Today sees a raft of changes kicking in, including a bump to all main benefits, the extension of the training incentive allowance, and a 2.5 per cent increase to paid parental leave.
The Government announced the $20 per week increase to all main benefits during Budget 2021, with another increase coming next year.
Murray Edridge of the Wellington City Mission said $20 a week would make a huge difference for some people - even the difference between paying the power bill.
"There'll be huge cause for celebration today. If you're living on the margins, $20 is a huge, huge thing for you.
"Twenty-dollars isn't about four cups of coffee, $20 is about paying the power bill, or paying an outstanding debt which if you don't get it sorted, is going to cause a problem.
"So we know that $20, even though it's a marginal amount, will make a huge difference in people's lives."
In January, there was a sharp rise in requests for food grants after the amount needed tripled in recent years , while 1.5 million emergency food grants were issued in 2020.
February showed 125,000 children were still living in material hardship , with Māori and Pasifika children, and those with disabilities are more likely to be living in poverty.
Social Development Minister Carmel Sepuloni said the raise would impact about 355,000 New Zealanders.
"These changes also directly address child poverty by putting more money in the pocket of parents," she said.
ACT's Karen Chhour said the increase was "an insult to middle New Zealanders who are working hard to get ahead but being squeezed in every direction to increase benefits today".
"If you keep socking it to hardworking taxpayers you’ll get less of them," she said.
In addition to the benefit increase the training incentive allowance, which can be accessed by sole parents on benefits, will expand up to degree level study.
Paid-parental leave rates goes up from $606.45 to $621.76 and private rentals must comply with healthy home standards within 90 days of any new or renewed tenancy.
Associate Housing Minister Poto Williams said that improving rental stock "will provide renters with better homes, which in turn will improve the health and wellbeing of New Zealanders."
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