Pensioners, students, and everyone on main benefits will see their payments from the Government rise by 7.22% in line with inflation from April 1.
Prime Minister Chris Hipkins announced the changes today as part of his continuing focus on "bread and butter" priorities amid what's shaping up to be a tight election year.
He added it would "mean approximately 1.4 million New Zealanders will not go backwards" as they "feel the bite from the rise in the cost of living".
The changes announced today would apply on the same day that the Government's previously-announced childcare cost-of-living package would go into effect.
The minimum wage would also be increasing on the same day next month.
Under the changes, a couple on NZ Super would receive $103 more in total a fortnight, and a single person living alone receive an extra $67 with each payment.
Other main benefits that will see an increase include Jobseeker Support, Youth Payment, Young Parent Payment, Sole Parent Support and the Supported Living Payment.
Tertiary students receiving the student allowance will also see around $20 extra for each payment. It will also apply to student loan living cost payments.
"Working families will see increases to Working for Families, including an extra $4 for Best Start Payments taking it to $69 per week and an increase of $9 for the eldest child rate of Family Tax Credit, lifting it to $136 per week," Hipkins said.
Social Development Minister Carmel Sepuloni said the $311 million change was a "practical solution to ensure those being supported didn't fall behind."
Inflation "rose by 7.22% in the year to December, while the net average wage – against which main benefits are indexed – rose by 6.24%. The extra boost to main benefits covers the 0.98% gap," she said.
"For working-age people receiving a main benefit, they will see an increase of between $19.81 and $46.20, depending on the type of benefit and whether they are single or a couple."
Today's cost of living changes follows an increase to the minimum wage and the Government’s $718 million extension of discounts to the fuel excise duty and public transport fares until June.
Last November, former prime minister Jacinda Ardern announced the Government's $189 million package to make an additional 10,000 children eligible for childcare assistance.
"All up, the additional support above the annual general adjustment equates to an extra $311 million, this is on top of the $189 million announced for the changes to Childcare Subsidy," Hipkins said on Monday.
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Poll: Are Kiwis allergic to “exuberance”? 🥝
In The Post’s opinion piece on the developments set to open across Aotearoa in 2026, John Coop suggests that, as a nation, we’re “allergic to exuberance.”
We want to know: Are we really allergic to showing our excitement?
Is it time to lean into a more optimistic view of the place we call home? As big projects take shape and new opportunities emerge, perhaps it’s worth asking whether a little more confidence (and enthusiasm!) could do us some good.
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41.2% Yes
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34% Maybe?
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24.8% No
Auckland Transport----Free weekend travel for kids Making family outings easier
Did you know kids aged 5 to 15 can ride buses, trains, and ferries for FREE every weekend and public holiday with an AT HOP card?
But wait, there’s more! Load a child concession onto your child’s MyAT account and unlock 40% off weekday travel too. Managing their HOP card is super easy: create an AT HOP profile under your MyAT account, enter their birthday, and you’re good to go.
So, grab those HOP cards, tag on, and start exploring, because family adventures shouldn’t come with a price tag!
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Great news for Auckland’s tertiary students!
From 14 December, tertiary students will enjoy even bigger savings! The tertiary discount is increasing from 20% to 40% off AT HOP adult fares on buses, trains, and most ferries.
If you already have a tertiary concession loaded on your AT HOP card, there’s nothing you need to do, the increased discount will be applied automatically.
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Summer Rail Upgrades
27 December 2025 to 28 January 2026
We’re upgrading your rail network this summer as we get closer to more trains, more often, when City Rail Link opens up in 2026.
27 December – 18 January: Full rail network closure.
9 – 26 January: Partial rail network closure.
27 – 28 January: Full network closure for City Rail Link testing.
Rail replacement buses will be available throughout the summer rail upgrades to keep you moving.
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IKEA Sylvia Park – What to Expect Now That It’s Open
If you’re planning a visit to IKEA Sylvia Park, consider taking public transport.
Train: Eastern Line - it's about 19 minutes from Waitematā to Sylvia Park.
Bus: Six routes serve the area. Five stop directly at Sylvia Park shopping centre, and another stops on Carbine Road, close to IKEA.
For bulky purchases, home delivery is available to help reduce congestion and parking queues.
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Enjoy the festive season without the fuss.
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Scam Alert: Fake information regarding December Bonuses from MSD
The Ministry of Social Development is reporting that fake information is circulating about new ‘December bonuses’ or ‘benefit increases’
If you get suspicious communication, please contact Netsafe.
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