9. LYNNE PILLAY (Labour—Waitakere) Link to this
to the Minister for Social Development and Employment
What reports has she received on changes to rates for New Zealand superannuation?
Hon RUTH DYSON (Minister for Social Development and Employment) Link to this
I have recently announced new rates for New Zealand superannuation that come into effect on 1 April and show that a married couple receiving superannuation or the veterans pension will be better off by $700 a year. Around 510,000 older New Zealanders will benefit from these increases. Under our Government, superannuation has increased by 8.5 percent over and above the cost of living increases. I am delighted to say that senior citizens really are better off under a Labour-led Government.
Dr Pita SharplesTēnā koe, Madam Speaker. Tēnā tātou katoa. Has the Minister read the advice released yesterday by the Child Poverty Action Group, which suggests that although New Zealand’s superannuation is a great success story in preventing hardship amongst the elderly, many poor children have been left out of the bulk of the Working for Families package by being denied the in-work tax credit—230,000 of them—and when will her Government pay as much attention to the needs of its youngest citizens as to those of its oldest?
Yes, I have read the report the member refers to. It is not true that those on benefits with children do not benefit from the Working for Families package. They benefit from two of the three components. They do not benefit from the in-work tax credit, because they are not in work. That payment was to ensure that work did genuinely pay. The number of families who are dependent on the benefit system has now substantially reduced since the living standards report to which the Child Poverty Action Group report referred to. I just remind the House of my earlier point that under Labour the difference for a married couple on superannuation is $34 a week more than it would have been under a National Government. There is the difference between Labour and National on superannuation.
Peter BrownWill the Minister tell the House how New Zealand superannuation compares with the average wage in this country?
I certainly can. Under the legislation, the New Zealand Superannuation and Retirement Income Act, Labour committed to ensuring that New Zealand superannuation for a married couple never dropped below 65 percent of the average wage. Under the confidence and supply agreement with New Zealand First that percentage has been increased to 66 percent. This year the newly adjusted rate of superannuation will be 66.23 percent, compared with what it would have been under National, where it would have been 61 percent of the average wage. That is a huge difference.
I seek leave to table a release from the Child Poverty Action Group, “Children need to share a poverty prevention success story”.
Madam SPEAKER