Chris Hipkins
Minister, Ministerial Services
Minister, National Security and Intelligence
Prime Minister
Kia ora, everybody. Good afternoon. From the end of this week, around 1.4 million New Zealanders will have a little bit more money in their pockets to help them deal with the cost of living. This includes 880,000 pensioners and 52,000 students. Over 8,000 hard-working community nurses in aged-care facilities, hospices, and Māori and Pacific healthcare organisations will also be paid more from 1 April. The Government committed to pay parity for community nurses last year, and this change will give many nurses outside of our hospitals a pay bump of up to 15 percent from next month. From July, those at Plunket, Family Planning, school nursing services, mental health and addiction, rural hospitals, and telehealth will also see increases to their pay. This comes on the back of tens of thousands of nurses in hospitals getting an increase in base pay of around $12,000, or 14 percent, a few weeks ago.
Since becoming Prime Minister, I’ve been focused on the things that matter most to New Zealanders right now, and that’s making sure that if you work hard, you can afford to provide for yourself and for your family. This Government is increasing the amount people earn. From June 2017 to June 2022, the median wage has increased by nearly a quarter— 23.85 percent. This has meant that our pensioners have received more every year as well, because superannuation payments are linked to two-thirds of the average wage. This year, with higher inflation, payments have instead been matched to the CPI, which is higher, to make sure that people don’t fall behind. This means that a couple on super will be better off by more than a hundred dollars every payday after 1 April.
Students will also see a bump in their allowance and loan living costs, with single students under 24 without children getting over $20 a week more. From 1 April, our increases to the childcare subsidy also come in, covering more than 10,000 children and meaning more than half of all New Zealand families with children will now be eligible for subsidised childcare assistance, as will the increases to the family tax credit and Best Start payments, which will help many Kiwi families. While these measures alone won’t fix everything—and we’ve still got more work to do to bring down inflation and the cost of living—they will make a difference, and right now I know that every bit helps when it comes to making ends meet. I’m also able to confirm today that we’ll be introducing legislation that will see 41,000 sole parents better off by around $20 a week. Last year, we committed to changing the rules so that child support payments would be passed on directly to families rather than collected and paid out through the benefit payments, as they are currently. This was a recommendation made by the Welfare Expert Advisory Group, and we agree with it. These changes are estimated to support parents to lift up to 14,000 children out of poverty and make the system less discriminatory. It’s the right thing to do, and it will give these sole parents a bit of extra cash each week to spend on their kids. It comes off the back of figures last week that show that despite the tough economic times that we are in, which would usually see child poverty rates climbing, we’ve instead seen no statistically significant change. Our children have not fallen backwards. It’s a promising result, but it shows that we still have further work to do. Rates of child poverty are lower than when we came into Government, and we started measuring progress then, and there are further changes still to come, one of which I have just talked about today. Our focus is clearly on the issues that matter: growing wages, helping families to get ahead, and bread and butter issues like the cost of living.
Now to the week ahead, tomorrow I am here at Parliament. On Wednesday, I’ll be spending the morning out in Trentham, in the mighty Upper Hutt, where I’ll be meeting with the Police and we’ll be talking about the changes being made to their front-line and tactical training. I will then be back in here for question time in the afternoon. On Thursday and Friday, I’m in Auckland at businesses and to talk about the cost of living. And, on Saturday, I will be getting my flu and COVID-19 vaccinations and encouraging New Zealanders to do the same.