Mother Natasha Fuller laid a complaint under the Privacy Act in 2009 after Ms Bennett released her benefit details to news media when she complained about cuts to her training incentive allowance.
The Privacy Commissioner referred the complaint to the Human Rights Commission in June 2010 after neither party could reach a settlement.
Director of Human Rights Proceedings Robert Hesketh announced today that the complaint had been resolved after Ms Bennett wrote a letter to him.
"On the basis of the minister's letter to me, I have agreed to close my file. The matter has been resolved to the satisfaction of all parties.
"We have all agreed that the letter speaks for itself and we will make no further comment."
In the letter, dated July 30, Ms Bennett said she strongly supported the rights of individuals to comment on government decisions.
"I acknowledge that you consider that I was wrong to do so and that this resulted in a breach of Ms Fuller's privacy.
"As you also know, I do not accept that view. But the purpose of this letter is not to further debate the merits of our respective positions."
Ms Bennett said she wanted to acknowledge the personal cost of the public debate to Ms Fuller.
"I was personally shocked and concerned by the unpleasant, hurtful and personal comments some members of the public made about Ms Fuller."
She added: "It was certainly never my intention that Ms Fuller would find herself in that unpleasant situation."
She said that Ms Fuller wanted to move on with her life and she hoped her letter would bring the matter to a close.
- By Isaac Davison of the New Zealand Herald
