Govt boosts welfare payments in response to rising cost of living

As of 1 April, more than a million New Zealanders have received an inflation-adjusted increase in their minimum wage, superannuation, benefits, veteran’s pensions and student supports.

According to government estimates:

• Approximately 223,000 workers have received a wage rise as a result of the minimum wage increasing to $22.70.
• 8,000 community nurses have received a pay increase of up to 15%.
• 880,000 pensioners (including 5,000 veterans) have received an increase to their superannuation.
• 52,000 students have received an increase to their allowance or loan living costs.
• 10,000 more children are eligible for subsidised childcare.

“Across the world inflation is causing costs to rise and New Zealand has not been immune. That’s why the Government is focused on helping Kiwi families with extra cost of living support,” Prime Minister Chris Hipkins said.

“There is more to come, with the Best Start payment increasing, the Winter Energy Payment going to all beneficiaries and superannuitants from 1 May, and child support will be passed on to sole parent beneficiaries from 1 July. 

RBNZ aiming to reduce inflation

New Zealand’s inflation rate is at its highest level since 1990.

A large part of the reason the Reserve Bank of New Zealand (RBNZ) has been increasing the official cash rate has been to reduce economic activity, and thereby drive down inflation.

“Inflation is still too high and persistent, and employment is beyond its maximum sustainable level,” the RBNZ said in a statement earlier this month.

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