Budget 2021: ACC-style unemployment insurance scheme proposed by Government

The scheme, revealed today as part of the 2021 Budget, is set to provide a buffer in an increasingly uncertain job market.

The Government revealed today it is proposing an ACC-style unemployment insurance scheme.

The proposal looks to provide about 80 per cent cover for a limited time after a person loses their job and is linked to training opportunities.

Finance Minister Grant Robertson said the scheme “would cushion the impact of a job loss”.

“It would give workers the financial stability to find the right job for their skills, or to retrain for a new, fulfilling career path,” he said.

" Covid-19 has exposed how vulnerable employment can be, and the risk to dramatic income loss from employment to unemployment.”

“Finding a job takes time, and many workers may accept lower-paid jobs that don’t match their skillsets, because financial pressures mean they need work quickly.”

Robertson told media it was a “work in progress”, with a target if implementation in 2023.

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