‘Bread and butter support’ package may help many in Whanganui, but is a band-aid for larger issues

The recently announced cost of living support package from the Government was expected to help many in Whanganui. Photo / Bevan Conley

The “bread and butter support” cost of living package announced by the Government was expected to help many people in Whanganui, but was seen as a band-aid for larger issues.

The Government announced significant increases to superannuation, benefits and student support as part of the package, which will come into effect on April 1.

The package will cost $311 million and was expected to help around 1.4 million New Zealanders struggling in the crisis, according to the Government.

As part of the package, superannuation would rise by the same amount as inflation - 7.22 per cent in the December quarter.

This means a couple both aged over 65 will get around $102 more per fortnight, and a single pensioner living alone would receive an extra amount of around $66 dollars.

Age Concern Whanganui manager Michelle Malcolm said the increase would help a lot of people struggling with the cost of living.

“I think its a positive move from the Government to increase the pension, especially at a time when things are very challenging for people with the cost of living,” she said.

She said Whanganui had the second-largest population of older people per capita in New Zealand, so the increases would especially help the community here.

“I think for everyone at the moment, with the significant increase we’ve seen with this cost of living, it’s great to see the Government is aware of what that looks like out in the community,” she said.

To further help older people, she hoped the increases would be reviewed if the cost of living continued to increase.

Benefits will also increase by the same 7.22 per cent amount pensions will increase by, meaning a family on a Jobseeker benefit with children will get around $41 extra each week.

Sole parents on the Jobseeker benefit will see an increase of around $32.

Working for Families will also see increases, with Best Start payments rising to $69 per week and the eldest child rate of the Family Tax Credit rising to $136 per week.

Whanganui Budget Advisery Services’ Sandy Fage said what was announced in the package was great, but there was more to be done to address the causes of the crisis.

“We’re just putting a band-aid over lots of little problems.

“We’re putting a band-aid over the problem that landlords’ rents are too high; we’re putting a band-aid over the problem that food costs too much; we’re putting a band-aid over the problem that banks are charging too much,” she said.

The announcement of the package came on the same day StatsNZ released data showing food prices had risen by 12 per cent in a year to February, the highest annual raise since 1989.

It was also revealed this week that yearly bank profits soared to record heights over the last year, despite the difficult economic situation for many New Zealanders.

New Zealand’s banks made a record $7.18 billion in 2022 - a net profit after tax that was a billion dollars higher than the year before - but are expected to face tougher times ahead, according to KPMG’s Financial Institutions Performance Survey.

These changes will also come into effect on the same day the minimum wage will be increased to $22.70 per hour.