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RNZ News
3 days ago
- Business
- RNZ News
MSD to monitor whether stricter rules for accommodation supplement push people into hardship
Social Development Minister Louise Upston. Photo: VNP / Phil Smith The Ministry of Social Development (MSD) will assess requests for hardship assistance to determine whether new, stricter rules for the accommodation supplement are pushing people to seek help elsewhere. From 2 March next year, payments from all boarders will be included in income assessments to determine whether people qualify for accommodation supplements or temporary additional support, and to calculate how much income-related rent people pay in public housing. At the moment, board payments are only included in this calculation when people have three or more boarders, or when it is their main source of income. Work and Income said that could mean people were paid less in housing subsidies or paid higher income-related rents. A spokesperson for MSD said because the policy change would mean a decrease in the rate of assistance received by some people, there could be an increase in applications for other hardship and housing supports. In earlier analysis, it had suggested that the $150 million the government expected to save over four years could be overstated because of this. "We cannot predict how many people will access hardship assistance and housing support products as a result of the change. As part of internal reporting for this initiative, MSD will monitor hardship assistance to see if it is increasing more than forecasted prior to this change. "If MSD identifies significant changes that may require further investigation (such as significant increases in hardship assistance, above what had been forecasted), MSD will investigate those further and provide advice to ministers." It has been estimated that about 13,200 households with boarders will be affected. Ricardo Mendendez-March, Green Party spokesperson for social development, said people who were receiving the accommodation supplement were already facing unaffordable rents. He said the government had not adequately communicated the impact of the bill. "Poverty is a political choice and this government has chosen to leave thousands of low-income families considerably worse off. The changes to the accommodation supplement are unjustified, particularly in a cost of living crisis. The government is trying to pay for their tax cuts by pushing low-income families into debt or to Work and Income to ask for hardship grants to survive. "Being $100 worse off each week may not mean much to wealthy government ministers, but for many families it's the difference between making ends meet or having to access a foodbank. We know that more families will end up needing to access hardship support because of this bill, putting pressure on families and other parts of the system that are already struggling to keep with the growing material hardship families are experiencing." Social Development Minister Louise Upston said there are various forms of assistance that are available to clients who need help with their housing and living costs and who meet the eligibility criteria. "This assistance will continue to be available to those people who are eligible, after 2 March 2026," she said. The minister acknowledges the changes could be unsettling but said they were necessary to make the system more consistent. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
31-05-2025
- Business
- NZ Herald
Emergency funds: How much is enough in 2025?
It might sound like a luxury, but it's one of the best tools for surviving in a world where price rises are outpacing wage growth and jobs are less secure. Even in 2025, with easy access to credit such as buy-now-pay-later and support from Work and Income and the community, having your own emergency fund still makes financial sense. All sorts of curveballs can derail us. Think: accident, ill health, business failure, and relationship breakdown, to name a few. The magic number of how much to save in an emergency fund is three to six months of living expenses. That might seem like a pipe dream for some. However, people who focus on the goal find a way to get there. There's a common myth: 'I can't afford to save'. In truth, it's the opposite; we can't afford not to. Get started with a few powerful personal finance tricks. The first is to track spending to free up money for savings. Set up small, achievable goals, such as the first $40 by the end of this month. Automate savings at the beginning of the month. Where possible, look for additional income such as a small side hustle. Get quick wins on the board. If you replace eggs on toast or leftovers instead of, say, $25 on takeaways, chuck the $15-plus into your emergency fund. Deleting UberEats can free up considerable cash. Any amount, even $5 or $10 a week, is worth adding to the fund. Start by saving just enough to cover one week of expenses. That alone gives you breathing room to pay a single unexpected bill or to help out whānau in a true emergency. But remember, the fund is for emergencies, not for everyday spending. So keep the money in a separate savings account that isn't linked to your Eftpos or debit card. If you're serious about building an emergency fund, beware of mistaking everyday spending for emergencies. That's confusing needs and wants. An emergency fund is not another Eftpos account to dip into. Nor is it for planned expenses such as holidays. It's meant to be a financial buffer. This is the time to scrutinise every dollar and ask honestly: is it a need or a want? A great place to start is the supermarket, where lateral thinking can reduce the bill considerably. Not everything on supermarket shelves is a need. I told a friend who was in the process of transitioning to a single income how I work on $3 per plate for protein as a rule, thanks to the Love Food Hate Waste campaign. It works. The concept left her a bit speechless. Also be aware that some personalities lurch from one crisis to the next. If that sounds familiar, then consider getting third party help. A good place to start is a budgeting centre or Citizens Advice Bureau, which can refer you to more specialised assistance if you need it. Sometimes the issue sits in our psychological make-up, not our budgeting skills. An emergency fund works best tied into a bigger financial plan. Goal Planner and Budget Planner can be helpful. Everyone's brain works differently, and for some people, a budgeting app such as PocketSmith or Westpac's CashNav app might work better. For others, a simple spreadsheet is the answer. I gave Gemini, Google's AI engine, some realistic figures of what someone might earn and spend on rent each month in New Zealand, and asked it to create a personal financial plan. I couldn't fault anything it said. I then asked Gemini to put its recommendations into a spreadsheet. It didn't give me a spreadsheet, but it did go into great depth explaining how to set one up, including all the formulas and the exact cells to copy them into. Finally, think of your emergency fund as an act of self-care and empowerment. Start small. Stay consistent. Your future self will thank you.
