Ross Jami-Lee: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeRoss Jami-Lee: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 25 September 2013. Volume:693;Page:13681. Text is incorporated into the Bound Volume.]1.JAMI-LEE ROSS (National—Botany) to theMinister of Finance: How is the Government supporting New Zealand families through the economic recovery?Hon BILL ENGLISH (Minister of Finance): Despite large deficits the Government is committed to supporting families through uncertain times. For instance households earning less than $60000 per annum which is around 50 percent of all households pay no net tax; that is they get more in income and accommodation support paid parental leave Working for Families and welfare support than they pay in tax. We have also focused assistance on those most in need with $190 million for the next stage of welfare reforms to get people off benefits and into work; $100 million insulating 215000 homes; $41 million extra for early childhood education for the most vulnerable; $24 million for rheumatic fever prevention which is again focused on the most vulnerable families; and theKickStart Breakfast in schools programme which is again focused on the most vulnerable families.Jami-Lee Ross: What changes has the Government made to income tax rates and other taxes to help families get ahead?Hon BILL ENGLISH: The 2010 tax switch reduced taxes on work and savings and increased taxes on consumption and property speculation across all income levels. That 2010 Budget also provided for better targeting of Working for Families. Two-thirds of the value of the income tax cuts in 2010 went to reducing the bottom two tax rates. Someone on the average wage of around $50000 was immediately $15 a week better off as a result of the tax changes. Three-quarters of taxpayers now face a top personal rate of 17.5 percent.Jami-Lee Ross: What effect is the Government’s approach having on inequality and how is the Government working to ensure households get a fair deal?Hon BILL ENGLISH: The Ministry of Social Development tracks household incomes and reports that income inequality is falling slightly after peaking in the mid-2000s so we are starting to undo some of the damage done by the previous Labour Government to New Zealand’s equality. There are a variety of reasons for this. The tax and redistribution system favours the bottom 50 percent of households. Our investments in welfare health and education have been focused on the most disadvantaged.Whereas the previous Government focused on subsidies to people on middle incomes we are focusing on solving long-running problems of welfare dependency poor educational achievement ill health and family violence.Jami-Lee Ross: What progress is the Government making in supporting more people into work improving health care and education outcomes?Hon BILL ENGLISH: The member does not really need to ask this question because you can track progress by going to the Government website and looking at the Better Public Services results. As at 30 June this year the number of people continuously receiving a working-age benefit for over 12 months has fallen by almost 3000. In March this year 89 percent of 8-month-olds had been immunised and Māori immunisation rates are for the first time ever as high as mainstream immunisation rates and in fact in some parts of the country are higher than amongPākehā children. The proportion of 18-year-olds with National Certificate of Educational Achievement level 2 has increased to 77 percent from 74 percent the previous year.