Decisions made by governments can have big consequences for our communities. The economic reforms of the 1980s and 1990s are a perfect example of that.

It was a time of global uncertainty then too, and because the government didn’t act to protect people, many New Zealanders were left behind. In fact, the inequality that grew out of that period still lingers in New Zealand today.

During our time in office, Labour was determined not to repeat those mistakes. We worked hard to lift incomes and in the face of big challenges, like COVID-19. Despite the uncertainty and high global inflation, we stepped up support for the cost of living and focused on wages, and jobs like apprenticeships, to help people through.

Part of this effort included putting more money in peoples’ pockets each year on April 1. Workers got an increase in pay with the minimum wage rising, retired New Zealanders got a bump to their Superannuation, and those who are doing it toughest and relying on a main benefit – like sole parent, jobseeker or supported living – got a bit extra each week.
We lifted the minimum wage by almost $7 an hour during our time in office. And we made changes so that when wages rose, so would people’s benefits – which the Children’s Commissioner said was the best thing a government could do to lift kids out of poverty.

We chose to give more support to those who have the least, rather than those who already have enough.
But this year the April 1 package looked different. Christopher Luxon and his Government chose to give $2.9 billion to landlords, while only lifting the minimum wage by a measly two percent which will take workers backwards in real terms.

National also chose to reverse our decision to index benefits to wages. This means someone on jobseeker support will be $50 a week worse off by the end of the decade, while someone on a disability benefit will be $60 a week worse off. That’s between $2600 to $3120 less a year by 2030.
All of these decisions, alongside National’s plans to reduce carers’ access to disability support and refusal to commit funding for the school lunch programme will see many in New Zealand getting or saving less.

We know that the investments governments make to lift peoples’ incomes, particularly in tough times, can last well into the future.
But it comes down to choices, and the contrast between Labour and National is clear.
The decisions we made were to help everyone to get ahead, while National is choosing to help just a few.

Hon Jenny Salesa, Labour
Ethnic Communities Spokesperson