Politics live blog
'Our whānau deserve better': Opposition MPs slam National's changes to benefits
Social Development Minister Louise Upston this morning introduced her bill to increase main benefit rates in line with inflation. Opposition MPs have argued this will leave beneficiaries worse off, because inflation is now lower than wages.
Benefits are adjusted every year, but in 2022 main benefits were linked to the average wage when wages were rising faster than inflation. At the time, Chris Hipkins said it was a practical solution to ensure those being supported by the Government didn’t fall behind. Inflation at the time was at a 30-year peak of 7.22%. It has since dropped to 4.7%, according to Stats NZ and is now lower than wage growth, set at 5.3%.
Upston, in a press release, also said linking benefit adjustment to inflation will save taxpayers $669.5 million over the forecast period through to 2027-28.
“These changes will protect the real incomes of benefit recipients and low-income working families for years to come, while also making sure the cost of the benefit system to taxpayers is sustainable and manageable in the long-term.”
Labour and Green MPs gave blistering critiques of the bill, which they say will worsen child poverty and embed inter-generational poverty.
Labour's Carmel Sepuloni, the former social development minister, said it would effect Māori, women, Pasifika and disabled people the most.
"They should be ashamed of themselves," she said.
"That the minister stands up in the house and says they will continue to increase benefits; we know that the minister is being disingenuous.
"Is it sad [that the] the only reason they are doing it is they went into an election campaign promising tax cuts with no actual plan for how they were going to actually be paid for.
"But where is that money coming from? It is coming from the poorest New Zealanders who are struggling more than anyone else in this country during a difficult time with the cost of living, and they feel no shame about the fact that they are doing it?"
Te Pāti Māori Takutai Tarsh Kemp said "our whānau deserve better" and challenged the government to go to Manurewa Marae or speak to the Auckland City Mission to gain an accurate picture of poverty in New Zealand.
Labour's Willow Jean Prime said it was a "mean-spirited change" and pointed out that advocates including the former Children's Commissions Judge Andrew Becroft, supported Labour's moves to index benefits to inflation, not wages.
She pointed out how women, Māori, Pasifika and disabled would be more effected.
"Women make up 55% of those receiving main benefits, approximately 39% of people on a main benefit are Māori compared to being only 17% of the population," she said.
National MP Greg Fleming said, after hearing from members on the opposite side of the House, that they have the same aims - just different methods of getting there.
Labour's Carmel Sepuloni, the former social development minister, said it would effect Māori, women, Pasifika and disabled people the most.
"They should be ashamed of themselves," she said.
"That the minister stands up in the house and says they will continue to increase benefits; we know that the minister is being disingenuous.
"Is it sad [that the] the only reason they are doing it is they went into an election campaign promising tax cuts with no actual plan for how they were going to actually be paid for.
"But where is that money coming from? It is coming from the poorest New Zealanders who are struggling more than anyone else in this country during a difficult time with the cost of living, and they feel no shame about the fact that they are doing it?"
Te Pāti Māori Takutai Tarsh Kemp said "our whānau deserve better" and challenged the government to go to Manurewa Marae or speak to the Auckland City Mission to gain an accurate picture of poverty in New Zealand.
Labour's Willow Jean Prime said it was a "mean-spirited change" and pointed out that advocates including the former Children's Commissions Judge Andrew Becroft, supported Labour's moves to index benefits to inflation, not wages.
She pointed out how women, Māori, Pasifika and disabled would be more effected.
"Women make up 55% of those receiving main benefits, approximately 39% of people on a main benefit are Māori compared to being only 17% of the population," she said.
National MP Greg Fleming said, after hearing from members on the opposite side of the House, that they have the same aims - just different methods of getting there.