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Presbyterian Support Otago Family Works director Carmen Batchelor said the increase was welcome, but unfortunately did not go far enough to address the "current distressing levels of poverty that children are experiencing".
The Government has committed to increase weekly main benefit rates by between $32 and $55 per adult, starting immediately with a $20 increase on July 1.
"We are happy to see much-needed and substantial increases in benefits and student living costs, as well as the increased income threshold for child-care assistance," Ms Batchelor said.
However, to achieve the aim of allowing people to live with dignity, the Government needed to urgently and fully implement the 2019 Welfare Expert Advisory Group’s recommendations, she said.
"The effect on families will be to create a glimmer of hope but [it] still does not cover the fundamental costs of living, such as rent, power and food."
Housing was also targeted in the Budget, $3.8billion being allocated to the new Housing Acceleration Fund and $120million provided to continue the Warmer Kiwi Homes scheme.
She hoped Kainga Ora would make use of the funding in the longer term.
"Even though Dunedin is not a large city, being homeless hurts people here just as much as it does in our bigger cities.
"Demand for housing in Dunedin far outstrips supply, so it’s critical that supply is increased," she said.
It was great to see $100million to support implementation of the Healthy Homes standards in rental properties, as this was vital to ensure children and their families had dry and warm and housing, Ms Batchelor said.
The $380million for Maori housing was also very welcome.
"It is disappointing though that there are no new funded initiatives to address child poverty and nothing specific to improve the lives of older people," she said.