Wellbeing Budget a boost for Competenz stakeholders

Budget 2021 web image

21 May 2021

Competenz welcomes a number of measures in the Government’s Wellbeing Budget 2021, released on Thursday 20 May, that will directly benefit Kiwi employers, employees, and the vocational education sector.

For an overview of the whole budget at a glance, visit The Treasury website.

For initiatives related to Competenz or the industries we serve, read on.

For vocational education:

Reform of Vocational Education (RoVE) funding

A further $279.5 million has been allocated over the next four years to invest in the future transformation of the vocational education and training system, which includes plans to build a more unified funding system.

For learners and employees:

The Social Unemployment Insurance scheme – coming 2021

The Government will design a new safety net to help Kiwis who lose their jobs. The Social Unemployment Insurance scheme is proposed to support workers in retaining about 80 percent of their income for a period after they lose their jobs. There would be maximum and minimum income caps.

While no date for its launch has been set, Finance Minister Grant Robertson says it would work like ACC does for accidents, but to cushion the impact of a job loss and is born out of recent COVID-19 experiences. The scheme will be designed in conjunction with BusinessNZ and the New Zealand Council of Trade Unions (CTU). It will be modelled on similar schemes overseas. More details here.

Return of the Training Incentive Allowance

The Government plans to assist 16,000 people to retrain, gain higher skills and transition into new careers by bringing back the Training Incentive Allowance. The Allowance supports those most affected by the economic effects of COVID-19 - sole parents, carers, and disabled people - on eligible benefits with the upfront and ongoing costs of study, such as fees, books, transport and childcare costs. Read more on this allowance from Social Development and Employment Minister Carmel Sepuloni here.