New Zealand's

PM Chris Hipkins is giving students a boost in 2023

If you are a student in New Zealand, you might have some good news coming your way. The government has announced a $2 billion welfare package that will increase the income of students receiving Student Allowance by $50 per week from April 1st, 2023.

This is part of a larger package that also includes increases to Superannuation, benefits, and child support payments. Prime Minister Chris Hipkins said that this was a “bread and butter support” to help people cope with the rising cost of living.

According to Hipkins, the package will benefit about 52,000 students who are eligible for Student Allowance. He said that this would help them cover their basic expenses such as rent, food, and transport.

Student Allowance is a weekly payment that helps students with their living costs while they study full-time. It is not a loan and does not have to be paid back. The amount of Student Allowance depends on the student’s age, marital status, dependents, income, and assets.

Currently, the maximum rates for Student Allowance are $237.76 per week for single students aged under 24 living away from home; $323.40 per week for single students aged 24 or over; $480.76 per week for married or partnered students; and $103.88 per week for each dependent child.

With the new increase of $50 per week, these rates will go up to $287.76; $373.40; $530.76; and $153.88 respectively.

The government said that this increase was overdue as Student Allowance had not been adjusted since 2018. It also said that this would help reduce student debt and encourage more people to pursue higher education.

Some student groups welcomed the announcement and praised Hipkins for his leadership. They said that this would make a significant difference in the lives of many students who struggle to make ends meet.

However, some critics argued that the increase was not enough to keep up with the inflation and housing crisis. They said that many students still face high fees, low quality education, and limited job opportunities after graduation.

They also questioned why the government did not extend the increase to student loans as well as allowances. They said that this would create an unfair gap between those who qualify for allowances and those who do not.