Minimum Wage Increase Fails To Match The Real Cost Of Living

Māngere Budgeting Services Trust welcomes the government’s decision to increase the minimum wage, which will provide some relief for many low-income workers.

However, a 2% increase does not keep pace with the real cost-of-living pressures families are facing.

The cost of essential items such as food, electricity, rates, and insurance continues to rise at a higher rate than wages.

From what we are seeing on the ground, a more meaningful and sustainable approach would be to align the minimum wage with the living wage, currently $28.95 per hour.

This rate more accurately reflects the true cost of meeting basic household needs.

Any transition toward this must be supported by improved productivity and a stronger economy.

“For many of the families we support, employment no longer guarantees financial security,” says Lara Dolan, Chief Executive Officer of Māngere Budgeting Services Trust.

“We are seeing working parents who simply cannot keep up with the rising cost of necessities. A minimum wage increase that does not match real-world costs leaves too many people behind.”

For families and communities, the issue is not simply having a job, but whether that job provides enough income to live with dignity.

While the Trust remains deeply committed to its vision and mission, it cannot continue its mahi with limited funding, particularly in its food support programmes, at a time when demand is growing rapidly.

“Our food support and financial capability services are being stretched to their limits,” Dolan says. “Community organisations like ours are on the frontline of the cost-of-living crisis. Without increased and sustainable government funding, we risk not being able to meet the needs of families who need our support.”

Māngere Budgeting Services Trust urges the government to increase funding for frontline community services, strengthen the economy, lift productivity, and create meaningful employment opportunities that allow families to not only survive, but thrive.

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