Jacinda Ardern
Associate Minister, Arts, Culture and Heritage
Minister, Child Poverty Reduction
Minister, Ministerial Services
Minister, National Security and Intelligence
Prime Minister
Kia ora koutou katoa. This week is a recess, so Parliament is not sitting, but a busy week none the less. Tomorrow I will be in Auckland undertaking electorate work, but I will also be visiting Papatoetoe High School and also the Auckland City Mission. On Wednesday, Minister Woods and I will be in Taupō for the sod-turning at Contact Energy’s Tauhara new $580 million geothermal power station. This is an exciting project which aligns with our priority to reduce carbon emissions and move New Zealand to 100 percent renewable electricity by 2030. On Wednesday night, I will present the Kiwibank New Zealander of the Year Award.
This Thursday, April the 1st, sees the delivery of a range of Government policies. First, the minimum wage will increase to $20 an hour, fulfilling a key pre-election promise that we made. Since 2017, we have lifted the minimum wage by $4.25 an hour in total. That is significant when compared to the $3.75 increase that occurred over the whole nine years of the previous National Government. Around 175,000 New Zealanders will receive this week’s increase, which equates to around $44 a week more, before tax, for a full-time worker. In total, our minimum wage increases over the last three years mean the lowest-paid New Zealanders who work full-time now earn $170 a week more before tax.
This Government’s support for those on the lowest incomes is also extended to those who find themselves unable to work or struggling to find work. On April 1, main benefit levels and superannuation rates will also increase by 3.1 percent for over 1 million New Zealanders. This is the second increase to main benefit levels as a result of our policy of indexation and will see rates increase by up to $16.16 a week. Around 390,000 families and individuals will be better off with the annual increase to benefit rates—more than double what it would have been using the old inflation adjustment measure. Benefit abatement rates will also increase this Thursday, the abatement threshold being the limit of how much a person can earn each week before their benefit is impacted.
Overall, around 82,900 low-income individuals and their families will be better off by $18 a week on average by the delivery of this election promise to ensure those on benefits can keep more of what they earn. Cumulatively, our Families Package and main benefit changes to date mean that around 111,000 beneficiary families with children are now $118, on average, better off per week than they would have been without those changes. In fact, that figure rises to $150 per week during the winter period, thanks to the winter energy payment. There is still much more to do, including building more homes, improving our health system, investing in education, training, and job opportunities, but as we head into the Easter break, I think the raft of changes that come into effect later this week represent real and long-overdue improvements to the support we provide to our most vulnerable. These are policies that represent real delivery.
I have Minister Sepuloni here, so if we have any questions on those April 1st changes, perhaps we’ll start with those, and then we can move into any general questions for the remainder of post-Cab.