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Watch: 'Band-aid economics' Luxon reacts to Govt's childcare announcement

Author
NZ Herald,
Publish Date
Sun, 6 Nov 2022, 4:10PM

Watch: 'Band-aid economics' Luxon reacts to Govt's childcare announcement

Author
NZ Herald,
Publish Date
Sun, 6 Nov 2022, 4:10PM

National’s Christopher Luxon is fronting to media after Jacinda Ardern unveiled a substantial $189 million boost to the Government’s childcare subsidies scheme.

The Prime Minister announced the changes this afternoon that will see more than half of families qualify for subsidies on their children’s pre and after-school care.

The changes were outlined by Ardern in her speech to the Labour Party conference today as a way to ease the cost-of-living pressure on families on low to middle incomes.

Ardern also announced what the increases to Working for Families tax credits will be from April next year, after they are adjusted for inflation. - increases expected to cost about $26 million.

Luxon is speaking to media from the Shore Road Reserve in Auckland’s Remuera.

The childcare subsidy changes will significantly boost the income thresholds for eligibility for childcare subsidies, worth more than $200 a week for some families.

It starts in April next year and cost an extra $189.391 million over four years.

It will mean about 10,000 more children are eligible and the subsidies will increase for many of those who already qualify. More than half of all families with children will be eligible for the subsidies which cover childcare, and before and after-school care.

Prime Minister Jacinda Ardern speaks at the Labour Party conference this afternoon where she is expected to unveil a new measure aimed at helping with the cost of living. Video / Jed Bradley

The Working for Families family tax credit will increase from April next year – it is pegged to inflation and high inflation has meant a bigger increase than usual. That increase will benefit about 60 per cent of families who get it. The Best Start payment for those with new babies will also lift by $4 a week.

 

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