A Government scheme to supply cheaper whiteware for beneficiaries will be rolled out in the South Island this month following a single-supplier deal with Fisher & Paykel.
The scheme, announced in this year's Budget, aims to cut hardship assistance grants for whiteware by $10 million over five years.
The Ministry of Social Development paid out more than $10.5m in repayable grants in the last year to allow beneficiaries and low-income people to buy fridges, freezers and washing machines.
However, Social Development Minister Paula Bennett said the grants were commonly used to buy second-hand whiteware which could ultimately cost hundreds of extra dollars in repair and maintenance costs, increasing debt for beneficiaries.
The bulk purchasing deal for Haier appliances, distributed by Fisher & Paykel in New Zealand, will ensure new units cost about the same as an average second-hand unit. However, maintenance costs over five years are expected to be more than halved.