Budget 2021: What YOU need to know
Budget 2021 sees the ‘the biggest lift in a generation’ to benefits, $1 billion for Māori housing, health and education, as well as an overall investment of $4.7 billion to health. Finance Minister Grant Robertson said this year’s Budget was "still in the shadow of Covid-19 and its focus is to secure our recovery from its impact".
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Here’s what you need to know.
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Welfare:
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Benefit rates are set to rise, with rates to increase by at least $32 to $55 a week from April next year. That is in addition to a $20 boost to all main benefits in July. It comes on top of the $25 benefit lift which came in during the Covid-19 response last year.
- Weekly benefit rates to increase between $32-$55 per adult by April 2022, estimated to cost $3.3 billion over four years (dependent on the number of people receiving benefits)
- All benefits to increase $20 in July 2021
- Main benefits to get a further boost on April 2022 to be in line with Welfare Advisory Group recommendations.
- Families with children will receive an extra $15 per adult per week
- Student support living costs increases by $25 in April 2022
- Increasing the income threshold for childcare assistance
Health:
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- $4.7 billion allocated to health
- Pharmac gets an extra $200m for the purchase of more medicines, treatment and devices
- $486m for new health reforms – that includes $98.1m to establish the Māori Health Authority
- Overall - $243m operating for Māori health which includes $18m to establish iwi/Māori partnership boards, the establishment for the Māori Health Authority and for it to invest in hauora Māori services
- $2.7b extra for District Health Boards over four years
- $516.6m for the development and running of health infrastructure, which includes a national health information platform
- Almost $400m for people with long-term physical, intellectual or sensory impairments
- $100m for air and road ambulance services.
- An extra $50m for the Healthy Homes Initiative
- $3.8m for Family Planning
Health Minister Andrew Little said Budget 2021 increased primary care funding by $46.7m a year – “so that as our population grows, GPs can contribute to provide affordable healthcare to the people who need it most”.
Māori Housing:
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- $380 million for Māori housing
- Of that, 1,000 new homes for Māori – including papakāinga housing, affordable rentals, transitional housing, and owner-occupied housing
- Repairs to 700 Māori-owned homes and support services
- $30 million for iwi and Māori groups to accelerate housing projects
- Injecting $350m from the Housing Acceleration Fund for infrastructure for Māori housing
Associate Māori Housing Minister Peeni Henare said that making sure Māori had access to warm, dry homes was important for “health, social and economic reasons”.
Economic recovery:
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- Treasury’s Budget update forecasts the deficit to narrow, reaching $2.3 billion in the 2024/25 period
- Net Core Crown debt is forecast to go up by about $100b by 2024/25 – peaking at 48 per cent of GDP in 2022/23
- Unemployment is forecast to rise up to 5.2 per cent this June, before trending down to 4.2 per cent in 2025.
- Operating allowance for Budget 2021 was $3.8b per year and capital allowance for Budget 2021-24 up to $12b.
“Despite some near-term weakness, the economy is expected to strengthen throughout the forecast period, supported by the return of international visitors and higher Government spending,” Secretary to the Treasury Caralee McLiesh wrote.
Education:
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- Training incentive allowance scaled up
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- Overall – Budget 2021 gives $1.4b over four years to operational funding for schools and early learning
- Schools and early learning get $185m, in operating and $53m in capital to establish an education service agency to support schools
- One-off funding package for maintenance and upgrades at state-integrated schools
Social insurance scheme:
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- The Government revealed today it is proposing an ACC-style unemployment insurance scheme
- The proposal looks to provide about 80 per cent cover for a limited time after a person loses their job and linked to training opportunities
Windfarm at Scott Base in Antarctica:
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- $306 million to replace windfarm and project operating costs of $38 million
- Expected to need 170 jobs for peak of construction and 700 overall over six years
Pre-Budget announcements:
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$118.6 million for improved cervical and breast cancer screening
$170 million pay boost over four years for early childhood teachers
$67.4 million over four years to de-carbonise the public sector by 2025
Priorities of Budget 2021:
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Continuing the Covid-19 response
Delivering priority and time-sensitive manifesto commitments
Supporting core public services through managing critical cost pressures
Continuing to deliver on existing investments
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Charities turning away high numbers of volunteer applications
Charities are turning away people wanting to volunteer amidst a flood of interest they say is linked to the high rate of unemployment.
It comes as some businesses receive thousands of applications for paid roles and people look for experience anywhere they can.
The advocacy organisation Volunteering NZ has been tracking the trend. Spokesperson Margaret McLachlan said there has been a considerable rise in applications for volunteer roles across a range of charities.
Many application forms asks people to divulge if they are job hunters.
