The Budget boosts Pacific aid but fails vulnerable families: opposition parties

Labour says Budget 2026 fails families struggling with rising costs, despite the Government increasing support for Pacific nations.

Finance Minister Nicola Willis has delivered what she describes as a “responsible Budget” aimed at securing New Zealand’s future, promising more investment in health, education, and frontline services.

But Labour finance spokesperson Barbara Edmonds says the Budget is the Government’s last chance to show it has a plan to make life better for New Zealanders.

“This Budget takes no action to help with rising costs. Families are choosing between expensive food and expensive fuel, tapping into their retirement savings just to stay afloat now,” Edmonds says.

She says the Government’s choices will hit vulnerable households including social housing tenants who will pay more towards their rent.

“This Budget hikes rents for 84,000 social housing households by an average of $31 a week, taking money from the most vulnerable New Zealanders.”

Labour Finance spokesperson Barbara Edmonds says families are choosing between expensive food, expensive fuel and tapping into their retirement savings just to stay afloat. Photo/Supplied

The Budget includes $110 million to increase development and humanitarian assistance in the Pacific and Indo-Pacific regions.

This sits alongside separate funding boosts for national security and international operations, including a $156 million uplift for intelligence services and $145 million for New Zealand’s offshore diplomatic network.

However, Labour says domestic reductions, including planned cuts of up to 9000 public service jobs, will hurt families and regional economies.

Green Party Spokesperson for Pacific Peoples Teanau Tuiono says it's a "heartless Budget that continues to punish Pasifika people". Photo/Supplied.

Labour leader Chris Hipkins says the Government has chosen to “cut jobs, raise rents and axe services that help seniors, families, and young people,” claiming 80,000 households will be worse off under the coalition’s housing policies.

Green Party Spokesperson for Pacific Peoples, Teanau Tuiono, says the Budget prioritises the super-rich and powerful over Pasifika people.

“This is a heartless Budget that continues to punish Pasifika peoples. At a time when Aotearoa has more kids in poverty, more people are homeless, and more people without work, it is Pasifika people who are suffering the most," he says.

“The Ministry for Pacific Peoples, which the Coalition parties have used as a political football for years, is facing close to $3 million in funding cuts. That is close to $3 million in funding cuts to initiatives that directly relate to our Pasifika wellbeing.

“Pasifika initiatives and communities have again lost out to big money and big influence in Budget 2026," he says.

Greens Co-leader Chlöe Swarbrick says the Budget leaves New Zealanders fending for themselves, as the Government has “no hope, no plan, no ambition and no vision”.

Finance Minister Nicola Willis presents Budget 2026 in Parliament.

Willis says while many New Zealanders are still doing it tough, the country must reduce debt, return to surplus, and prepare for future shocks.

For families, one key cost-of-living measure is a temporary $50-a-week increase to the in-work tax credit.

The Government says it will support up to 157,000 low-to-middle-income working families as households deal with higher fuel costs linked to conflict in the Middle East.

The Budget also includes funding to help keep public transport services running, a temporary 30 per cent increase in mileage rates for home and community support workers, and support for people travelling for specialist treatment.

Health receives the largest single investment, with $5.5 billion in additional funding for frontline services.

The Government says this will help increase specialist assessments, boost elective surgery, increase cancer treatments and support more GP visits.

Labour leader Chris Hipkins says the Government has chosen to “cut jobs, raise rents and axe services that help seniors, families, and young people”. Photo/Supplied.

In education, Budget 2026 provides a $1.6 billion boost for schooling and early childhood education.

The Healthy School Lunch Programme will continue in 2027, while Trades Academy places will double from 10,000 to 20,000.

But the Budget also ends the final-year Fees Free scheme for tertiary students.

Housing support is also being reshaped. Social housing tenants will pay 30 per cent of their income towards rent, up from 25 per cent, while maximum Accommodation Supplement rates will increase for lower-income private renters.

Willis says the Government’s approach will make the country more secure.

She says the Government wants New Zealanders to see the Budget as focused on their everyday needs and concerns.