11. Families Package—Effect on Working Families and ReportsANAHILA KANONGATA'A-SUISUIKI (Labour) to the Minister for Social DevelopmentFamilies Package—Effect on Working Families and Reports11. ANAHILA KANONGATA'A-SUISUIKI (Labour) to the Minister for Social Development: Will the Families Package support working families; if so how?Hon CARMEL SEPULONI (Minister for Social Development): Absolutely. It's not just families out of work or on a benefit who are struggling. We recognise that there are also a large number of New Zealanders who are trying to balance low-paid work with raising a family and are finding it hard. Action this Government is taking under the Families Package will reduce inequality and put more money in the pockets of thousands of hard-working Kiwi families by boosting Working for Families family tax credit payments increasing the accommodation supplement introducing a Best Start payment that gives families with a baby born or due on or after 1 July 2018 $60 a week until their first birthday and up to age three for lower-income families and increasing paid parental leave to 26 weeks by 2020 which will provide greater financial certainty and confidence for working families. The Families Package enables—SPEAKER: Order! This is question time not speech time.Anahila Kanongata'a-Suisuiki: What reports has the Minister received to indicate that poverty amongst those in work is an issue for New Zealand?Hon CARMEL SEPULONI: The Household Incomes in New Zealand report is clear that after housing costs are taken into account around 40 percent of poor children are from low-income families where there is at least one adult in full-time employment. The figures are very similar for families in material hardship. Around 40 to 50 percent have at least one adult in full-time employment. The working poor is now a common issue facing Governments in most OECD countries. While paid employment is the way out of poverty and hardship for most families it needs to be sustainable. For many a small change in income or an unexpected bill can be disastrous. That is why the Families Package is so important. It will increase the incomes of many low-income families with children by meaningful amounts and help these families thrive.Anahila Kanongata'a-Suisuiki: In real terms what will the Families Package deliver for working families?Hon CARMEL SEPULONI: As part of the Families Package the Working for Families abatement threshold is increasing from $36350 to $42700. These changes mean that around 26000 more families are eligible for Working for Families tax credits in 2018-19. As a result of the Best Start tax credit families will receive $60 per week in the first year of a child's life. For those on lower incomes those payments will continue until their child turns three. These changes are expected to benefit around 65000 children born each year. Due to changes being made to the accommodation supplement around 135000 families will gain an average of $35000 per week. Three hundred and eighty-four thousand New Zealand families are going to be better off with our Families Package. Hon Louise Upston: How will giving $35000 to someone earning $160000 a year—say an MP for example—through their families and education policy help lift children out of poverty?Hon CARMEL SEPULONI: This Families Package is about New Zealand families—low- to middle-income New Zealand families; 384000 families will benefit from this package many of them low-income families.