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.

LISTEN ABOVE

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.
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.