Prime Minister Christopher Luxon on FamilyBoost failure, admits assumptions based on wrong information

Prime Minister Christopher Luxon blames assumptions on wrong information for a failure in the FamilyBoost payment scheme where only 1.2% of families the Government said were eligible received a full subsidy .

Luxon told Newstalk ZB’s Mike Hosking the policy was based on incomplete information provided by the Inland Revenue Department, which led to fewer families benefiting from the scheme than originally touted.

He was asked about the “cock-up” of the FamilyBoost scheme after the Government admitted the number of families it said would be eligible for the full $75 a week benefit of its flagship childcare tax policy was wrong.

“There was real challenges around obviously, the assumptions and around as to who was going to get what and who was entitled to what,” he said.

“But we did get $42 million out to 55,000 people, or families, which was actually really important.”

Listen: Christopher Luxon speaks to Mike Hosking.

Data shows that as of April 9, some 249 families had received the maximum amount available under the FamilyBoost scheme since it came into effect last year.

This is 1.2% of the 21,000 families the Government said were eligible for the full FamilyBoost payment of $975 a quarter or $3900 a year – a figure IRD now admits was wrong, although the actual number of eligible families remains unclear.

Christopher Luxon meets with New Zealand and British troops delivering training to the Ukrainian Armed Forces in the UK. Photo / Supplied

“We were trying to put it out as quickly as possible rather than make an IT system that would then take a year and a half to do.”

Hosking asked Luxon whether the issue was IRD’s fault or the Government’s.

“Clearly some of those assumptions are often incomplete information or wrong information.

“But, the key thing is the intention was to get money out the door quickly.

“Obviously there’s more that we can do there, and Nicola’s going to keep looking at it and see what else we can do.”

Luxon said the payment mechanism would be adjusted so the money would eventually go out to more families.

“We can fix that up.”

Luxon on Anzac Day, Pope Francis’ funeral

Luxon reflected on his trip to the Vatican and Gallipoli, describing Pope Francis’s funeral as “quite moving”.

“It was pretty special to represent New Zealanders there... and to see all those world leaders show up to recognise him and appreciate him was quite something.

“Applause would break out as different things were said and as his coffin was moved, and it was quite moving.”

“I had a good catch-up with the president of the European Union, the Philippines president, as well, Sir Keir Starmer, obviously, the Dutch Prime Minister, I ran into President Biden, who was there.”

Prime Minister Christopher Luxon attends the funeral of Pope Francis. Photo / Supplied

Luxon said he wanted to continue to “build and propel” New Zealand’s relationship with the UK.

“One is really around defence and security, awesome Kiwi companies, SYOS, that’s actually [done] a £30 million deal with the Ministry of Defence in the UK, unmanned, uncrewed equipment.

“Also, the free trade agreement has been fantastic in the last 12 months; we’ve had 21% growth in New Zealand exports to the UK.”

Luxon said New Zealand exporters were still feeling very positive about the US market post-tariffs.

“We’re not imposing retaliatory tariffs because it will just hurt New Zealanders and we’ll continue to make the case for New Zealand.”

Hosking asked Luxon what he thought of the image of US President Donald Trump and Ukrainian President Volodymyr Zelenskyy huddled together inside St Peter’s.

“It’s an incredibly challenging situation, as you well know, but it was quite powerful and evocative imagery seeing those two together sitting on the chairs, having a conversation at the cathedral at a funeral of a guy that was always talking about world peace.”

Luxon spoke at the dawn service at Anzac Cove in Gallipoli, Turkey last week. He was the first New Zealand Prime Minister in a decade to attend and described it as “another highlight of the week”.

“110 years later, we’re with the Brits in the south of England, training Ukrainian soldiers, 54,000 of them, to go back into warfare in a matter of days after being trained by New Zealand troops and British troops yet again.

“We haven’t come that far, have we, in some ways?” Luxon reflected.

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Jaime Lyth is a multimedia journalist for the New Zealand Herald, focusing on crime and breaking news. Lyth began working under the NZ Herald masthead in 2021 as a reporter for the Northern Advocate in Whangārei.