Scoop has an Ethical Paywall
License needed for work use Register
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Benefit Settings Rise In Line With Wages As Of 1 April

Hon Carmel Sepuloni

Minister for Social Development

 
 

PĀNUI PĀPĀHO

MEDIA STATEMENT

Main benefits will increase by over 3 percent, instead of 1.66 percent, on 1 April with the Government’s decision to annually adjust benefit rates to increases in the average wage.

The Minister for Social Development, Carmel Sepuloni, said that 310,000 families will be better off from this change and that the move to index main benefits to increases in the average wage was fairer for those needing help.

“This is the largest increase outside of one-off adjustments in nine years.

“We take a similar approach to adjusting Superannuation, so it’s fairer, more consistent, and will help reduce poverty amongst our most vulnerable.

“Adjusting rates to increases in the average wage ensures we share the benefits of a strengthening economy, and means those on benefits don’t fall further behind.

“Sole parents rate of benefit will increase by $10.48 per week because of the change. Under the previous system, they would only receive an increase of $5.64 per week.

“This is also the first of four years that income abatement thresholds will be increased in line with movement in the minimum wage, removing a disincentive to work.

“Simply put, if we are expecting people to become independent and find sustainable employment, discouraging them from taking additional work on offer simply doesn’t make sense. We’ve fixed that.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“So as of 1 April, these changes mean a sole parent will be able to earn $115 of other income per week before their benefit begins to reduce, instead of $100.

“These changes are an important step forward in helping New Zealanders out of the poverty trap. At Budget time I said that it is time for change. This Government is delivering.”

Editor’s Note:

Over 1.2 million individuals are to receive increased financial assistance as a result of the Annual General Adjustment. This includes approximately:

· 800,000 people receiving New Zealand Superannuation and Veteran’s Pension will see their rate increase by just over 3 percent so that they remain at 66 per cent of the net average wage.

· 310,000 people on a main benefit will see their rate rise by 3.09%, in line with movement in the net average wage

Main benefits include:

· Emergency Benefit

· Grandparented rates of Domestic Purpose Benefit for solo parents and Widow’s Benefit (paid overseas under a Reciprocal Agreement)

· Jobseeker Support (including student hardship rates)

· Sole Parent Support

· Supported Living Payment

· Youth Payment/Young Parent Payment

Rates and thresholds of other assistance will increase by 1.66 percent, in line with movement in the Consumers Price Index (less the cigarettes and tobacco subgroup).

· 60,000 students receiving Student Allowance will see increases indexed to the Consumers Price Index.

· 70,000 people receiving supplementary assistance only will see increases indexed to the Consumers Price Index.

From the 1st of April, the increase in main benefits will be 3.09 per cent, which is nearly double with the CPI rate would have been at 1.66 per cent.

Using current calculations a sole parent could get an extra $10.48 a week, a single disabled person $8.44 extra a week, a Jobseeker beneficiary aged 25 or over $6.78 extra a week or, for a 20-24 year old Jobseeker beneficiary, an extra $5.63 a week.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop Post Election Podcast: The River Of Freedom Documentary Review

After recording a River of Freedom review the Scoop Political Podcast went into hibernation. Now with a new Government formed it’s time to dust off this forgotten silver and look at the potential impact this documentary, about the Wellington parliamentary protest of 2022 had on Election 23. Watched by potentially tens of thousands of voters in the weeks prior to the election this movie was not likely to have won votes for the then Labour government. More

Gordon Campbell: On The Skewed Media Coverage Of Gaza

Now that he’s back as Foreign Minister, maybe Winston Peters should start reading the MFAT website which is currently celebrating the 25th anniversary of how Kiwis alerted the rest of the world to the genocide in Rwanda. How times have changed ...

In 2023, the government is clutching its pearls because senior Labour MP Damien O’Connor has dared suggest that Gaza’s civilian population - already living under apartheid and subjected to sixteen years of an illegal embargo, and now being herded together and slaughtered indiscriminately amid the destruction of their homes, schools, mosques, and hospitals - are also victims of what amounts to genocide. More


 
 
ACT: Call To Abolish Human Rights Commission

“The Human Rights Commission’s appointment of a second Chief Executive is just the latest example of a taxpayer-funded bureaucracy serving itself at the expense of delivery for New Zealanders,” says ACT MP Todd Stephenson. More


Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.