Will's Word: Is the Govt's fuel support package enough?

So almost 150 thousand families are about to get an extra 50 dollars a week, aimed at taking the edge off rising fuel prices driven by the Middle East conflict.

It’s targeted through Working for Families, so it goes to low and middle-income households with kids.

Which means straight away, a lot of people miss out.

So I completely understand why the reaction from a lot of people is, “is that it?”

But is this actually the responsible thing to do?

Not because the need isn’t there, of course it is. But because of what's happening with the economy.

The Reserve Bank came out yesterday and basically confirmed these global pressures are likely to push inflation higher again in the short term.

And once inflation goes up, everything goes up with it.

Rising costs are hitting households hard, with many forced to cut back on essentials. Photo/PMN News

Need I remind you we've just gone through a period where inflation ran red hot, interest rates shot up, and we got squeezed everywhere.

The last thing anyone wants is to undo the progress that’s been made in getting that back under control.

Because if inflation lifts again, this whole cost-of-living situation drags out even longer.

You could absolutely argue the Government should do more, but there's a trade-off. More spending, especially broad, risks pumping more money into the economy.

And that’s how you end up fuelling inflation again.

Listen to Will's Word below:

Same with calls to cut fuel excise. Pull it out, and you either cut elsewhere or borrow more. Neither option is painless.

So what you’re seeing here is the Government trying to walk a very tight line.

Is it enough? Of course not.

Does it leave people out? Frustratingly yes.

Does it feel underwhelming? Yeah, it does.

But it is a start.