Prime Minister Jacinda Ardern underlines income and support measures

Prime Minister Jacinda Ardern is underlining the government's 1 April measures that are aimed at supporting New Zealanders with the cost of living.

Ardern is marking a range of living cost measures outlined in last year's Budget - some of which are set to come into effect tomorrow - including increasing the family tax credit benefiting about 60 percent of its recipients, an across the board increase to benefit rates and increases in support for superannuitants.

In a statement, Minister for Social Development and Employment Carmel Sepuloni said these increases would help address costs for whanau doing it tough in the pandemic and winter months.

"These increases underline our determination to reduce inequality, and are a step towards addressing child poverty," Sepuloni said.

Ministry of Social Development estimates compared to 2017 policy settings:

• 364,000 beneficiaries will be better off by on average $109 per week, increasing to $133 per week during the 2022 winter period.
• 109,000 beneficiaries with children will be better off by on average $175 per week, increasing to $207 per week during the 2022 winter period.
• 255,000 beneficiaries without children are estimated to be better off by on average $81 per week, increasing to $101 per week during the 2022 winter period.

In February, the government confirmed the minimum wage would increase by $1.20, bringing it to $21.20 per hour, starting from tomorrow.

In a statement, Minister for Workplace Relations and Safety Michael Wood said the increase to the minimum wage would benefit about 300,000 workers.

"For someone working a 40-hour week on the minimum wage, this increase will see them earning an extra $48 a week, and almost $2500 more each year," Wood said.

From 1 May, a million New Zealanders will start receiving the winter energy payment, which is expected to put an extra $700 into people's pockets during the colder months.

Half-priced public transport also starts from tomorrow for three months.

But anti-poverty campaigners have said the benefit increases would still leave families trapped in poverty as the cost of living skyrockets.

Inflation hit its highest level in 30 years, with an annual rate of 5.9 percent for 2021 and an increase of 1.4 percent in the three months ended December.

"The whole world is dealing with inflation as a result of Covid costs, supply chain issues and the war in Ukraine. Kiwi households are feeling the effects too which is why we've taken swift action that will make a difference for families right now," Ardern said.

The government was also committed to getting to the sources of financial stress for people, including the lack of competition in supermarkets, she said.

"Tomorrow's improvements are on top of help we've already provided to families like 45 million free lunches in schools, free GP visits free for children aged 13 and younger, removing donations at over 90 percent of schools and increasing paid parental leave to six months."

Govt 'playing catch up'

National Party leader Christopher Luxon said the changes would barely cover the rising cost of living and the government was simply "playing catch up".

"Labour is giving with one hand and taking with the other. Increases in benefits and minimum wage will be quickly eaten away by the rising cost of living.

"At the same time, they are planning to squeeze motorists further with increases to petrol costs from its biofuels mandate."

The party was calling on Labour to adjust tax brackets for inflation at the upcoming Budget, he said.

"Inflation is pushing more Kiwis into higher tax brackets and Labour is taking more money out of people's pockets at a time when there is a cost of living crisis."