The Privacy Commissioner has been unable to resolve a complaint against the Minister of Social Development, Paula Bennett.
The complaint was lodged by a beneficiary, Natasha Fuller, after Ms Bennett publicly revealed details of the state assistance given to her and another woman last July.
The women had criticised a Government decision to cut back a training incentive allowance.
Ms Fuller sought $15,000 compensation from Ms Bennett.
Privacy Commissioner Marie Shroff says the parties were unable to reach a settlement.
Ms Bennett says the complaint against her is unresolved because she refused to pay a cash settlement. She says she is disappointed but is unable to comment further.
The commissioner has referred the matter to the Director of Human Rights Proceedings at the Human Rights Commission.