NZ Herald
19-05-2025
- NZ Herald
Meth, booze and psychedelic drugs: Auckland arsonist Corena Flavell jailed torching Parnell lodge
She faced up to 14 years imprisonment as she appeared in Auckland District Court today for sentencing. Judge David Sharp ordered a sentence of two-and-a-half years imprisonment, noting she appeared genuinely apologetic but there was also a high risk of reoffending due to her entrenched drug and alcohol issues. 'I have to impose a sentence that will mean you know you can't do things like this,' the judge said. 'It is a matter of great fortune that no one was killed. 'These people were doing you no harm.' Meth and psychedelics Flavell was a long-term resident at the 17-bedroom lodge, which changed from a tourist stay to emergency accommodation around 2022 and later switched to transitional accommodation. The defendant lived in one of nine bedrooms on the upper floor of the two-storey wooden home. The agreed summary of facts for the case don't state what caused her to carry out the arson, but defence lawyer Charles Harvey told the judge today that she had been a heavy user at the time of methamphetamine, alcohol and psychedelic drug DMT. It was a combination that has affected her memory of that night and her ability at the time to make 'rational and safe decision', he said, adding that it is difficult to imagine her actions were not significantly impaired. The summary of facts states about 4.09pm that day, Flavell began removing property from her room and placing it on a settee 'directly outside her room in preparation to leave the building'. Eighteen minutes later she had gotten dressed, finished removing the property and was preparing to leave. She held a cigarette lighter in her hand. 'After Ms Flavell had removed the items of property from her room, she spread a flammable accelerant onto items remaining in the room and then set the items on fire before hurriedly leaving,' documents state. 'Ms Flavell picked up the items from the settee, but she was in such a rush to leave the building that she did not stop to pick up one of the items that she had dropped and she left other items behind. 'Just over one minute after Ms Flavell rushed from her room, smoke could be seen emanating out of her room.' There were up to 10 residents inside the building when she set the fire, including one who was sleeping in a room adjacent to Flavell's. All managed to escape but some were injured, the judge noted today, referring to victim impact statements that were not read aloud. The blaze had been set close to a door to a fire escape. Additionally, the building had no sprinkler system and few extinguishers, police noted. Fellow resident Benjamin Rees, who said he was homeless before Work and Income sent him to live at the property, described to RNZ last year how he had been napping when he awoke to a voice on the stairwell saying 'set fire to the place' and noticed smoke seeping in through his door. 'So I grabbed a couple of items,' he said. 'I grabbed my guitar and a couple of bags, threw them out the window, jumped onto that [roof], threw my stuff into the tree, jumped into the tree and onto the ground.' Sixteen fire crews were called to the scene, but although they eventually got the fire under control, it was to no avail. The extensively damaged property was later demolished. 'Harmful influences' Flavell pleaded guilty to arson, which carries a maximum possible sentence of 14 years imprisonment, five days prior to her scheduled trial earlier this year. She also pleaded guilty to an unrelated theft charge in which she helped take an estimated $7000 worth of items that had been in bags in front of a home. Most of the items were never recovered. Both sides agreed a starting point of between three-and-a-half and four years imprisonment was appropriate. The defence argued that the judge should take into account that the building was old and didn't have sprinklers, which would have likely limited the damage. Harvey noted that the one silver lining of the incident is that his client is 'now quite cognisant of the tangible impact' her addiction issues have had on her life and 'her motivation to find an alternative path in life has crystallised'. He described the sentencing as 'a turning point, hopefully, for her and her lifestyle'. The judge agreed that her addiction issues had a direct impact on her offending that day. He declined to go into detail but also agreed that her background, including exposure to drugs and alcohol at a young age, would have likely played a part in her later addictions. 'It's not difficult to tell she's had some influences in her life that have been difficult and very harmful for her,' he said. 'But it still doesn't mean that you can do this sort of thing.' Crown prosecutor Annabelle Wilson acknowledged the futility of having Flavell pay back her victims. But she asked that he impose a nominal amount, if only out of symbolism 'to reflect the loss to the victims'. The judge reluctantly declined. 'I'm in the unfortunate position of not being able to provide reparation to people who lost significantly,' Judge Sharp said, explaining that there was no way Flavell would have the means to repay. Advertise with NZME. 