Increased benefits rates and $380 million for Māori housing in Thursday's budget will help, but don't address Hawke's Bay families living in motels, those in the emergency housing sector say. Photo / NZME
A Budget spend-up aimed at lifting people out of poverty is "sensible", but is unlikely to make the 1000-plus people in emergency housing in Hawke's Bay significantly better off, those in the sector say.
Budget First manager Kristal Leach was pleased to learn all weekly benefit rates will increase bybetween $32 and $55 per adult in April 2022.
She said the extra $20 a week would be a big help, especially as demand on their services helping with budgets had increased in the last year.
"We've seen an increase of about 25 per cent in people seeking assistance in accessing their KiwiSaver funds under hardship."
It would make the biggest difference for those on the jobseeker support benefit, she said - this will go from $267 a week to $315 a week, a 17.9 per cent jump.
The sole parent support benefit, which is currently at $398 a week, will jump to $434 a week in April 22 - a 22 per cent increase.
Leach was also pleased to see student living support increased by $25 per week, adding that it was "a long time coming" and "really needed for our students".
News that the Government was bringing back the Training Incentive Allowance, aimed at getting 16,000 people to retrain and gain higher skills, was also welcomed.
"For some of the school leavers that aren't wanting to access tertiary education, anything that will help them get into work would be a huge advantage for that age group.
"I think that's a really sensible idea."
Between 40 to 50 people access Budget First services a week, looking for budgeting advice or help getting into rentals and first-home programmes, she said.
Leach said increasing rents and a lack of housing were among the main factors pushing families into hardship.
"One of the issues for Hawke's Bay is we've got a significant housing shortage.
"That has impacted people on low and fixed incomes, or low-wage families."
Wages increases to date hadn't kept up with "significant" rent rises, she said.
"It's also becoming harder and harder for first-home buyers."
Maureen Mua, chief executive of Roopu a Iwi Trust, which provides social services in and around Napier, was more sceptical.
While an extra $20 to $50 might be a lot of money for those who don't have any, it wouldn't do much to address the root causes impacting many families, she said.
"It's a start but it's not going to make much of a difference.
"I don't think it's what's required to meet the rentals which are being charged."
An extra $380 million invested into Māori housing might get families into 1000 new homes - a mix of papakāinga housing, affordable rentals, transitional housing and owner-occupied housing - and see 700 Māori-owned houses upgraded.
She said this did little to address the issue of whānau living in motels and emergency accommodation.
As of December 2020, Napier (741) led the way with the highest number of people on the Housing Register in Hawke's Bay, followed by Hastings (706), Wairoa (85) and Central Hawke's Bay (68).
Napier (168) also had the highest number of children on the emergency housing waiting list in the region, followed by Hastings (30), Wairoa (15) and Central Hawke's Bay (12).
"It wasn't glaringly obvious that there was anything for those in motels," Mua said.
"There's no long-term housing solution for them."
She said this year's Budget was "nothing to boast about".
"It just seems very plain. There's nothing really outstanding or earth-shattering.
"I would have loved to see more."
One aspect of the Budget she was more excited about was the $200m funding boost for Pharmac.
"It's very limited at the moment."
Tukituki MP Anna Lorck said lifting benefits would have a significant positive flow-on impact for Hawke's Bay in that more money would be spent supporting local retail and small businesses.
"Budget 2021 is committed to seeing regions like Hawke's Bay go from strength to strength through greater infrastructure investment.
"Housing for Hastings will take off under Budget 2021 with the announcement of even more investment for papakainga, where Hastings is a leading region."
She said volunteer community organisations who were helping struggling families had told her that "supporting those who need it the most" was where the biggest difference could be made.