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Govt’s 90 cent Cost of Living increase pales compared to Housing Crisis Hikes for Students
Govt’s 90 cent Cost of Living increase pales compared to Housing Crisis Hikes for Students
While the Government
has announced cost of living increases of 0.51 per cent to
benefit levels “to ensure that those people who rely on
state assistance aren’t disadvantaged by inflation”, the
students’ union is pointing out the fact that Government
support is not nearly keeping pace with real increases to
the cost of living faced by New Zealand’s 400,000
students.
Social Development Minister Anne Tolley announced yesterday that benefit and superannuation payments to more than a million New Zealanders will increase on April 1, following legislation passed in 2011 that made sure that benefits increase each year in line with inflation.
The claim that “Rates and thresholds for … StudyLink assistance will rise to keep up with increasing living costs” is simply not true, says the New Zealand Union of Students’ Association's National President Rory McCourt.
“The 90 cents a week increase to student allowance and living cost loan rates does nothing for students facing a $10 or $20 a week hike in their rent from last year, which was already unaffordable.”
“Accommodation costs are galloping in front of general inflation. Just last week TradeMe revealed a 9 per cent hike in average New Zealand rents for the year to January. For students, it’s even worse.” says McCourt.
“The housing crisis means the Government’s increase does not do its job of protecting fixed-income New Zealanders against changes in the real cost of living. New Zealand’s students need a top-up.”
The worsening situation highlights how broken the student support system is, he says.
“The accommodation benefit, which the poorest 40% of full-time students who qualify for student allowances receive, has been capped for over a decade. If you’re a student in Auckland, you’re now supposed to pay your average rent of $220 a week with a $40 accommodation grant. It’s ludicrous.” says McCourt.
Twenty years ago, when the student allowance and loan scheme was introduced, accommodation costs for students in a place like Auckland made up half their weekly income.
“Now the cost of rent alone makes up more than what a student gets in the hand from their allowance. Even worse, for the majority of students who borrow to live there’s a $40 a week gap to pay the rent.”
“It’s time the Government took the student housing crisis seriously before we lock a generation out of tertiary education.” McCourt concludes.
Figures per week:
Maximum student allowance: $174.21, rises to
$175.10
Maximum accommodation benefit (for allowance
students only, living away from home): $40 in Auckland,
Wellington, Christchurch
Maximum student loan living
costs: $175.96, rises to $176.86
Average student rent in
Auckland (bedroom in 3 bedroom flat): $218.16 in 2014, up
from 209.90 in 2013 (based on MBIE Housing Data)
National
average annual rent rise: 9% to January 2015
(TradeMe)
About NZUSA: NZUSA is the national body that
represents New Zealand's students’ associations and their
400,000 students at universities, polytechnics, wānanga and
in trades
training.
ENDS
NZUSA - New Zealand Union of Students' Associations
We stand for opportunity, for all.
NZUSA is the New Zealand Union of Students' Associations, the national body that represents New Zealand's students' associations and the interests of New Zealand's 400,000 students at universities, polytechnics and in trades training.
We conduct original research, advocate to Government and through the media, and support New Zealand's students' associations to be more effective on behalf of their members. We advocate alongside Te Mana Akonga – The National Māori Students' Association, and Tertiary Women New Zealand – The NZUSA Women's Caucus.
Since 1929, we've believed in a society rich in opportunity, where anyone from anywhere can become any thing. We support accessible, affordable quality public tertiary education.
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