May 23, 2022
Cost of living crisis bigger than Budget pittance
Save the Children New Zealand says the cost of living payment in the Budget falls well short of what’s needed.
As many as 2 million people earning under $70,000 will get the $350 payment, but it won’t go to beneficiaries who receive the winter energy payment.
Advocacy and research director Jacqui Southey says that’s disappointing as they need the extra support.
She says every week families have to make decisions about what to cut next, and research shows an income shortfall of between $100 and $300 a week.
“We talk about good budgeting and what the government’s responsibilities are but the government’s responsibilities essentially are to relieve the hardships of people who need it most and these are families on incomes that are too low. It’s stark to have to think about what it means to have a shortfall of $3000 a week to pay the costs that are essential to a family,” Ms Southey says.
She says the best way to fix the cost of living is to bring housing costs down to an affordable level.