NZ Confirms 2025 Cost of Living Payment: In 2025, the New Zealand government has rolled out a series of cost of living support measures designed to help Kiwis cope with inflation and rising daily expenses. From benefit increases and energy support to wage hikes and family tax credits, these changes are aimed at offering real relief where it’s needed most.
Whether you’re a pensioner, student, low-income worker, or part of a growing family, there’s something in this package that could give your budget a meaningful boost. