One of the big-ticket items in yesterday’s Budget was a $3.3billion spend, over the next four years, on boosting benefit levels.
All weekly benefit rates will increase by between $32 and $55 per adult in April next year.
The sole-parent support benefit — which is $398 a week at present — will jump to $434 a week in April next year.
The jobseeker support benefit will go from $267 a week to $315 a week — a 17.9% jump.
But Salvation Army Dunedin Community Ministries manager David McKenzie said those increases were not nearly enough to stem the tide of growing inequality.
"Unfortunately, it’s quite disappointing," he said.
He believed at least an extra $100 a week was required.
He cited the example of a single parent with a young child who was paying $485 a week in rent, and had $130 left for all other expenses.
"You can’t actually live on that."
Housing was the biggest driver of social issues, he said.
Presbyterian Support Otago chief executive Jo Rowe said any increase in benefits was welcome and the Budget was a good start, but there was plenty more work to be done in areas such as housing.
Rent was usually prioritised over food, for example, and when rent costs were high, other bills suffered, she said.
