Morning Briefing May 21: The Budget's big lift for benefits

May 21, 2021
Jacinda Ardern and Grant Robertson

It’s a Budget bonanza today as we look at the winners and losers from the Government’s spending plans. 

Around 370,000 Kiwis will soon get a "little bit extra" in their pockets with the Government revealing “the biggest lift in a generation” to benefits in yesterday’s Budget.

Benefits will increase between $32 and $55 per person per week from next April, including a $20 a week boost for all beneficiaries beginning in six weeks.

The Government is also heralding its billion-dollar Budget allocation for Māori , which includes funding for housing, health, and education.

The full Budget document can be found here , but for those of you with a little less time on your hands, 1 NEWS reporter Anna Whyte has wrapped up its main points here

Prime Minister Jacinda Ardern told the House yesterday she’s proud of the Budget and its focus of “leaving no one behind”.

But National leader Judith Collins criticised the Budget’s priorities, saying they spoke to Labour’s “inability to deliver” for middle New Zealand . ACT’s David Seymour agreed, saying the “La La Budget” has nothing for “people who work for their money”.

1 NEWS political editor Jessica Mutch McKay yesterday summed up Budget 2021 as the “Benefit Budget” , while Stuff political editor Luke Malpass branded it “a big middle finger to the National Party and its 1990s legacy of both Budget cuts and its defenestration of trade union power”.

Newsroom’s Jo Moir says Ardern will be banking on middle New Zealand “siding with her on doing right by kids”, while the NZ Herald’s Audrey Young says the Government has picked the right time to increase benefits, saying the move now has wider political buy-in. 

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ACC-style scheme for unemployed

Alongside those benefit boosts, extra support is also on the way for Kiwis who lose their jobs.

The Government has revealed an ACC-style unemployment scheme to deliver an extra buffer in an increasingly uncertain job market.

The scheme will provide those who lose their jobs with up to 80 per cent of their income while they look for new employment or upskill.

The Government can't yet say how the scheme will work or how much it will cost, with Grant Robertson labelling it a “work in progress”. It’s due to be implemented in 2023. 

Pharmac funding disappoints

The Government also revealed its health spending plans yesterday, with the $4.7 billion increase in health funding over the next four years including a projected half billion dollars just to begin the massive overhaul of the country’s health system. 

Pharmac is also getting an extra $200 million a year, falling well short of the $1 billion campaigners had been seeking to improve access to drugs for those who need them.

Malcolm Mulholland from Patient Voice Aotearoa told the Finance Minister to “have a bloody heart” yesterday, saying those waiting for life-saving medicines to be funded are losing hope.

He says many families he advocates for are now making the decision to leave New Zealand to get the treatment they need.

Epilepsy drug findings released

The debate over the funding of medicines comes as Pharmac admits it didn’t properly inform epilepsy patients of a drug brand change in 2019.

Six people died over a three-year period after the drug buying agency switched patients to a new brand of anti-seizure medication, Logem.

Chief Coroner Deborah Marshall released her findings into the deaths today , saying evidence doesn't clearly link the brand change to the deaths. But, she says, the leaflets Pharmac gave out to patients didn't contain enough information about the change. 

Pharmac has apologised to the affected families and says it's critical people prescribed the new brand of drug continue to take it.

However, families and patient advocates have told RNZ they’re “heartbroken”, “scared”, and “angry” following the coroner’s report. 

Reports Gaza truce close

Israel's security cabinet is meeting amid reports a ceasefire deal with Hamas has been reached to end the current violence in Gaza.

However, attacks in the region continued as those diplomatic efforts stepped up. With the conflict entering its 11th day, the death toll in Gaza has risen to more than 230, including 65 children. 

Meanwhile, the Wellington Phoenix is “respectfully” asking fans to not bring national flags to home games later this month. The request follows Israeli striker Tomer Hemed’s controversial goal celebrations over the weekend.

Beleaguered CEO quits

The Maritime Union says the resignation of the Ports of Auckland chief executive is the "right outcome".

Tony Gibson announced yesterday he will step down from the role in June . His resignation comes nearly two months after a scathing report into health and safety at the port.

Auckland Mayor Phil Goff says he’s looking forward to the appointment of a new CEO. 

Other news of note this morning:

- Tackling climate change was another key focus of yesterday’s Budget – but spending in that area has disappointed some

- The Budget has also set aside around $6.6 million over the next four years to keep the Christchurch mosque shooter locked up

- Treasury is forecasting house prices to go up by just 0.9 per cent for the year ending June 2022 — compared to a 17.3 per cent annual average change for the 2021 period. 

- Health officials continue to urge Kiwis with coronavirus symptoms to get tested after more weak positive results were detected in wastewater in Wellington, Christchurch, Rotorua and Queenstown.

- One victim from last week’s knife attack at a Dunedin supermarket remains in hospital after two others were discharged from Dunedin Hospital this week.

- The BBC’s 1995 interview with Princess Diana was secured using deceitful behaviour , according to an official inquiry.

- Six60 frontman Matiu Walters and fiancée Caren Freeman have welcomed their first child , while Kiwi actor and Riverdale star KJ Apa has revealed he’s also set to become a father .

- And the Bay of Plenty has been dethroned as the sunniest place in the country – so where has all the sunshine gone this year?

And finally...

Antarctica made an appearance in yesterday’s Budget, with the Government allocating funding for a major redevelopment of Scott Base .

Their plans for the frozen continent are expected to create 170 jobs during the peak of construction and 700 jobs in total over six years.

As luck would have it, Re: was talking to one of those already working at Scott Base yesterday – chef Tom Thorpe.

He discusses the logistics of living and working in an environment where it can reach -40C outside and answers the question - do you need a freezer in Antarctica?

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