"Over the last year or so, they are seeing more people coming in who are saying they are in that category. They are looking for work but doing volunteering while that process is taking place."
"As unemployment increases and the cost of living, times are tougher for everybody."
At the same time, she said community organisations supporting social services were busier and needed more helpers.
McLachlan said depending on the organisation, they might want to do a police check, a reference check and an interview.
"In some cases it can be a process to go through and not always, and that can take some time.
"It's actually the same barriers that a person might find in finding a job, can also apply to volunteering. It's not always a easy option."
SPCA had 120 op shops and animal rescue centres across the country in which volunteers worked.
General manager of retail Cathy Crichton said they received about 1300 extra applications for volunteer roles, a 32 percent increase, from June to November 2025, compared to 2024.
"There's definitely a nudge forward which is very exciting and we're very grateful."
SPCA general manager of retail Cathy CrichtonSPCA general manager of retail Cathy Crichton Photo: SUPPLIED
But it meant they were not accepting any more volunteers in some areas.
"Because the applications are up it's a unique scenario. But at this point in time, in smaller locations, we've actually got a hold in 19 locations in New Zealand where we are at capacity - and that's very rare and it's a very new trend."
Crichton said anyone seeking volunteer work should think creatively about what skills they can offer - it could be in administration or marketing.
"We'd love to welcome as many people as we could because the more hands on deck the more we can do and the more we can contribute to the community."
She said people were self-motivated to apply for volunteer work.
The unemployment rate rose to 5.3 percent in the September quarter, meaning 160,000 people were jobless. The next quarterly figures are out in February.
"There's a willingness to give back and contribute to the community. Unemployment being high really does encourage people to engage with the workforce and get experience," Crichton said.
"It really is about staying connected with the community and meeting others."
She said they had also seen an increase in young people seeking volunteer work experience.
"It's a great opportunity to get work experience and a reference and there's an appeal there as an employer...I really do think it adds value to a CV."
Stats NZ data showed over half of New Zealanders, 53 percent, volunteered during March 2025 and of those, 27.6 percent volunteered through an organisation and 40.8 percent volunteered directly for another person.
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The best board games to play (and gift) this summer
Over the holiday period, the right game can make all the difference. So which board games should you try out – and which ones should you gift?
1. Sushi Go Party
This colourful, fast-paced game has great art, and a "menu" that can be changed depending on the number of players (up to eight) and their familiarity with the game.
Players win the game by creating the best combination of cards, depending on what's available, by rotating the cards from player to player like a sushi train. It's easy to learn and relatively cheap.
2. Wavelength
In this party game, teams have to try and guess the location of a hidden target on a spectrum, using a clue from one "psychic" team member. The ends of the spectrum reflect two binaries, such as hot–cold or optional–mandatory, and the target falls somewhere in between.
The closer the team gets to where the psychic thinks the target should go, the more points they score. Wavelength is one of those games where no matter if your team gets it right or wrong, you can expect people to give their two cents.
3. Mysterium and Mysterium Park
In these team games, players play mediums seeking the counsel of another player – a ghost – who gives them clues to important information about murders in the house, including the ghost’s own murder.
The ghost offers the other players tarot cards with abstract artwork with which they must attempt to discern the murder weapon, location and culprit.
4. The Quacks of Quedlinburg
This game sees players take the role of potion makers at the local fair, who must push their luck by drawing ingredients out of a bag to make the best potions without them blowing up in their face. It’s simple to teach and hilarious when someone else blows up their cauldron (although arguably less when it’s you).
5. Modern Art
This is one of the most celebrated games from board game designer luminary Reiner Knizia. Players are art dealers auctioning off beautiful paintings done by five professional artists. Players might even forget to play as they get caught up in simply admiring the pieces they are auctioning off.
Modern Art remains a fiendishly clever game that is easy to learn but hard to master.
6. Heat: Pedal to the Metal
This strategic racing game is based on 1960s Formula 1 racing. The base game boasts four tracks on two gorgeous boards, and lovely little cars that pass each other and risk spinning out around corners.
7. Nemesis
By far the most expensive (and complicated) game on this list, Nemesis can best be described as Alien: the board game.
Players have to move through a spaceship, discovering rooms and items as they go, taking care not to alert the horrific extraterrestrials that have managed to get onto the ship – represented by amazingly designed pieces. It’s a truly tense and fun experience for a full afternoon.
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Today’s Mind-Bender is the Last of the Year! Can You Guess It Before Everyone Else? 🌟🎁🌲
I dance in the sky with green and gold, a spectacle few are lucky to behold; I’m best seen in the south, a celestial sight—what am I, lighting up the New Zealand night?
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