'The amount is too great.' The judge ordered a starting point of four years imprisonment, reflecting the fact there were others in the lodge who were put in danger. He increased the sentence by two months for the theft but then allowed reductions of five months for her guilty pleas, nine months for the role addiction played in her offending, two months for remorse and four months for what he described as culturally significant factors. He noted that the defendant's risk of re-offending will be reduced if she gets a handle on her addictions. 'You will be in front of the Parole Board,' he advised the defendant. 'Hopefully, you can learn from the things that are in the [culture and background report] to avoid any further repetition of behaviours as dangerous as this.' Neighbours concerned The lodge was owned by couple Suresh and Seema Chatly, who own multiple motels throughout Auckland. They had received more than $22 million in emergency housing grants at the time of the fire, the Herald previously reported. Suresh Chatly previously said they changed strategy from tourist accommodation to emergency housing during the Covid-19 pandemic. 'It was more of a survival to pay the mortgage,' he said of the decision. It didn't come without some controversy in the neighbourhood. One neighbour told the Herald last year that she had received threats and witnessed dangerous behaviour. For the past year, she said, she had complained to the owners 'about three times a week'. Neither the owners nor any of the former tenants attended today's hearing. The courtroom gallery was mostly empty except for Flavell's father and the media.
Scoop
15-05-2025
- General
- Scoop
Left Behind – The Transport Breakdown Facing Abuse Survivors (Part 2)
With less than a week to go until the Christchurch Whare Tapu Wānanga – a national gathering for survivors of abuse in state care – Many were abused as children under the Ministry of Social Development (MSD) and it has still not confirmed consistent or adequate travel support for those who need it most. For many, the chance to attend a healing event rests entirely on being able to get there. But MSD's ongoing failure to coordinate, communicate, or show up is creating fresh harm. Some survivors have received no response at all. Others are told that travel support is only available if their claim is still "open," despite the fact that the trauma they carry never closed. And in some cases, survivors have been offered travel payments so low they feel insulting – such as $10 each way for multi-hour round trips, or $100 to get from Auckland to Christchurch. "What message does that send? That our healing is only worth a couple of dollars?" asks Karl Tauri, spokesperson for NZCAST – the New Zealand Collective of Abused in State Care. "We're hearing from survivors who are crying, panicking, unsure whether they'll be able to come. They're retraumatised not by the past, but by this system that makes them beg for basic support." MSD's Historic Claims team has also confirmed they will not be attending the Christchurch wānanga, citing unspecified commitments. Work and Income (WINZ) in Christchurch gave the same response. This comes despite MSD having attended similar wānanga in Wellington and Palmerston North, where survivor turnout was high and agency engagement proved vital. Christchurch alone has multiple Work and Income offices and hundreds of MSD staff. And yet, survivors there are being told no one is available. "Why is Christchurch different? Why do survivors in one city get face-to-face support and others don't?" says Tauri. The absence is more than just poor logistics. It reinforces what many survivors already feel: that their healing is not a priority. That after everything, they are still on their own. NZCAST is calling for immediate, consistent national policy from MSD that ensures: Travel support is clearly communicated and accessible to all survivors, regardless of claim status No survivor is forced to cover costs upfront or accept unreasonably low offers Staff from Historic Claims and Work and Income are present at all major survivor-led wānanga "This isn't charity," says Tauri. "This is redress. Real redress means turning up, following through, and making sure survivors have the means to heal. If MSD can't even get people to the marae, then what are they really offering?"
RNZ News
07-05-2025
- General
- RNZ News
50 firefighters battle blaze at WINZ office as smoke billows over Auckland's Glen Innes
Photo: Pretoria Gordon / RNZ About 50 firefighters are battling a blaze that is sending smoke over the Auckland suburb of Glen Innes. Crews were called to Mayfair Place at about 7am. RNZ understands the building is a Work and Income office. The public is being urged to keep windows and doors closed if they're concerned by the smoke. Police are warning drivers to expect delays, with Mayfair Place cordoned off. "Taniwha Street and Apirana Avenue are currently closed although motorists can still use the roundabout." There had been no reports of injuries and the fire was contained, police said. Fire and Emergency says 12 trucks have been sent to the fire. More to come...
