$50 boost ‘won’t reach’ many Pacific families

The government has announced a temporary boost for low-to-middle-income working families with children as households face rising fuel, food, and everyday costs.

From 7 April, about 143,000 will get the extra $50 a week through the in-work tax credit.

The payment will last up to one year or until the price of 91 octane petrol drops below $3 a litre for four straight weeks.

Most eligible households will not need to apply. Payments will be made automatically through Inland Revenue, starting from 7 April for weekly recipients and 14 April for those paid fortnightly.

But Green MP Teanau Tuiono says the support is too limited and risks leaving behind those already struggling.

“It won’t reach Pacific families. It’s just not enough, it’s not going to do it,” Tuiono told PMN News. “We announced earlier about what we should be doing. Providing free public transport and having relief packages which actually takes care of people.”

Green MP Teanau Tuiono. Photo/Supplied

Pacific households are already among the most financially stretched in Aotearoa New Zealand, with the highest unemployment rates and nearly one in three Pacific children living in material hardship, which is about double the national average.

Ana Ika, Salvation Army’s Social Policy Analyst, says rising fuel prices are already hitting Pacific families hard, especially those who rely on driving to work.

“It has a ripple effect into other areas such as housing, such as food, which we’re primarily seeing at the moment,” Ika told Pacific Mornings.

Watch Ana Ika's full interview below.

She says many Pacific families are already struggling despite being employed.

“Even with a lot of Pacific families that are coming through that are employed or that do have two incomes… that is still requiring need despite being employed.”

Finance Minister Nicola Willis says the government is aware of the pressure households are under, driven by global instability and fuel supply issues.

But she warns that large, untargeted spending could make things worse.

“We are making careful choices in order to protect New Zealand’s economic future,” she said in a statement. “The Government is conscious that a careless response to this crisis could have long-lasting and painful consequences.

“We saw this in the aftermath of Covid, where excessive spending more than doubled debt and sent inflation soaring and mortgage rates skyrocketing. Kiwis are still grappling with the effects of that today.”

Prime Minister Christopher Luxon and Finance Minister Nicola Willis announced the urgent cost of living relief package on Tuesday. Photo/Supplied

The policy is expected to cost up to $373 million over a full year and is already built into Budget forecasts.

Tuiono says more direct support is needed and this includes free public transport and wider relief measures.

“We know that people are going to be reluctant to use their cars and make sure you've got free public transport.

“That seems like an easy thing to do, making sure you have targeted relief to make sure that you get people that really need it.

“I think it's also another thing as well, excluding beneficiaries as well is also problematic.”