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Govt's Budget Balanced On The Backs Of Low-Income Families
Govt's Budget Balanced On The Backs Of Low-Income Families

Scoop

time5 days ago

  • Politics
  • Scoop

Govt's Budget Balanced On The Backs Of Low-Income Families

Press Release – Green Party Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato, says Ricardo Menndez March. The Government is quietly leaving some of our poorest families hundreds of dollars worse off, ignoring warnings that changes to the accommodation supplement and public housing subsidies will disproportionately target disabled, older, Māori, Pasifika, and young people. 'This is a stealth cut, pushed through with no acknowledgement of the harm it will cause,' says the Green Party's spokesperson for Housing, Ricardo Menéndez March. 'Housing is a human right. We can build an Aotearoa in which everyone has what they need, and nobody is left behind. 'Instead, the Government hoped we wouldn't notice that, hidden under headlines about KiwiSaver and Best Start changes, lies a major policy shift that will leave 13,200 families worse off by $100, even up to $200 per week*. 'Changes to how the Accommodation Supplement is calculated means that income from boarders–which previously were partially exempt because the Ministry of Social Development (MSD) understood these boarders were often family members–now fully counts against eligibility. 'MSD flagged early on that increased hardship was expected to be experienced by disabled people, young people, older New Zealanders and Māori and Pasifika peoples. 'People who receive the accommodation supplement, by definition, already have unaffordable rents. $100 or $200 a week may not feel much for a Prime Minister out of touch with reality, but for thousands of families it's a lifeline that allows them to keep a roof over their head, put food on the table and pay their bills. 'MSD also noted that any 'savings' were likely overstated**, as costs were simply going to be shifted to emergency housing and hardship grants. 'Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato,' says Ricardo Menéndez March. Notes: *An estimated 13,200 households will be affected (7,000 on accommodation supplement, 6,200 on public housing subsidies). On average, the 7,000 households with boarders receiving the Accommodation Supplement will be $100/week worse off, and people with 3 boarders would be $202/week worse off. Affected households receiving public housing subsidies would see an average increase of $132/week to the cost of their rent. (Page 21 of the report) **The Government is saving $150m over four years by stripping support (Accommodation Supplement + Income Related Rent Subsidy) from around 13,200 households who have boarders. MSD has told the Government that the savings are likely to be overestimated (page 7 and bottom of page 15 of the report). This is due to people needing hardship assistance, emergency housing, etc as a result of these changes creating costs for other parts of the system.

Govt's Budget Balanced On The Backs Of Low-Income Families
Govt's Budget Balanced On The Backs Of Low-Income Families

Scoop

time5 days ago

  • Politics
  • Scoop

Govt's Budget Balanced On The Backs Of Low-Income Families

Press Release – Green Party Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato, says Ricardo Menndez March. The Government is quietly leaving some of our poorest families hundreds of dollars worse off, ignoring warnings that changes to the accommodation supplement and public housing subsidies will disproportionately target disabled, older, Māori, Pasifika, and young people. 'This is a stealth cut, pushed through with no acknowledgement of the harm it will cause,' says the Green Party's spokesperson for Housing, Ricardo Menéndez March. 'Housing is a human right. We can build an Aotearoa in which everyone has what they need, and nobody is left behind. 'Instead, the Government hoped we wouldn't notice that, hidden under headlines about KiwiSaver and Best Start changes, lies a major policy shift that will leave 13,200 families worse off by $100, even up to $200 per week*. 'Changes to how the Accommodation Supplement is calculated means that income from boarders–which previously were partially exempt because the Ministry of Social Development (MSD) understood these boarders were often family members–now fully counts against eligibility. 'MSD flagged early on that increased hardship was expected to be experienced by disabled people, young people, older New Zealanders and Māori and Pasifika peoples. 'People who receive the accommodation supplement, by definition, already have unaffordable rents. $100 or $200 a week may not feel much for a Prime Minister out of touch with reality, but for thousands of families it's a lifeline that allows them to keep a roof over their head, put food on the table and pay their bills. 'MSD also noted that any 'savings' were likely overstated**, as costs were simply going to be shifted to emergency housing and hardship grants. 'Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato,' says Ricardo Menéndez March. Notes: *An estimated 13,200 households will be affected (7,000 on accommodation supplement, 6,200 on public housing subsidies). On average, the 7,000 households with boarders receiving the Accommodation Supplement will be $100/week worse off, and people with 3 boarders would be $202/week worse off. Affected households receiving public housing subsidies would see an average increase of $132/week to the cost of their rent. (Page 21 of the report) **The Government is saving $150m over four years by stripping support (Accommodation Supplement + Income Related Rent Subsidy) from around 13,200 households who have boarders. MSD has told the Government that the savings are likely to be overestimated (page 7 and bottom of page 15 of the report). This is due to people needing hardship assistance, emergency housing, etc as a result of these changes creating costs for other parts of the system.

