Chippy drops $2billion worth of Bread and Butter but still spread too thin

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Cost of living: Government’s $2 billion boost to benefit levels, superannuation, PM Chris Hipkins’ ‘bread and butter support’

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.

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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.

 

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58 COMMENTS

  1. 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.

  2. I wonder when he’ll announce that NZ Govtis starting its own oil and gas exploration industry along with a state owned refinery, so that his govt can invest the 100billion profit into all social programmes? As they say Go woke Go broke and we went woke. So we going broke.

    • I see Norway, the darlings of climate change cultists who’s trillions from oil prop up their self-righteousness, it’s opening up to tenders for additional exploration.

      They obviously never had their ‘nuclear free moment’ that’s done what for NZ?

      • on the upside norway is civilised in the way its own deals with it’s people something we can’t even remotely claim bg

        • This is hilarious! It’s also off-topic and I don’t give a fuck.
          RNZ
          “Auckland’s City Rail Link cost climbs by $1 billion”
          Firstly, post 1984 Auckland privateer criminals stole our rail infrastructure, asset stripped it then pulled it up all throughout our agrarian primary industry hinterlands to give freight to their dodgy mates in road transport and now Auckland’s criminal elite want a billion dollars of your money to squeeze their minions and slaves through little holes to bleed them dry. Again.
          Is that a brazen crime or am I wrong again when really I’ve been correct all along? Is AO/NZ re writing the social sciences of Professor Stanley Milgram or what?

  3. And how much of that 7.22% will actually be seen? And what will Orr do in the face of higher wages?

  4. Chippy is being very smart. I wonder what Ardern is thinking as he throws all her brain fart policies on the bonfire.

      • which is what ministers do it’s called being in a party and a cabinet…in public united but who knows what was actually said in cabinet? he may have opposed certain policies there, I don’t know and you certainly don’t carry on

      • 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!

        • happens with every change of govt of any hue andrew

          the insides og their heads is like any backpeddling ande flip flopping nat starting with fester

          • Not so much for the liberal centrist parties, because rather than being ideologically driven, they’re more based on simple pragmatism. Chippie’s recent moves may indicate a welcome step in that direction.

            Time will tell if it’s sufficient and if he really means it.

            • and who are these ‘liberal centerist’ you speak of andrew, all I see is neo libs to right of me, neo loibs to the left of me

              • If that’s all you see, a visit to Spec Savers might be in order, Yuri. Either that, or remedial reading classes.

        • 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.

    • ” I wonder what Ardern is thinking as he throws all her brain fart policies on the bonfire ”

      With the promise to bring them back when he has won a mandate.

    • Like the IRR? Income-Related Rent. 25% of that increase disappears automatically.

      Or Debt. Weekly deductions get ‘reviewed’ all of a sudden with an arbitrary demand for an increase in repayments because ‘you can afford to now’.

      I’m guessing they’re still using the 1992 formulae to come to the adjusted amount, increase instead of a straight line inflation, cost of living adjustment.

      They still have 20+ years of inflation adjustments to make as this will be only the second year they have increased benefits for only those two years. 2017(?) and this one.

      • I said it before, say it again, government can not increase benefits /wages to keep up with inflation and runaway costs. it can only do that with regulation, and Labour refuses that steadfastly. This is kindnesswashing, virtue signaling, and basically begging the faithful to stay faithful and please do not stray.

      • And if, the sky-fairy forbid, someone finds a cheaper rental, their accomodation supplement is docked, leaving them no better off than before.

  5. So unless that increase in main benefits don’t affect other benefits it is a futile exercise in virching that could actually cost beneficiaries. Never mind the increased tax take the government will get, as they will never just move the tax threshold to 0 say on the first 25.000 income a year.

    • and it can be uncoupled so it doesn’t affect other benifits like the last round of ‘increases’ it’s not difficult it was done for the heating allowance…we shall see.

      • Well that is the only fringe benefit from whom that applies, and Labour had the last three years to uncouple the fringe benefits from the main, and has not done so. But keep the faith. Any day now. Surely.

        • I don’t think they will for 1 minute bratty, when is 2 billion not 2 billion?, when msd claw it back…impressive headline figure though

  6. Oh ffs! Asset test Superannuants!

    Those that don’t need it, like those ex pollies with the Gold Plated taxpayer-funded retirement plan definitely don’t need it.

    If youre worth $5m-$10m+ you don’t need it.

    Super sucks up $14b of the $23b welfare budget. Akshull welfare costs less than $6b of the budget.

    • Nah. As they say, be careful what you wish for.

      Then you’ll get the same mess that happens with the Aussie means tested state pension. Creates so much paperwork they get themselves in a muddle. They are too trying to catch people slipping under the radar.

      Best to have a universal pension then address inequalities through the tax system.

      • The Australians have subsided superannuation. There is a two tier system because of this. Center Link is no MSD. They are cut throat and have no care for the welfare of their clients.

    • the catchment for means testing ALWAYS widens denny, whatcha gonna say if it stretches to YOUR oldies?

  7. Deport the foreign owned banksters after asset stripping them then conduct a public inquiry by independent regulators into the immense wealth of the few individuals who scammed billions out of a relatively small population of farmers who are the primary exports industry we all heavily rely upon for not only farmer earned foreign exchange but for food also.
    Four rapaciously greedy foreign banks sucking us dry, nine ( That we know of.) multi-billionaire bludgers, a relatively scant few 5.2 million Kiwis on a land area 29 thousand sq km larger than the UK and we’re broke-arse fucked. Sounds like a job for a team of crowd funded forensic accountants to me. Aye Boys?

  8. 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!

      • And after commuting costs, taxes and inflation they are still 50 bucks short on everything, ditto for the beneficiary.

  9. Chippy’s not fooling me. As Minister of Ed under Ardern he was responsible for the horrors inflicted on science, maths and history education – horrors that remain in place.

    And the Maori Caucus will claim their pound of flesh after the election if LINO wins. The ethnostate agenda will be back, rebranded as “Mahi Tahi”, and they will seize their chance to bed in 3/5 Waters.

  10. The over 65’s deserve a bigger pay rise than that other was Hip kinds risks them falling into the loving arms of Winnie.

  11. 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.

  12. Like Chippy he a better communicator IMO than Cindy who look uncomfortable in the role she’ll probably be a better mother and good luck to her and whanau in the future.

  13. LABOUR we cant do this.

    ” Another week, and another post-cabinet press conference consisting of the Prime Minister reeling off a long list of policies being scrapped or pushed out past the election. Yes, they’re dumping climate change policies in a climate emergency, while betraying young people over the voting age, and ensuring hoons can continue to endanger us all on the roads. Oh, there’s a one-off benefit increase in line with inflation. Whoop di do. That’s the bare fucking minimum, and something which should happen automatically to ensure those at the bottom aren’t left behind – something Labour isn’t offering, I might add. So its just more treading water. ”

    http://norightturn.blogspot.com/2023/03/labour-we-cant-do-this.html

  14. 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.

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