Cost of living policies not enough students say

Students are struggling to make ends meet despite the cost of living policies announced by the government. Photo: Canta files.

A range of new government measures have now come into effect to minimise the impact of the rising cost of living. But despite the new changes, it’s not all good news with other government support packages coming to an end.

Canta talked to students to weigh up the impact of the new measures against the end of other policies to see the how they expect the changes to affect them.

Firstly, the good news. Although half-price public transport fares for all have ended, many students will still get a good deal with 50% off fares being made permanent for those 13–24. Those with a Community Service Card and Total Mobility Users will also benefit from half-price fares.

The $5 prescription co-payment has also been scrapped, which is estimated to reduce the cost of collecting medication for three million people.

Minister for Social Development and Employment Carmel Sepuloni says that helping Kiwis with transport and medication costs is a key component of the government's approach towards the cost of living. 

"We recognise that many people and whānau need some help with the basics right now which is why our Government is continuing to make targeted investments that won’t drive up inflation."

For students, these changes could provide some respite from soaring costs. Those Canta talked to felt that half-price fares were the change that would impact them the most, particularly those who bus to work or campus. 

Views on the removal of the prescription co-payment seemed to be more mixed, with some saying this wasn’t going to have a significant impact on their costs. 

While another said that the removal of the prescription co-payment, "will save [them] a decent amount of money," noting this could be around $80 a year. 

Despite these changes, other key cost-of-living support schemes have now ended. Notably, the fuel subsidy of 25 cents per litre in place since March last year is now over. 

This change has students worried. Particularly heading into winter when other costs such as heating are on the rise.

"We won’t be doing as many road trips or driving around due to the increased cost of fuel," one student said. "The flat will be much colder." 

In weighing up the impact of all these changes, students felt that the new policies didn’t focus on the areas they needed help with most.  

The increasing prices of basics such as food and rent are where students said they want changes. One said that "rent has increased, food staples like chicken are 50% more expensive than when I started flatting."  

He suggested further moves such as changes in requirements for the student allowance to give more students support. While others said that more help with the cost of accommodation, food, and electricity would help them the most. 

One student said that without further changes they and others will continue to feel the pressure of high costs.

"It has had a massive effect on what can be financially achieved on a student budget."