Not All Eligible Families Receiving Promised Fuel Relief Payment

Lauren
Crimp Political reporter

Just
60 percent of families who are meant to benefit from a
weekly fuel relief payment have received it to
date.

In the wake of soaring petrol prices driven up
by the Middle East war, the government announced in March
that 157,000 families would receive weekly support for up to
a year, or until the price of 91 petrol dropped below $3 per
litre for four consecutive weeks.

Of those, 143,000
would get $50
a week, while 14,000 would get a lesser amount, via a
boost to the in-work tax credit for low-to-middle-income
workers with children.

But Inland Revenue data shows
an average of about 95,000 families have been getting the
payment each week since 1 April.

In total, 106,120 had
received it at least once. Some families’ circumstances
change, so they could move in and out of eligibility week to
week.

When Finance Minister Nicola Willis announced
the relief, she said the families would benefit each
week.

But a spokesperson for the minister told RNZ
157,000 families would benefit “if it remains in place for a
full 12 months”.

“Many will benefit for the entire
year; some will benefit for shorter periods if their
circumstances change,” they said in a statement.

When
the prime minister was asked about it during a media
conference on Tuesday, Willis was overheard quietly telling
Christopher Luxon: “I can talk to this, it’s RNZ mischief
making.”

She stepped up to the microphones and said
RNZ had misunderstood.

“We were clear and advised by
IRD that up to 143,000 families would be eligible for the
full payment, and another 14,000 or so for a partial
payment.

“It’s always been the case that how they
claim that in-work tax credit is up to them.”

That
meant the number of families who had claimed it so far did
not represent the total number that would eventually
benefit, Willis said.

But that did not match the
language she had consistently used when the support package
was first stood up.

A 24 March press release
announcing the boost said: “From 7 April, about 143,000
working families with children will get an extra $50 a week
through a boost to the in-work tax credit. The boost will
also expand eligibility to around 14,000 additional working
families, who will receive the tax credit at an abated
rate.”

Another on 29 March said: “As announced last
week, an increase to the in-work tax credit will result in
143,000 working families receiving a further $50 boost per
week for up to a year, as part of the government’s
temporary, targeted support to help with fuel costs. A
further 14,000 families will receive up to $50 per
week.”

By Budget Day – 28 May – the language used in
her speech to Parliament slightly softened, saying the
support would reach “up to” 157,000 families.

“As
previously announced, the Budget funds a temporary increase
to the in-work tax credit of $50 a week, supporting up to
157,000 low-to-middle-income working families.”

20
percent of families likely to choose delayed
payment

Inland Revenue expected 20 percent of
eligible families – about 30,000 – would claim the payment
as a lump sum at the end of the tax year (31 March), because
households can choose whether they receive the in-work tax
credit weekly, fortnightly, or in one big chunk.

RNZ
asked Willis’ office whether that reflected the government’s
intention, given it was meant to provide timely relief for
those struggling with the price of fuel.

“When and how
they choose to receive their payments is up to them.
Feedback from families receiving the additional support has
been very positive,” the spokesperson said.

“The
government is not going to discriminate against families on
the basis of how they choose to receive their
payments.”

‘Happy days’ as fuel prices drop –
Willis

Officials advised the national average price
of 91 petrol was likely to drop under $3 a litre on
Wednesday, Willis said.

“That means the clock starts
ticking, if we see four consecutive weeks of fuel being
below that $3 price, then that would trigger us being able
to lift the temporary supports.”

That would mean the
country would have returned to normal fuel prices, she said,
which would be a relief for struggling families and
businesses.

“So I say, happy days when the fuel price
is coming
down.”

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