Income boost for people who need it most

This Government is leading the world with a wellbeing approach to fiscal management. That means we see the purpose of economic activity as being to promote the wellbeing of people – and that is related to the capability of people to lead the kinds of lives they have reason to value.

Money is a form of currency, but so is time – including time on nonmarket activities such as caring for family and participating in personal leisure.

The inequality gap that has grown larger over decades has left many families time-poor and unable to meet their basic needs, let alone able to make choices that they judge will contribute to their leading the kinds of lives they value.

Such choices could include watching children play sport, attending church or community events, relaxing, or participating in a hobby.

Last week the Government delivered on a range of policies designed to support the Kiwis who need it most. I know this will make a big difference for hard-working families here in Taieri.

First, the minimum wage increased to $20 an hour, fulfilling an important election promise for Labour.

About 175,000 New Zealanders and their families will benefit from this increase, which equates to about $44 a week more before tax for a fulltime worker.

In total, our minimum wage increases over the past three years mean the lowest paid New Zealanders working full time now earn $170 a week more before tax.

This support for Kiwis on the lowest incomes has also been extended to people who are unable to work or struggling to find a job.

On April 1 , main benefit levels and superannuation rates increased by 3.1 per cent for more than

1 million New Zealanders.

This was the second increase to main benefit levels as a result of our policy indexing main benefits to average wage growth, and it’ll see rates increase up to $16.16 a week.

About 390,000 people and their families will be better off with the annual increase to benefit rates – more than double what it would’ve been using the old inflation adjustment.

The children’s commissioner said the single best thing the Government could do for children in poverty was ‘‘to see child benefits linked to wages’’. That’s what we’ve done here, and it’ll be a change that sticks – supporting this generation of young people and the next.

Benefit abatement rates also increased last week – the abatement threshold being the limit of how much a person can earn each week before their benefit is affected.

For example, a person on JobSeeker Support can now earn up to $160 before tax per week before their benefit reduces.

Overall, about 82,900 low-income individuals and their families will be better off by $18 a week on average. Delivering on this election promise means people on benefits can keep more of what they earn and find their feet again faster.

There is still much more to do, like building more homes, improving our health system, and investing in education, training and job opportunities. But, as we emerge from the Easter break, I think the raft of changes that have just come into force will make a big difference.

These policies represent longoverdue improvements to how we support the Kiwis who need it most.

They represent real delivery, and I’m proud to be part of a government focused on that.

The children’s commissioner said the single best thing the Government could do for children in poverty was ‘to see child benefits linked to wages’.