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Income increases for New Zealanders

Income increases for New Zealanders

  • 04 Apr 2022
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The New Zealand Government’s actions to ease the pressure on low and middle-income people, whanau and aiga will put more money in their pockets from April 1.

The biggest increase to main benefit rates in a generation will see rates come into line with the key recommendations of the Welfare Expert Advisory Group (WEAG).

Minister for Social Development and Employment Hon Carmel Sepuloni says it is known the pandemic has been tough for many people throughout Aotearoa.

“These increases will help put food on the table, and pay power bills in the winter months, as well as showing this Government’s ongoing commitment to lifting incomes for all New Zealanders,” Minister Sepuloni says.

Rates for families with children will increase by an additional $15 per adult, per week, meaning these rates are above what the WEAG recommended.

This follows the increase on July 1 last year and is over and above the usual April 1 annual general adjustment to main benefit rates.

The Ministry of Social Development modelling shows that compared to 2017 policy settings, the Government’s significant lifts to main benefits will see around 364,000 beneficiaries better off by on average $109 per week, increasing to $133 per week during the 2022 winter period, Minister Sepuloni adds.

“Over 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.

“Couples with children are $237 per week better off on average and then around $268 per week during winter.

“These increases underline our determination to reduce inequality and are a step towards addressing child poverty.”

In addition to main benefit increases, Childcare Assistance income thresholds will also increase annually, in line with net average wage growth.

This will maintain current levels of Childcare Assistance for parents as wages grow.

Working for Families tax credits (Best Start Tax Credit and Family Tax Credit) will also increase from April 1, providing many lower income and beneficiary families with a meaningful boost to their weekly income.

The Orphans Benefit and Unsupported Childs Benefit have increased, bringing them into line with payments made to carers through Oranga Tamariki; with additional increases to reflect the Working for Families increases.

“Our Government has lifted benefit incomes across the board more than any other previous government and these are the largest increases since the 1940’s,” Minister Sepuloni says. 

“We’ve also continuously raised benefit levels, invested $5.5 billion through the Families Package, increased the minimum wage year on year and invested heavily in employment, education and training.”

Meanwhile, Minister for Workplace Relations and Safety Hon Michael Wood says many Kiwis who earn the minimum wage have gone above and beyond in New Zealand’s fight against COVID-19.

“We remain committed to supporting New Zealanders by raising their wages, as we continue to recover and rebuild from the pandemic.

“This increase of the minimum wage will directly benefit approximately 300,000 workers and will help many households that have been most impacted by the effects of COVID.

For someone working a 40-hour week on the minimum wage, this increase will see them earning an extra $48 a week, and almost $2,500 more each year,” he says.