax credit, previously called the child tax credit, is worth $60 or more a week - about $3000 a year - to low-income working families with three children.

Group researcher Donna Wynd said a range of reasons existed as to why parents could not work, including sickness.

"We do not believe children should be bearing the brunt of what their parents can or can't do."

The court case is the first challenge to Government policy since amendments to the Human Rights Act in 2001 allowed for such challenges through the tribunal.

An attempt by the Crown in the High Court to have the case thrown out on the grounds that the group was not itself a victim was dismissed in 2006.

Ms Gwyn said the Crown would argue that the in-work payment was not discriminatory.

"But even if it is in a technical sense under the Bill of Rights Act, in any event it's a justified limitation."

About 230,000 children have parents on a benefit, and about 150,000 are defined as living in poverty, the group says.

It defines poverty as living on less than 60 per cent of the median income - about $43,000 a year after tax.

A solo mother with two children on the domestic purposes benefit received $23,000 net a year - less than 55 per cent of the average income, Ms Wynd said.

Children in such circumstances were more likely to suffer disease, perform poorly at school and live in substandard housing.

"The bottom line is [the payment] means that there is more food in the house."

The group was not arguing against parents who worked, she said.

"Our argument is that this a payment for children disguised as a work incentive. It should be available to all children."

- © Fairfax NZ News