Social Development Minister Carmel Sepuloni says the Government to a "courageous step" in increasing benefit payments in this year's Budget.
Sepuloni told Breakfast it was a “historical moment, the fact that we increased benefits to the extent that we did - the biggest shift, I think, since the 1940s”.
As part of Budget 2021, Finance Minister Grant Robertson yesterday announced increases in benefits for families with children ranging from $36 to $55 per week.
All benefits will get a $20 per week top up from July. A further boost is expected in April 2022, in line with the Welfare Advisory Group recommendations.
From April 1 next year, adults with children will also receive an additional $15 a week each.
Sepuloni said the increase will “make a difference to the families that are on the benefit and that’s the most important thing”.
She added that she had expected critics to call on the Government to go further.
“We are politicians, we are in Government and until that day comes where we don’t have an issue with child poverty, then I expect people to continue to do that,” she said.
Sepuloni also explained the decision for a further boost in the benefit to be spread out over two years.
“Usually, when you make a decision like this, it would be on the 1st of April that that change would come into place. What we’ve done is we’ve brought part of it forward so the $20 on the 1st of July and the rest will be on the 1st of April.
“There are differential shifts here as well so that also gives officials just some time to make that work for the 1st of April but we’ve wanted to do something immediately, hence why we brought it forward $20.”
The 2021 Budget increases are getting a big thumbs up from the front lines. (Source: Other)
She said while some questioned why it took two years to implement the recommendations made in the welfare Expert Advisory Report, the Government has made a number of “significant” actions over the years, including “indexing main benefits to wages” and “the investment into upskilling and training and employment".
“Some may have said that there could have been a different starting point but I stand by the decisions that we’ve made.
“Now, we’re in a position where we were ready to do the bigger benefit increases. Was it difficult? There are always political decisions to make about where you make investments but morally, our team ... we all backed this.”
Sepuloni said while there are concerns Budget 2021 doesn't go far enough to raise all children out of poverty, there are "a number of things where I’m continuing to get policy advice and we will continue to make decisions over the course of the next few years".
"It’s a sense of relief that I feel that we were able to get the benefit increases over the line at this Budget and at the same time, there’s more to do."
She expressed pride over the Budget and the Government’s decision to make the “courageous step to not just tinker with the benefit increases but [to go] the full way and responded to the Welfare Expert Advisory Group’s recommendations".
"We even went beyond that ... for beneficiaries with children and I’m proud that we took the courageous step to do that.
"We still know there’s more to do and we’re committed to doing that."
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