The Green Party says the Government's $50-a-week boost for lower- and middle-income working families has failed to meet the moment amid soaring fuel costs.
A temporary boost to the in-work tax credit, unveiled earlier today by Prime Minister Christopher Luxon and Finance Minister Nicola Willis, will deliver an extra $50 a week to about 143,000 lower-income working families with children from April 7.
Willis said the timely relief was "carefully targeted to families in the squeezed middle – parents who are working hard for a living, are not eligible for main benefits, and yet have modest household incomes with which to support their children."
But Green co-leader Marama Davidson said the package fell short of the scale needed.
"The Luxon government has turned its back on hundreds of thousands of New Zealanders, asking them to foot the bill for Trump's war on Iran," she said.
"The Government showed today it is not prepared to match the scale of what people are facing and the crisis New Zealanders are dealing with."
She said surging fuel costs were "a crisis and the Government's response will do nothing for most New Zealanders.
"The situation demands far more than what was announced today."
Davidson pointed to beneficiaries, retirees and unpaid carers who won't receive a boost — outside of those on payments which were already expected to rise on April 1.
"Caregiving is work. Raising children is work. Looking after a parent or a loved one is work. These people are facing rising costs making it more difficult to care for their loved ones. This package does not count any of it."
A party spokesperson said the "Government's fuel relief package fails to meet the crisis".
Oil facilities under attack as global fuel crisis worsens. (Source: 1News)
Co-leader Chlöe Swarbrick criticised the lack of a plan to support public transport uptake or reduce fuel demand, accusing the Government of doubling down on fossil-fuel dependent infrastructure such as the LNG import facility and large motorway projects.
The Greens had proposed their own plan, including a windfall profits tax, free public transport, direct relief for everyone earning under the median income, and increased school bus services. Labour was also expected to react to the plan this afternoon.
Govt package 'carefully targeted' - Willis
Willis said the policy had been deliberately aimed at families in the "squeezed middle" who were working but had modest household incomes.
"This temporary boost will deliver support to working families who are under significant cost-of-living pressure, without making inflation worse or further driving up Government debt," she said.
The tax credit payment will rise from $97.50 to $147.50 a week, with families of four or more children receiving an extra $15 for each child after the third.
About 14,000 additional families will also become newly eligible at a reduced rate.
Willis ruled out cuts to the fuel excise duty, saying officials had advised it would send "the wrong signal" when global supply faced potential disruption of up to 20%.
The increase will last for one year, or until the price of 91 octane petrol drops below $3 a litre for four consecutive weeks.
Seymour slams Labour's Covid spending
ACT leader and deputy prime minister David Seymour welcomed the package as "sensible and proportionate", saying it avoided the kind of Covid-19 spending "blowout".
David Cunningham from Squirrel Mortgages urged people not to panic, saying markets fluctuate with global pressures. (Source: Breakfast)
"This support is targeted, time-limited, and designed to help people who must travel to get to work," Seymour said.
The policy is estimated to cost up to $373 million if it runs for the full year, funded from the Government's existing operating allowance for Budget 2026.
Willis said a warning from credit rating agency Fitch over the weekend had reinforced the need for restraint, with heavy borrowing risking a credit downgrade that could push up costs for households, businesses and the Government.
"Excessive spending more than doubled debt and sent inflation soaring and mortgage rates skyrocketing. Kiwis are still grappling with the effects of that today," she said.
Seymour said: "The previous government spent all the money, and while we are still cleaning up that mess, it limits our ability to respond to new pressures. That means any support we provide now must be disciplined, affordable, and carefully designed.
"This package has the right features. It is time limited. It has an automatic offramp. It is funded from within the spending allowance. And it will be paid for with savings elsewhere, not by spraying more borrowed money into the economy.
"New Zealanders expect the Government to respond when costs bite, but they also expect us to do it responsibly. This support strikes that balance."
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