Best of BusinessMichael Reddell: Former RBNZ economist says permanently lifting real level of welfare benefits is costing another $300 million
A U-turn of sorts from the Government.
About 1.4 million New Zealanders will be helped when increased main benefits, superannuation and student support payments increase in line with inflation.
They'll rise from next month, alongside Childcare Assistance income threshold increasing.
Former Reserve Bank Economist Michael Reddell told Mike Hosking a few years ago the Government changed from indexing benefits to inflation, to wages.
He says this year, wages rose less than inflation, so they switched back.
Reddell says permanently lifting the real level of welfare benefits is costing another $300 million.
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