Prime Minister Jacinda Ardern says Cabinet will today look at the soaring cost of living and what the government can do to help.
Prime Minister Jacinda Ardern visited the West Coast, which was damaged by severe weather early this month. Photo: RNZ / Sam Rillstone
She acknowledged many families were in crisis and said any Cabinet decisions made today would be made public this afternoon.
"Undoubtedly for many families there is" a cost of living crisis - PM Jacinda Ardern
Ardern said worldwide events have led the government to be concerned about rising inflation since the end of last year.
Ardern said that is why the government is introducing a package of measures on 1 April including increasing the family tax credit benefiting about 60 percent of its recipients, an across the board increase to benefit rates and increases in support for superannuitants.
She said the winter energy payment comes in on 1 May which also benefits superannuitants.
"But we are also concerned that there are some middle income New Zealanders for which yes the family tax credit will reach and that increase will benefit but when you look at the energy crisis, it is acute right now."
Ardern would not be drawn on specifics that Cabinet may consider, including a temporary removal of petrol taxes.
She said they would consider a range of options.
Ardern said it is important to remember that any decrease to fuel excise means that transport projects that use that money would need to be compensated.
Some other countries such as Ireland have temporarily removed or decreased their excise, she said.
"I don't think you've seen any country who is lifting permanently, or cutting permanently, because you have to supplement those projects, they're already committed.
"Every cent of excise goes to transport projects or maintenance for our roads and is already under increasing pressure."
Ardern acknowledged that families are feeling the pressure and acknowledges that for many families it will be a crisis.