Last Thursday was a big day for the country. The Labour Government outlined where the big bucks will be spent in the next two to five years and among the many announcements it addressed the cost of living, health and Covid-19 relief.
There is a lot to unpack.
In the next two years there will be a total of $30.906 billion dollars of operating expenditure. But what does this all mean for the youth of New Zealand?
Grant Robertson presents his budget speech to Parliament Photo: Phil Smith
During the Budget statement, Minister of Finance Grant Robertson’s said it is about “laying the foundation for the future, including addressing key issues such as climate change, housing affordability and child poverty”
With the cost of living increasing steadily, it's not surprising that young people are worried about how much it will cost them to fend for themselves. An article released by NewsHub spoke on the recent stats on the cost of living from StatsNZ. Groceries expenses have gone up 7.6% percent since March of 2021. And although the Government introduced a 25 cent fuel excise cut in March, we still see a spike in petrol prices to around $3 dollars a litre.
“We will extend the cut to fuel excise duty and road user charges, and also keep public transport at half-price for the next two months to provide further support in the face of high global oil prices,” Roberston said.
As a young person these statistics alone make me scared to leave home. So what has the Government got on offer to address these fears and solve the high cost of living?
In the budget an estimated 2.1 million people over the age of 18 and earning under $70k will get an extra $27 dollars a week for three months from the 1st of August. This payment is aimed at middle to low-income earners.
Treasury actually advised against the Government's cost of living payment plan as a "poor mechanism for supporting households with a longer-term problem”. This means that it could actually end up contributing to the cost of living crisis.
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Young people I’ve spoken to are confused and apprehensive about Budget 2022. …. One person I spoke to said “ I was very confused, I pay a similar amount of taxes and just because I'm 17 I get no support. I still live at home but where’s the support for when I leave home?”
Another said “With university coming up soon I’m very worried about how I'm going to pay for my halls [of residence] and with the cost of living rising it’s going to be tough”.
Alongside the cost of living payment plan. The Government unveiled there will be a $15 millon boost over the next four years for youth development services. Inside this boost the Goverment is hopping to reach an additional 6,800 young people to be able to access the development services.
Priyanca Radhakrishnan (Minister of Youth), Said “This funding boost reinforces the Government’s commitment to making Aotearoa New Zealand the best place in the world for children and young people.”
The youth of today are concerned about how they will be able to afford the cost of living once they leave home and there’s little in the Budget to make them feel acknowledged. It will be interesting to see how the Budget pans out and what the future will look like for the youth of today and whether the fuel tax and extra $27 dollars a week will be enough.
*Aimee Muller is a member of the Youth Press Gallery which takes the role of independent media reporting on youth MPs and Youth Parliament 2022. This article can be republished freely on your platform subject to the following conditions:
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- It must include the following attribution to RNZ as the copyright owner: This story was originally published on RNZ and is republished with permission.
