Pensioners, students, and everyone on main benefits will see their payments from the Government rise by 7.22% in line with inflation from April 1.
Prime Minister Chris Hipkins announced the changes today as part of his continuing focus on "bread and butter" priorities amid what's shaping up to be a tight election year.
He added it would "mean approximately 1.4 million New Zealanders will not go backwards" as they "feel the bite from the rise in the cost of living".
The changes announced today would apply on the same day that the Government's previously-announced childcare cost-of-living package would go into effect.
The minimum wage would also be increasing on the same day next month.
Under the changes, a couple on NZ Super would receive $103 more in total a fortnight, and a single person living alone receive an extra $67 with each payment.
Other main benefits that will see an increase include Jobseeker Support, Youth Payment, Young Parent Payment, Sole Parent Support and the Supported Living Payment.
Tertiary students receiving the student allowance will also see around $20 extra for each payment. It will also apply to student loan living cost payments.
"Working families will see increases to Working for Families, including an extra $4 for Best Start Payments taking it to $69 per week and an increase of $9 for the eldest child rate of Family Tax Credit, lifting it to $136 per week," Hipkins said.
Social Development Minister Carmel Sepuloni said the $311 million change was a "practical solution to ensure those being supported didn't fall behind."
Inflation "rose by 7.22% in the year to December, while the net average wage – against which main benefits are indexed – rose by 6.24%. The extra boost to main benefits covers the 0.98% gap," she said.
"For working-age people receiving a main benefit, they will see an increase of between $19.81 and $46.20, depending on the type of benefit and whether they are single or a couple."
Today's cost of living changes follows an increase to the minimum wage and the Government’s $718 million extension of discounts to the fuel excise duty and public transport fares until June.
Last November, former prime minister Jacinda Ardern announced the Government's $189 million package to make an additional 10,000 children eligible for childcare assistance.
"All up, the additional support above the annual general adjustment equates to an extra $311 million, this is on top of the $189 million announced for the changes to Childcare Subsidy," Hipkins said on Monday.
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Q&A: Ask a question about...Online Safety
Continuing with Neighbourly's online Q&A with experts in their field, this week we are tackling online safety with Jandy Fiske from Netsafe.
Jandy Fiske has been with Netsafe for nearly 8 years. Starting on their helpline, she's now Netsafe's Community Engagement Advisor. Jandy says: 'I'm passionate about online safety because I strongly oppose bullying and want to support those affected by it.'
Jandy is passionate about protecting vulnerable communities and is promoting online safety to ensure no one falls prey to online scams. She can answer your questions about any type of online scams, and also about online harm such as online bullying.
↓ Ask your question below now and she'll be online on Wednesday, 11th September to reply to you ↓
Police are investigating after a bus driver was allegedly punched in the face and "had some teeth knocked" out in Avondale.
Police said it was alerted to the incident at about 10.17am yesterday.
"The driver received facial injuries and was transported to hospital," a spokesperson said.
"Police are making inquiries into the assault to identify those involved."
Tramways Union president Gary Froggatt said the driver was allegedly punched in the face by a passenger.
Froggatt wanted more to be done about "issues like this".
"I realise you can't have a policeman on every bus, but the drivers and the unions seem to be left out of the conversation.
"He's in hospital getting stitches put in his knee. He had his teeth knocked out," he said.
Froggatt said he got "about three or four calls like this" from drivers a month.
"I feel for the family, the drivers should be able to go to work and go home safe."
Auckland Transport said it was aware of the incident and assisting police with their investigation.
Group manager of public transport operations Rachel Cara said the bus operator was ensuring the driver has the support they need.
"We operate over 13,000 bus services every weekday and fortunately the majority of our passengers are amazing, but these isolated incidents are concerning.
"Our bus drivers work tirelessly to keep Aucklanders moving and deserve to feel safe in their place of work.
"We continue to work closely with police, other agencies and communities to improve safety on public transport."
Police urged witnesses to call 105.
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