Labour will remove restrictions on the unemployment benefit as part of a $50 million transitional assistance package for those who lose their jobs as a result of the faltering global economy, Prime Minister Helen Clark has announced.
Miss Clark released Labour's plan today, pre-empting a similar package from National that will be announced tomorrow.
Under Labour's package, all people who lose their jobs will be able to claim the unemployment benefit for 13 weeks without any means testing.
The "job search allowance" will only be available to those who are laid off, not those who are sacked or choose to leave their jobs.
The estimated $50m cost will come from existing baseline funding.
Miss Clark said the package was fair, applied to everyone and was simple to administer.
Labour is keen to match recent promises by National's leader John Key about his party's assistance package.
He has said it will involve temporary cash grants for people with significant financial commitments, such as mortgages, who lose their jobs as the result of economic conditions.
Earlier today Mr Key said the jobless victims of the global slowdown would not have to repay some of the help given to them under National's plan.
Mr Key said a National government wanted to give people who lost their jobs an ability to transition from "one job to another, or maybe a higher income to another, or maybe get used to the fact that they are going to have less income".
He said there would be a time limit, but people would have to wait until tomorrow for the details.
Mr Key said people who lost their jobs would qualify for the dole but the rescue package would give them a bridge to re-arrange their lifestyles.
