The amount of money the Ministry of Social Development has paid out to help people on benefits or low incomes with car repairs has tripled in the last six years.
People need cars to get their children to school, look for jobs or accommodation or keep medical appointments, Auckland Action Against Poverty says. Photo: 123RF
Official figures, obtained by National, show that in the year to March, MSD spent $33.6 million helping people pay for car repairs with almost 50,000 grants, loans and advances.
In 2016, that figure was $11m, for 22,500 payments.
Auckland Action Against Poverty coordinator Brooke Pao Stanley said for many people, having a car is essential for getting their children to school, looking for jobs or accommodation, or getting to medical appointments.
"I think people requiring support with car repairs, in terms of the space we work in, it is really normal for us to see people come in and ask MSD for help," she said.
National's social development spokesperson Louise Upston said the figures showed more low income families were struggling under ever-tighter budgets.
"I suspect what it is really telling us is because of housing cost price pressure, people do not have money to pay for other things that come up."
Pao Stanley said it was particularly tough for beneficiaries.
"I think we have been really clear that benefit levels just don't cover enough for people to get their car fixed, and it is hard also for people to try and put money away every week in order to save for these things," she said.
But Upston does not think increasing benefits and lifting the minimum wage is the answer.
"The price of rent is going up faster than anything else right now and that is where the government must focus its efforts."
Upston said more must also be done to get people off benefits and into work.
"If you are in a job, you will always have a higher income than on a benefit. That gives you more choices and more opportunities," she said.
Social Development Minister Carmel Sepuloni said some of the increases in grants will be because the government has made it easier for people to get what they are entitled to.
"I think that is what we are seeing now, there has been a culture shift. There is not the barriers put up to people being able to get access to the types of support that they need."
Carmel Sepuloni, left, and Louise Upston. Photo: RNZ
Sepuloni defended the government's actions so far, to help people on low incomes meet their rising costs.
"We have already moved to increase benefits, we have indexed to wages, we have made a number of other significant changes, but as I have always acknowledged, there is more to do in the income inadequacy space."
Overall, demand for hardship assistance remains high: in the year to March, close to $865m was spent providing grants, loans and advances to cover things like food and emergency accommodation - up $200m on the year before.
Dozens of non-government organisations, including Auckland Action Against Poverty, the Salvation Army, church groups and unions have all been calling for substantial increases to benefits.
