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Home / New Zealand

Fuel crisis: Anti-poverty group slams lack of financial support for beneficiaries

Tyson Beckett
Tyson Beckett
Multimedia Journalist - Premium Lifestyle·NZ Herald·
25 Mar, 2026 05:00 AM3 mins to read
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An anti-poverty advocacy group has slammed the exclusion of beneficiaries from the Government’s fuel crisis support payments, labelling the decision “disgraceful”, and warning the move could push families into deeper hardship.

The Government has announced that, from April 7, about 140,000 families with children will receive an extra $50 per week, part of a boost to the In-Work Tax Credit (IWTC).

To be eligible for the credit, aimed at providing some relief amid increasing fuel prices, at least one parent must be in paid employment, and neither parent can rely on a benefit as their primary source of income. The credit will not extend to people receiving income support such as the jobseekers benefit.

Yesterday, Finance Minister Nicola Willis dismissed any suggestion of support extending to beneficiaries, saying no advice had been sought on the matter.

“Our focus is on working Kiwis.”

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She’d earlier justified that “working families need to pay to get to and from work every day, beneficiaries do not”.

Speaking to reporters, Prime Minister Christopher Luxon accepted the Government couldn’t alleviate pressure for everybody, but claimed the support package targeted the most “squeezed middle”.

“These are the people that are doing it the toughest.”

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The Government says beneficiary and superannuitant payments would be adjusted from April 1, as per normal.

Announcing the Government’s fuel assistance package, Finance Minister Nicola Willis acknowledged some people would say it wasn’t enough, but she reiterated her focus on controlling inflation. Photo / Mark Mitchell
Announcing the Government’s fuel assistance package, Finance Minister Nicola Willis acknowledged some people would say it wasn’t enough, but she reiterated her focus on controlling inflation. Photo / Mark Mitchell

Auckland Action Against Poverty (AAAP) has admonished the decision, saying “it’s absolutely disgraceful to exclude beneficiaries, who are already among the lowest-income households and doing it the hardest”.

“People on benefits still need fuel, to get to job interviews, take their kids to school, and attend medical appointments. For many families, a car isn’t a luxury, it’s a necessity,” AAAP coordinator Agnes Magele said.

Beneficiaries receiving assistance such as Jobseeker Support are required to attend suitable job interviews and meetings with Work and Income. Failure to do so risks their benefits being reduced or stopped.

AAAP has called on the Government to urgently extend the package to address wider issues, warning that the impact of rising fuel costs will go beyond transport, affecting access to food and other essentials.

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“We are deeply worried the Government will cause further malnutrition through its irresponsible lack of support for our most impoverished communities, if food also becomes less accessible due to the fuel crisis,” Magele said.

“The solution is simple: Extend this support to everyone on a low income, including beneficiaries. Increase benefit levels, remove harsh sanctions, and invest in more public housing so families aren’t stuck in unaffordable rents.”

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