ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Allowance increase not likely to leave students any better off

Author
NZ Herald,
Publish Date
Tue, 21 Nov 2017, 12:06PM
(Photo / Mark Mitchell)
(Photo / Mark Mitchell)

Allowance increase not likely to leave students any better off

Author
NZ Herald,
Publish Date
Tue, 21 Nov 2017, 12:06PM

Rent rises will soak up most of the $50 a week student allowance increase that kicks in on January 1, student organisations say.

Education Minister Chris Hipkins on Tuesday said the increase was in place and he had delivered on the pre-election promise.

"This will make more than 130,000 students $50 a week better off," he said.

"We have heard the concerns of students and their families who have told us cost is a real barrier to taking on tertiary study."

The allowance will increase from $177 to $227 a week.

The Union of Students' Associations welcomed the increase but said it didn't mean students would have more disposable income.

It's latest income and expenditure report found median student spending was $300 a week.

"The $50 increase means that students will have a bit more left for food after paying their rent," said national president Jonathan Gee.

"All we've been asking for is enough to live on."

Mr Gee said only a third of students were eligible for the allowance and the majority were expected to borrow to live.

The association wants further steps, including raising the parental income threshold for student allowance eligibility.

The lobby group Aotearoa Students' Alliance said the $50 increase was "a pittance for future generations of students".

"A $50 boost now does nothing for those students in the future who face higher costs through rent price inflation," said spokesman Jack Close.

Mr Hipkins says the government is on track to deliver the second of its promises - the first year of fees-free education and training from January 1.

"Final decisions are being worked through and students can rest assured that the first year of fees-free study will kick in next year, and they should plan accordingly," he said.

The full programme is three years' fees-free by 2024.

Take your Radio, Podcasts and Music with you