Help for struggling Kiwis
Autumn has well and truly arrived and temperatures are starting to cool. But, if the Easter break wasn’t enough, I have good news to cheer up anyone feeling down about the summer’s end.
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 Whanga¯ rei.
First, the minimum wage increased to $20 an hour, fulfilling an important election promise for Labour. Since 2017, we’ve steadily lifted the minimum wage by $4.25 an hour in total – particularly significant compared to the $3.75 increase the previous National Government managed in all its nine years.
About 175,000 New Zealanders and their families will benefit from this increase, which equates to around $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 fulltime now earn $170 a week more before tax.
This support for Kiwis on the lowest incomes has also been extended to people 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 over one 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 by 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 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 thresholds also increased last week – these being the limit of how much a person can earn each week before their benefit is impacted. For example, a person on Jobseeker Support can now earn up to $160 before tax a week before their benefit reduces.
Overall, around 82,900 lowincome 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.
Cumulatively, our families package and main benefit changes to date mean that about 111,000 families with children are now on average $118 a week better off. In fact, that figure rises to $150 a week during the winter period, thanks to the winter energy payment.
I’m also looking forward to when quarantine-free travel between New Zealand and Australia begins, as this will give our economic recovery a boost, as well as reuniting friends and families.
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 people in Whanga¯ rei who need it most. They represent real delivery, and I’m proud to be part of a government focused on that.
Come discuss your thoughts about our future at our Hikurangi Community Hui at the Hikurangi Memorial Hall on Saturday.