Govt's Budget Balanced On The Backs Of Low-Income Families
Govt's Budget Balanced On The Backs Of Low-Income Families

Scoop

time5 days ago

  • Politics
  • Scoop

Govt's Budget Balanced On The Backs Of Low-Income Families

The Government is quietly leaving some of our poorest families hundreds of dollars worse off, ignoring warnings that changes to the accommodation supplement and public housing subsidies will disproportionately target disabled, older, Māori, Pasifika, and young people. 'This is a stealth cut, pushed through with no acknowledgement of the harm it will cause,' says the Green Party's spokesperson for Housing, Ricardo Menéndez March. 'Housing is a human right. We can build an Aotearoa in which everyone has what they need, and nobody is left behind. 'Instead, the Government hoped we wouldn't notice that, hidden under headlines about KiwiSaver and Best Start changes, lies a major policy shift that will leave 13,200 families worse off by $100, even up to $200 per week*. 'Changes to how the Accommodation Supplement is calculated means that income from boarders–which previously were partially exempt because the Ministry of Social Development (MSD) understood these boarders were often family members–now fully counts against eligibility. 'MSD flagged early on that increased hardship was expected to be experienced by disabled people, young people, older New Zealanders and Māori and Pasifika peoples. 'People who receive the accommodation supplement, by definition, already have unaffordable rents. $100 or $200 a week may not feel much for a Prime Minister out of touch with reality, but for thousands of families it's a lifeline that allows them to keep a roof over their head, put food on the table and pay their bills. 'MSD also noted that any 'savings' were likely overstated**, as costs were simply going to be shifted to emergency housing and hardship grants. 'Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato,' says Ricardo Menéndez March. Notes: *An estimated 13,200 households will be affected (7,000 on accommodation supplement, 6,200 on public housing subsidies). On average, the 7,000 households with boarders receiving the Accommodation Supplement will be $100/week worse off, and people with 3 boarders would be $202/week worse off. Affected households receiving public housing subsidies would see an average increase of $132/week to the cost of their rent. (Page 21 of the report) **The Government is saving $150m over four years by stripping support (Accommodation Supplement + Income Related Rent Subsidy) from around 13,200 households who have boarders. MSD has told the Government that the savings are likely to be overestimated (page 7 and bottom of page 15 of the report). This is due to people needing hardship assistance, emergency housing, etc as a result of these changes creating costs for other parts of the system.

Budget Fails To Support Costs Of Social Service Delivery
Budget Fails To Support Costs Of Social Service Delivery

