The Government is launching its delayed election promise to extend the flexi-wage scheme, which the Prime Minister expects to "help thousands more New Zealanders into employment".
Jacinda Ardern launched Labour’s election campaign in August last year , promising to have an expanded flexi-wage subsidy in place by Christmas.
Last month, 1 NEWS revealed the Government had failed to get the expansion in place before the turn of the year, as promised.
In November, Ardern said having the scheme up and running by the end of the year was the Government’s second highest economic priority.
The expansion would increase the average subsidy to $7,500 and is aimed at giving 40,000 potential employees access to the subsidy by putting an additional $300 million into the scheme.
"We made a commitment to expanding Flexi-wage during the election and today’s announcement delivers on that promise," Ardern said.
About 6000 employers received the flexi-wage subsidy last year.
The previous wage scheme gave employers about $3500 to hire a person at risk of long-term unemployment and who were also receiving a benefit or at risk of losing their job.
Social Development Minister Carmel Sepuloni said that in expanding the flexi-wage programme, "eligibility has been widened from initially helping job seekers on a benefit and at risk of long-term unemployment, to now include job seekers disadvantaged in the labour market who may not necessarily be receiving a benefit".
"The duration of the subsidy will be based on the needs of the person employed and lines up with evidence of effectiveness and international literature on the effect of wage subsidies."
National social development spokesperson Louise Upston said earlier this year she was "just not sure why the Government have waited and failed to deliver on getting people into work" by delaying the expansion.
The scheme helps businesses employ workers most at risk of long-term unemployment, a growing concern during the pandemic.
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