Election 2014

3 Nov 2008

Labour poised to announce help for recession jobless

7:55 am on 3 November 2008

The Labour Party is planning to announce transitional assistance for people made redundant during the international financial crisis.

Party leader Helen Clark said Labour believes there is not enough support for one particular group, but would not give any details.

The National Party has said it will this week announce plans for provide assistance to victims of the recession.

Leader John Key floated the idea on 25 October, saying help would be provided on a short-term basis to cover mortgage, rent and other bills, and later indicated the assistance would be in the form of a grant.

He has declined to comment on speculation the policy would be funded from earnings generated by the bank deposit guarantee scheme.

Miss Clark said suggestions National would fund its policy through scheme will make people nervous as the money may not be available for its intended purpose when it is needed.

Labour has already announced it would introduce statutory minimum redundancy payments, and a retraining allowance for people who have lost their jobs after five years in the workforce.

Employees who want to retrain after being in the work force for 10 years would also be entitled to financial help.