The Government is spending $2 billion on a welfare package Prime Minister Chris Hipkins calls “bread and butter support” to take the “bite” out of the rising cost of living.
The package will see the incomes of about 1.4 million New Zealanders stay in line with inflation, supporting pensioners, students, children and parents, and those on main benefits.
It includes an extra $311m to be spent over the next four years that allows main benefits to be increased in line with inflation – 7.22 per cent – rather than the average wage rise as previously planned, which was costed at about $1.7 billion.
Boom.
Here’s $2Billion worth of bread and butter on another bonfire of policy redirections (which is defined as anything that winds Mike Hosking up which is a problem because Labour breathing winds Mike Hosking up)
- About 1.4 million people will benefit, including pensioners, students, children and parents, and those on main benefits.
- Superannuation will increase by over $100 for a couple per fortnight and nearly $70 for individuals.
- Main benefits to increase by the rate of inflation, meaning a family on a benefit with children will receive an extra $40.86 a week and a sole parent will receive an extra $31.83 a week.
- Student support rates will increase in line with inflation, with single students under 24 without children getting an extra $20.21 per week.
- Package to cost over $2 billion, including $311 million over four years to tie increases to inflation rather than average wage rises.
Chippy is being ruthless at killing things that aren’t delivering while lifting benefits.
This is clever, unexpected and shows Labour have come to win.
Unfortunately it doesn’t really do a fuck of a lot.
Sure, those increases are a first great step, but we don’t need first great steps, we need huge giant leaps!
As TDB has been warning, Food inflation hit 12%, what happens when it’s 15%?
20%?
We are not factoring in the hyperinflationary pressures coming and food security and housing are worse than ever before!
These modest increases aren’t enough for what is coming.
At some point Chippy has to tax the rich!
In terms of policy burn off, it’s all smart stuff that most voters will see as showing Chippy’s values.
He’s dumping the 16 year old voting rights because he can’t get 75% super majority but he will pass it for local elections. He’s dumping things that might lift costs beyond what they are already going up by.
It’s smart politics and it’s a good band aid.
But it’s just a band aid.
At some point, Chippy has to tax the rich.
Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice – please donate here.
If you can’t contribute but want to help, please always feel free to share our blogs on social media
With recently announced bank profits of almost $8 billion during this inflationary period it becomes more urgent that the NZ Labour Caucus bite it’s capitalist masters.
I agree. 10k tax free threshold would help us too, please.
Chippy is being very smart. I wonder what Ardern is thinking as he throws all her brain fart policies on the bonfire.
The same policies Hipkins supported until it wasn’t convenient?
Good question.
Yes!
There’s a fair bit of “We’ve always been at war with Eastasia” in that the tribal Labour element who were defending the previous policies are now equally staunchly defending the dumping of them.
One wonders what it’s like to be inside their head!
And yet we see by your right wing comments when you continually attack those that support the left, that there is very little to nothing in your head.
Or until at least there was an economic environmental disaster that needed priority. Like what all good governments would do.
So the Govt prints currency out of thin air, mainly gives it to the well off (e.g. house owners) and then when the absolutely predictable inflation that THEY CAUSED happens, they try and look like the good guy by given a net-fraction of the destruction THEY CAUSED back to the poor.
It’s all about how the media spin it. But the basics are undeniable.
The Labour Govt CAUSED this inflation and knew they would !!!! ………….to be fair ALL Govts do the same though
That inflation is giving workers the biggest payrises in over 40 years. Last time inflation was at 0-2% no one got any payrises at all.
With inflation as high as it is workers need a pay rise just to stay afloat .When inflation was low it was just a matter of adjusting your spending. I am old enough to remember the high inflation of
18% in 1980 . It was a terrible time with strikes and unrest with social media now acting as tool the galvanize people it could get really ugly if it gets that bad.
So you think people shouldnt get payrises then?
Also you have to remember, when inflation was 0-2% the government slashed social spending, and closed scores of hospitals.
Rich pricks like you have had it way to good, for way too long, coining it up and driving ronnd in your ford range. No more!
The over 65’s deserve a bigger pay rise than that other was Hip kinds risks them falling into the loving arms of Winnie.
Yep, for sure paying everyone more and generally throwing newly minted money at inflation will definitely curb the inflation bought on from paying people to sit around for months on end to do nothing! Oh wait. That’s not how that works, and it won’t work here. This government is I think the worst in my lifetime, and I remember Muldoon.
So you would just freeze wages for most of people’s working lives. No wonder you support ACT.
This govt is a joke – both left and right. Problem is, there is no incentive to work. As the minimum wage gets closer to people actually getting degrees, why will people bother getting an education when they can sit on the couch and collect a benefit?
Middle income is getting screwed here as anything over $48,000 NZD (which is very low) are now paying 30% tax. The equivalent is about $25,000USD — we are a low wage economy taxing the heck anyone who is working and have no children (not using any services) – where is the relief for childless couples?
On another note, the reason the “gubermint” won’t do anything about monopolies like food, gas, petrol is because they have a huge tax take on all of them. All of their “working groups” that we are paying for as taxpayers do F*&K all, just cost us more money = lip service and an insult to the taxpayers. Not to mention FOOD PRICES in this country. Another reason the gubermint won’t do anything is for 2 reasons
1) government is not paying a subsidy to those farmers exporting (thus WE the taxpayer foot the bill for other countries to get our food on the cheap
2) They are getting GST for the already shocking prices of food in our own country.
Time for NZ to be like Switzerland and give the farmers who are farming in a good way – subsidies – this way it keeps food cheap for those who actually LIVE HERE, and export what is left over. The people of this country deserve to eat well, but our government has essentially sold the people out…all the way.
Comments are closed.