The Wireless

Leaders would struggle on low incomes

09:03 am on 15 September 2014

The country's political leaders agree they would struggle to live on the incomes of the poorest households.

The poorest 10 percent of households live on disposable incomes of less than $21,000 a year while the next 10 percent make do with between $21,000 and $30,000 a year.

Statistics New Zealand's figures reveal half the country's households live on less than $57,000 a year, and that median disposable income has gone up 18 percent between 2008 and 2013 - a faster rate than inflation.

Those on the lowest incomes have also experienced stronger income growth but party leaders agree they do not earn anywhere enough.

National Party leader John Key conceded he would struggle.

“I think it would be very, very challenging and that's why the Government stands up and gives support to those families. I mean $8 billion in welfare support this year, a couple of billion dollars in Working for Families largely focussed at the very low income end.”

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Green Party co-leader Russel Norman, who is critical of National's policies, said it would be difficult to live on a low income.

“Especially if you've dependents. I mean just the cost of housing alone could easily eat up that amount of money ... It would be very difficult for me and my family to live on $21,000 a year.”

Labour’s leader David Cunliffe said he, too, would struggle to survive to survive on $21,000.

“I would find it extremely difficult just as other people find it extremely difficult.” People displayed tremendous courage in eking out a living for their families, Mr Cunliffe said.

New Zealand First leader Winston Peters questioned the circumstances of those on the lowest incomes.

“Is that with a home or without a home? Is that with a mortgage or without a mortgage? Is that living in the country with a garden or with a garden big enough to handle it? Is that living by the beach where I can catch fish and alternative food? That depends on the circumstances. But it is a very, very low income.”