Source: Radio New Zealand
Louise Upston says the government has been very clear that any response needs to be targeted. RNZ / Mark Papalii
The Green Party is crying foul after the government admitted more than half of families in material hardship will not benefit from its fuel support package.
In question time on Wednesday, Social Development Minister Louise Upston confirmed only 48 percent of those families will get the $50 boost to in-work tax credits.
“According to the latest figures from Statistics New Zealand for 2024-25, 48 percent of children in material hardship are in working households. This support we are providing is intended to be timely, temporary, and targeted at those most in need,” she said.
Ministers – including the Prime Minister Christopher Luxon and Finance Minister Nicola Willis – have repeated emphasised the need for relief to be “targeted and temporary” to avoid adding to debt.
Upston did the same.
“Our government is very clear about the fact that what is happening in the Middle East is having an impact on many New Zealanders, with the fuel-price pressure that they are facing,” she said.
“We are also very clear that any response needs to be targeted, timely, and temporary, otherwise every single person in New Zealand would be affected by inflation going up again.”
However, the Greens’ spokesperson Ricardo Menendez March said the figure undercut the government’s claim of focusing on those who most needed support.
Ricardo Menendez March. RNZ / Samuel Rillstone
“That is 52 percent of parents with children material hardship won’t be covered by the in-work, tax credit boost … this may be children of beneficiaries. That may include people who were recently made unemployed. It may include parents with lifelong health conditions. It may include people who have been struggling with homelessness.
“People on income support including disabled people, still need to access fuel to get to the doctor, to get to job appointments, to pick up their kids from school, and will be the most impacted by the fuel crisis.
“It’s inexcusable and callous for the government to completely exclude them from receiving support.”
Upston on Wednesday acknowledged to RNZ that support was available to beneficiaries and others who might need help – and requests for such help was likely to increase.
“There is already assistance available for costs for those on a benefit to get to an interview if they need it – but if you look at this fuel price pressure it will have an impact on a range of households, so yes, I expect that there will be more seeking assistance.”
Upston and Willis have also pointed to the planned increase to benefit rates coming on 1 April.
However, March said that was disingenous.
“Advances for fuel comes as debt, so she’s basically asking our poorest to enter into debt,” he said.
“The other assistance that exists in the form of the Transition to Work grant is quite limited, and most people don’t get to access it, and it only covers things like job appointments, not necessarily picking up kids from school or doctor’s appointments.
“The increase that people will see to their benefits on the 1 April is something that is legally required … the indexation has nothing to do with the fuel crisis and it’s disingenuous to pretend that this is actually meeting the scale of the challenge that people in poverty will face.”
Speaking to reporters before heading into Question Time on Thursday, Willis pointed to the increase to benefits coming on 1 April.
“Their families will already be receiving an increase in income. The in-work tax credit is different from many other benefits that are paid in that it’s not adjusted for inflation and these are working parents who also face a wider range of obligations.
“So we think it’s appropriate that those working parents are who we target with this relief.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