Scoop

time22-05-2025

  • Business
  • Scoop

Budget Fails To Support Costs Of Social Service Delivery

Press Release – Presbyterian Support Northern We would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. Presbyterian Support Northern (PSN) welcomes some of the new investment announcements in today's Budget 2025, but is concerned about rising costs for social service providers. 'PSN is pleased to see updates to the Accommodation Supplement boundaries, Working for Families abatement threshold increases, and continued food bank funding,' says PSN CEO Shaun Greaves. 'However, we would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. 'In the case of PSN, we have seen a consistent year on year reduction in Government funding in real terms, and each year this reduction in support impacts the level of services we can undertake for our clients. 'While we acknowledge that the Government needs to reduce costs, spending restraint should not be at a cost to social service organisations who take up the responsibility of caring for vulnerable New Zealanders hardest hit by a faltering economy.' Greaves says the Government's launch of the Social Investment Fund last week was an encouraging sign, but it's equally important to invest in ensuring organisations are able to continue delivering on existing social service contracts. 'One of our concerns from Budget 2025 is the lack of support for community providers in delivering the increases in Kiwisaver employer contributions. 'This is an extra cost, which although is good for our employees, will take money away from our frontline service delivery.' While Greaves acknowledges the Budget 2025 investment in overhauling the way emergency services respond to 111 mental health call outs, he says it falls short of supporting critical services like Lifeline, a major mental health helpline. 'Lifeline is an important national suicide and mental health helpline delivered by PSN,' he says. We receive nearly 90,000 calls and 240,000 texts a year, but receive no Government funding. We would have liked to see more in the budget to support Lifeline as we're often the first point of call for people in mental distress.' Greaves says that while the increase in the abatement threshold for Working for Families will help more families, the downside is that the first year of the Best Start payment will be income tested. 'This is a concern for us as it's critical for first time parents to have that extra payment to help them give their child the best possible start in life. 'At PSN, we deliver many Government contracts across a wide range of social services, as well as disability support and aged care services. 'Budget 2025 is a missed opportunity to truly support children and families doing it tough, and invest in a better future for our country. 'As a valued partner (with 140 years of service) PSN will continue to work constructively with government and communities to deliver impactful, value-for-money solutions to the issues our country is grappling with.'

Budget Fails To Support Costs Of Social Service Delivery
Budget Fails To Support Costs Of Social Service Delivery

Scoop

time22-05-2025

  • Business
  • Scoop

Budget Fails To Support Costs Of Social Service Delivery

Press Release – Presbyterian Support Northern We would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. Presbyterian Support Northern (PSN) welcomes some of the new investment announcements in today's Budget 2025, but is concerned about rising costs for social service providers. 'PSN is pleased to see updates to the Accommodation Supplement boundaries, Working for Families abatement threshold increases, and continued food bank funding,' says PSN CEO Shaun Greaves. 'However, we would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. 'In the case of PSN, we have seen a consistent year on year reduction in Government funding in real terms, and each year this reduction in support impacts the level of services we can undertake for our clients. 'While we acknowledge that the Government needs to reduce costs, spending restraint should not be at a cost to social service organisations who take up the responsibility of caring for vulnerable New Zealanders hardest hit by a faltering economy.' Greaves says the Government's launch of the Social Investment Fund last week was an encouraging sign, but it's equally important to invest in ensuring organisations are able to continue delivering on existing social service contracts. 'One of our concerns from Budget 2025 is the lack of support for community providers in delivering the increases in Kiwisaver employer contributions. 'This is an extra cost, which although is good for our employees, will take money away from our frontline service delivery.' While Greaves acknowledges the Budget 2025 investment in overhauling the way emergency services respond to 111 mental health call outs, he says it falls short of supporting critical services like Lifeline, a major mental health helpline. 'Lifeline is an important national suicide and mental health helpline delivered by PSN,' he says. We receive nearly 90,000 calls and 240,000 texts a year, but receive no Government funding. We would have liked to see more in the budget to support Lifeline as we're often the first point of call for people in mental distress.' Greaves says that while the increase in the abatement threshold for Working for Families will help more families, the downside is that the first year of the Best Start payment will be income tested. 'This is a concern for us as it's critical for first time parents to have that extra payment to help them give their child the best possible start in life. 'At PSN, we deliver many Government contracts across a wide range of social services, as well as disability support and aged care services. 'Budget 2025 is a missed opportunity to truly support children and families doing it tough, and invest in a better future for our country. 'As a valued partner (with 140 years of service) PSN will continue to work constructively with government and communities to deliver impactful, value-for-money solutions to the issues our country is grappling with.'

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