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Jacinda Ardern s budget made progress on poverty, but it s not mission accomplished

Jacinda Ardern’s budget made progress on poverty, but it’s not mission accomplished Max Rashbrooke © Provided by The Guardian Photograph: Hagen Hopkins/Getty Images “Today, we close a chapter on our past.” So said New Zealand prime minister, Jacinda Ardern, on Thursday, as she launched a budget that included the largest increases to benefits since the 1940s. But although she should be congratulated for finally taking concrete steps to attack poverty and inequality, there is a real danger of celebrating too soon. Child poverty is one of our much-lauded prime minister’s signature issues, and she has committed herself to ambitious targets that require hardship rates to be cut by as much as two-thirds by 2028. If achieved, this would be an exceptional feat, a rapid reduction that would place New Zealand among the world’s best performers.

Jacinda Ardern s budget made progress on poverty, but it s not mission accomplished | Max Rashbrooke

Jacinda Ardern s budget made progress on poverty, but it s not mission accomplished | Max Rashbrooke
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Main Benefit Boost: Up To 33,000 Children Lifted Out Of Poverty

Thursday, 20 May 2021, 1:57 pm · Weekly benefit rates lifted by between $32 and $55 per adult, in line with a key recommendation from the Welfare Expert Advisory Group (WEAG). · In total, 109,000 families and whānau with children will be, on average, $175 a week better off as a result of changes made by the Government since 2017. · Student living support will increase by $25 per week on 1 April 2022. Between 19,000 and 33,000 children are projected to be lifted out of poverty on the after-housing-costs measure in 2022/23 as a result of increases to benefit levels in Budget 2021. All benefit rates will increase by $20 a week from 1 July this year. A second increase will occur on 1

Budget 2021: Benefits to increase by up to $55 a week

Photo: RNZ / Samuel Rillstone The government will implement the increase in two stages, with the first being a $20-a-week increase from 1 July this year. A second increase will occur on 1 April next year, bringing benefits up to the levels recommended by the Welfare Expert Advisory Group. Whānau with children will be topped up an extra $15 per adult, per week. It is projected the changes will lift between 19,000 and 33,000 children out of poverty on the after-housing costs measure in 2022/23. On the before-housings costs measure, that figure is between 12,000 and 28,000 children. All up, the increases to main benefits will cost $3.3 billion over four years.

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