Prime Minister Chris Hipkins is speaking about the change at his weekly post-Cabinet press conference, ahead of April 1, when other increases to benefits, superannuation and the minimum wage go ahead.
About 1.4 million New Zealanders will have more money in their pockets in the coming weeks, including community nurses whose pay bump comes into force this week, Hipkins said.
From June 2017 to June 2022 the median wage had increased by nearly a quarter, 23.8 per cent, which means pensioners are receiving more money as superannuation was largely tied to the median wage.
Childcare subsidies also come into force in April, as announced by the Government under former PM Jacinda Ardern.
Hipkins acknowledged the measures won’t fix the problem but will assist people struggling with the cost of living crisis.
"Our focus is clearly on the issues that matter."
Social Development Minister Carmel Sepuloni said the change to child support would benefit more than 41,000 sole parents by a median of $20 a week.
It is estimated to help lift 14,000 children out of poverty.
The bill will see child support collected by Inland Revenue and passed directly onto parents on a sole parent rate of main benefit from July 1, 2023.
Currently, child support payments are collected and used to offset the cost of the benefit paid to these parents.
It was a change recommended by the Welfare Expert Advisory Group in 2019, which said "money intended for children should not be withheld by the Government".
"These changes will make the system less discriminatory, while also giving parents on a sole parent rate of main benefit a bit extra to help with the cost of raising their children," Sepuloni said.
"We know that right now, every little bit counts."
