Minimum Wage Increase Fails to Match the Real Cost of Living
Māngere Budgeting Services Trust welcomes the government’s decision to increase the minimum wage, which will provide some relief for many low-income workers.
However, a 2% increase does not keep pace with the real cost-of-living pressures families are facing.
The cost of essential items such as food, electricity, rates, and insurance continues to rise at a higher rate than wages.
Māngere Budgeting Services clients utilising the Tatou Social Supermarket service
From what we are seeing on the ground, a more meaningful and sustainable approach would be to align the minimum wage with the living wage, currently $28.95 per hour.
This rate more accurately reflects the true cost of meeting basic household needs. Any transition toward this must be supported by improved productivity and a stronger economy.
“For many of the families we support, employment no longer guarantees financial security,” says Lara Dolan, Chief Executive Officer of Māngere Budgeting Services Trust.
“We are seeing working parents who simply cannot keep up with the rising cost of necessities. A minimum wage increase that does not match real-world costs leaves too many people behind.”
Trolleys showing Tatou Social Supermarket points system designed for tailored support
While the Trust remains deeply committed to its vision and mission, it cannot continue its mahi with limited funding, particularly in its food support programmes, at a time when demand is growing rapidly.
“Our food support and financial capability services are being stretched to their limits,” Dolan says. “Community organisations like ours are on the frontline of the cost-of-living crisis. Without increased and sustainable government funding, we risk not being able to meet the needs of families who need our support.”
Māngere Budgeting Services Trust Ōtāhuhu Office & location of Tatou Social Supermarket - 33A Walmsley Road, Ōtāhuhu
Māngere Budgeting Services Trust urges the government to increase funding for frontline community services, strengthen the economy, lift productivity, and create meaningful employment opportunities that allow families to not only survive, but thrive.
About Māngere Budgeting Services
Mangere Budgeting Services Trust has been helping whānau and individuals achieve better lives for themselves and their tamariki since 1994.
Our vision - Empowering and educating communities to financial independence and well-being.
Our services include Financial Mentoring and training, Financial Literacy classes, Debt Solutions, Housing and Financial Advocacy, Counselling and Food Support programme.