Opinion: Government trying to help low-income families

It's good to see the Government trying to help low-income families. Photo/file

It's good to see the Government trying to help low-income families amid spiralling living costs.

However, Prime Minister Bill English has this week had to defend a Budget move to increase the accommodation supplement by up to $80 a week per household from April 1 next year.

The Labour Party says the increased supplement will become a cash cow for property investors because just 11 per cent of those receiving the welfare payment own their own home.

The inference is that some landlords will simply hike up the rents in order to get a slice of the supplement.

Mr English says the supplement will put cash directly in the pockets of tenants and denies it will be an opportunity for landlords to gouge more money on rents.

As we have seen in Tauranga, rents have been going up alongside house prices. Landlords have been raising rents according to the market.

However, that's not to say they would gouge tenants in order to soak up the Government supplement.

Of course, there will be an unscrupulous few who may see it as an opportunity to boost their own coffers but hopefully, most landlords will recognise the supplement boost is sorely needed.

The Government had to do something to help families caught out by rising rents. Increasing the accommodation supplement was the only real option.