Benefit increases aim to help lift Northland out of poverty, says Labour MP Emily Henderson

Shannon and her partner Teresa are on the benefit while supporting children, Sarah-Jane, Isabella and Jaxon. Photo / Michael Cunningham

Low and middle-income Northlanders can expect more dollars in their pockets from today as the Government begins its "cost of living package".

The focus is mostly on beneficiaries, with main benefit rates increased by between $20 and $42 per adult per week.

Families will receive extra support from the rollout with increases in Childcare Assistance, Working for Families, Orphans Benefit and Unsupported Child's Benefit.

For Whangārei mother of three Shannon, the changes can't come soon enough.

"The benefit increases are great, we welcome them, hallelujah."

Shannon and her partner Teresa are beneficiaries as each is waiting for surgery to address injuries that prevent them from working.

It's been tough for the couple to lose income. Teresa was working full-time until November, and delays in the public health system because of Covid have prolonged the issue.

"We've been struggling. Every little bit helps."

Shannon is a keen baker and Teresa is a chef, so they enjoy home-cooked meals more than eating out and do their best to make budget school snacks.

While "$20 might be great now", Shannon knows what she could afford to buy her family with the extra money is dwindling as the cost of living rises.

"Twenty dollars might not go as far for some people but coming from a low-income family, my mother taught me how to stretch one dollar," said Shannon.

"If food prices and gas prices continue to go up, we've still got to pay for all of that to survive."

Shannon's sole job for the past 12 years has been her children, especially as one child required extra care after open heart surgery at 13 days old.

"I've been on the benefit probably for the past eight to 10 years.

"Living week to week has been really hard. Our [children] need school uniforms and books and stuff."

Trying to find work they can manage with their injuries while raising three children is difficult, Shannon said.

Their situation has been exacerbated by the restrictions on how much she is able to earn before her benefit is reduced, she said.

"We're trying to help ourselves and survive but while we're doing that we're getting punished because essentially, we're earning more money than we should, but we're only earning the money that helps us survive."

Whangārei MP Emily Henderson said the benefit and income increases from the Government are deeply important for the Northland area as the goal is to lift people out of poverty.

"For a very long time we've been a region with more poverty and a higher number of beneficiaries and a lower median wage so it is directly relevant to here."

Whangārei MP Emily Henderson said her party's policies will give struggling Northlanders extra support to assist with the rising cost of living. Photo / Michael Cunningham

Henderson said her time as a Family Court lawyer in the 1990s left a "vivid impression" on her when benefits were cut under the "Mother of all Budgets".

"I remember working with young mums who could no longer get their teeth fixed when they were sick.

"It was pretty evident that increased poverty meant increased hardship and dysfunction for quite a few people."

She said the increases show the Government's focus on helping families and people with lower to middle incomes.

"Those are the people we want to support because those are the people we see as having the greatest hardship.

"There's no shame in taking time off with your children if that is actually better for you and your kids. Children deserve the support of a parent."

Henderson refuted claims higher benefits could encourage people to avoid work. She said there is still "pressure and encouragement" for people to be employed.

"I think anyone who says that it's an easy life on the benefit should talk to some beneficiaries.

"We are not in favour of people staying on benefits any longer than they can manage but we are obviously there for those who cannot manage anything else."

Henderson said the money given to those on lower incomes is more likely to be spent at local shops and services and not saved.

"There's real advantages in supporting people on the minimum wage and those on lower incomes, for us all as a society.

"If you raise people from the bottom, you put that boost straight into the local economy."