Social Development Minister Paula Bennett has been asked to pay out $15,000 to a mum whose welfare information she made public.
Privacy Commissioner Marie Shroff's office wrote to her last week suggesting the settlement, the New Zealand Herald reported.
Solo mother Natasha Fuller made the complaint to the office after Ms Bennett released her details after she complained about cuts to her Training Incentive Allowance.
Ms Bennett told the newspaper the money sought was for "hurt and humiliation" and she would not pay it.
"I ruled it out right at the beginning, there wouldn't be any cash settlement and I was incredibly surprised, particularly after her advocate [Labour MP] Charles Chauvel saying that she wasn't looking for a cash settlement, to then get a letter from the Privacy Commissioner a matter of days later saying categorically that she was."
Ms Fuller and Ms Shroff declined to comment.
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