National leader Christopher Luxon has announced a new election-year policy that would give low-and-middle-income families a 25% rebate on their childcare expenses.
The policy was part of National's "state of the nation" address that saw Luxon again push the cost of living as a dominant issue ahead of this year's general election.
Luxon said the new policy, called "FamilyBoost", could give families up to an additional $75 a week. The policy would cost about $249 million per year.
"Today I am pleased to announce a policy that will make a huge difference to many young families.
"National’s FamilyBoost childcare tax rebate will help 130,000 low-and-middle-income families keep more of what they earn, with up to $75 more in their after-tax pay each week.
"Families will receive a 25 per cent rebate on their early childhood education expenses, up to the maximum of $3900 per year.
"It is a targeted programme that will be available to families earning up to $180,000, with the full $75 a week rebate available to those families earning up to $140,000," he said.
The National leader said the new rebates would be funded by "cutting wasteful spending on contractors and consultants".
Attacking the Government, Luxon said the "gravy train" for consultants had "skyrocketed" in the past year, and that, if elected, the party would slash "working groups" and stop further agency restructures.
One of the country's major supermarkets is looking at importing more fresh produce to make up for shortages. (Source: 1News)
"National will direct public sector agencies to end the culture of relying on contractors at a premium to do the regular job of a public servant," he said.
"The culture of public servants rebranding as contractors – only to do the same job at twice the hourly rate – is chronic in Wellington."
The rebates will gradually reduce as family income increases from $140,000, according to National. The maximum weekly rebates for families earning $150,000, $160,000 and $170,000 are $56.25, $37.50, and $18.75, respectively.
"It is not right that you have to choose between your childcare or your house. That is not a decision that Kiwi families should have to make," Luxon said today.
"But after five and a half years of Labour, these are the decisions that families are making around Kiwi kitchen tables right now... Our plan will specifically target lower and middle-income families, to make their lives a bit easier."
The rest of the opposition leader's address set the scene for National's campaign in the run-up to the October election.
Luxon again stressed his "five-point plan" for tackling cost of living pressure and inflation.
A large number of people are also falling behind on their credit card repayments. (Source: 1News)
"I don’t accept the status quo. I don't accept that the highest inflation in 32 years and rapidly rising interest rates is the best we can do," he said.
"I want New Zealand going forwards, not backwards".
The party leader reiterated familiar criticisms made against the Government — including on crime, housing, school attendance rates, and hospital waiting times.
National's state of the nation address was initially planned for February but had been pushed back twice, due to weather warnings prior to Cyclone Gabrielle.
Govt bites back on childcare policy
Social Development Minister Carmel Sepuloni claimed that National's plan was poorly targeted and that the quarter-billion-dollar package wasn't properly costed.
"Today’s policy from National is not very well thought through and doesn’t target those who need the most help, particularly those on the lowest incomes," she said.
"It also appears they haven’t properly thought through how they’ll pay for it," she claimed. "When we introduced 20 Hours ECE in 2007 there was an increase in average hours attended per week for three and four-year-olds of around 8-10%.
"If just a quarter of the 130,000 households increase the number of hours their child spends in childcare by 5 hours a week, their policy blows out by around $70 million a year – and that’s likely to be a conservative estimate," Sepuloni claimed.
The Government had announced its own $190 million support package to provide more childcare assistance to families last year.
ACT leader David Seymour responded to today's policy announcement by suggesting that National's policies were "remarkably similar" to Labour's. It suggested that the party should instead adopt more tax cuts in its cost of living response.
"Labour’s announced a remarkably similar policy in November last year. There is a fairer way to support Kiwis struggling with the cost of living than giving handouts," he said.
"The best way to address the cost of living crisis for all Kiwis is a tax cut for every earner,
"A commitment to cutting wasteful spending from National is welcomed. But the next Government can’t just trim the sails, the country needs to sail in a whole new direction."
Meanwhile, Green Party co-leader Marama Davidson said the policy showed National "completely misunderstood the reality of what it’s like to live on a low income".
“National has opposed action to boost the incomes of families trapped in poverty, they want to put harsh penalties on solo parents and will make life harder for people who rent," she said in a statement.
“It simply will not wash for National to offer support for childcare if in every other area of life they are going to make life so much harder. It is especially concerning that the National Party isn't planning to invest at all in early childhood education itself."
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