Changes announced in Budget 2022

The things that will be changing include:

• the way Child Support is paid to sole parent clients
• increased income limits for hardship payments
• more money for immediate and essential dental treatment
• a new 'Cost of Living' payment from Inland Revenue
• discounted public transport for Community Services Card holders
• implementing the Better Later Life strategy for seniors
• continuing to fund Building Financial Capability agencies.

Child Support Pass On

From 1 July 2023, there are changes to Child Support for sole parent Work and Income clients, giving them more money to raise their children.

The Government will directly pass on Child Support payments to people receiving a sole parent rate of benefit. This means they are treated the same as most other clients with tamariki.

The changes take effect on 1 July 2023, and will also allow sole parents greater flexibility in their Child Support arrangements.

Increased income limits for hardship payments

The Government is permanently increasing the income limits for some hardship assistance from 1 July 2022. These limits were temporarily increased from 1 November 2021 as a response to the effects of COVID-19.

The increases mean more people, including those working on a low income, will be eligible for one-off immediate and/or essential needs through:

• Special Needs Grants
• Recoverable Assistance Payments
• Advance Payments of Benefit.

Immediate and essential dental treatment

From 1 December 2022, Work and Income clients and people on low incomes will be able to get Special Needs Grants for immediate and essential dental treatment – up to a maximum of $1,000 in a 52-week period. They will be able to get treatment more than once during a 52-week period.

Right now, people can apply for one grant of up to $300 for emergency dental treatment in a 52-week period, and only if this need has arisen from an emergency situation.

These changes mean people can get the dental treatment they need without going into debt, and before their dental health deteriorates too much.

Cost of Living payment

Starting in August 2022, a Cost of Living Payment is being introduced to help people on a low to middle income who earned up to $70,000 between 1 April 2021 and 31 March 2022.

This temporary payment from Inland Revenue is for people who are not eligible for the Winter Energy Payment.

The payment will total $350, paid in three monthly payments in August, September and October 2022.

The Cost of Living payment won't affect any assistance people get from Work and Income.

If you're eligible, you won't need to apply for this payment. Inland Revenue will assess your eligibility and in most cases will pay the money directly into your New Zealand bank account. It'll be around the start of each month.

Find out more about the Cost of Living payment on Inland Revenue's website.

Discounted public transport fares for Community Services Card holders

From 1 September 2022, Community Services Card (CSC) holders across New Zealand may be able to apply for half-price public transport.

This is a target date for regional councils to work towards.

Get more information from the Ministry of Transport and Waka Kotahi.

Better Later Life strategy for seniors

Budget 2022 continues to implement the Better Later Life – He Oranga Kaumātua strategy and its action plan He Mahere Hohenga. This supports senior New Zealanders through 3 priority actions:

• supporting digital inclusion
• senior entrepreneurship
• shared housing.

Find out more about Better Later Life on Te Tari Kaumātua, Office for Seniors website.

Continuing to fund Building Financial Capability

The Government will continue to support Building Financial Capability providers, who are working with individuals and whānau to improve their financial capability and reduce their risk of financial hardship.

Building Financial Capability is a range of services and products that help people, families and whānau to build their financial wellbeing.

In earlier Budget 2022 announcements

The Government has already announced support for employers with apprentices and help for people to get a driver licence.

There's more detail about these on the Beehive website.