Maddy Lesa has been looking for a rental property for about 5 months and just found one. Photo/George Novak.
Maddy Lesa has been looking for a rental property for about 5 months and just found one. Photo/George Novak.
Adjustments to a raft of Government policies today will see small increases to welfare payments, pensions and student allowances, but concerned local parties are not impressed and say it is not enough.
Social Development Minister Anne Tolley confirmed last month that pensions would rise by 2 per cent, while studentallowances and accommodation subsidies increased by only 0.51 per cent.
Welfare payments for 440,000 New Zealanders have increased by the same amount.
Also on the list were larger subsidies for first-home buyers under National's HomeStart programme and extended paid parental leave.
KiwiSaver grants for first-home buyers on modest incomes will be doubled if the property is a new build and paid parental leave will be increased from 14 weeks to 16 weeks and the parental tax credit will rise from $150 to $220.
Despite the increases, local networks and organisations voiced their concerns to the Bay of Plenty Times yesterday with the overwhelming opinion that it was not enough.
Grey Power Tauranga president Christina Humphreys said she did not know how people were surviving on the Superannuation or Veterans Pension alone and they needed increases to keep up with the rising costs of living.
"We'll take whatever we can get but 2 per cent isn't enough," she said.
"Some people are really struggling. I don't know how they survive really."
She was paid $282 weekly which could quickly disappear to rising rent or rates expenses if they did not have the support of her husband's income, she said.
"A lot of people are of the opinion the country can't afford it [supporting pensioners] ... We have paid into all of these things our whole lives, we've paid tax and all those things, so we deserve these things."
Age Concern Tauranga chairwoman Deborah Jager said it was important for Superannuation or Veterans Pensions to keep up with rising costs.
"It's great that there's an increase, don't get me wrong, but does it take into account what else might be going up in that period? ... We just want to make sure it reflects other costs that might be going up."
NZ Students' Association president Rory McCourt slammed the 90c, or 0.51 per cent, increase to students' accommodation supplement.
"It won't go anywhere towards the real rent increases students are facing," he said.
Maddy Lesa, of the Tauranga University Students network, said the Government needed to consider an increase that would make a reasonable difference.
"Any increase is beneficial but with how expensive houses are, especially in central urban areas, it's not really going to be a huge help.
"A 90 cent rise will only be a small speck in the scheme of weekly rental costs."
New Zealand Federation of Budgeting Services chief executive Raewyn Fox said the 0.51 per cent increase to welfare payments was not keeping up with the rising costs of necessities like rent, food, transport and power.
"The people we see are struggling quite a bit, she said.
"Unless they've got other resources they're struggling to survive.
"Every extra dollar helps if it means they can buy another loaf of bread, but it's not enough."
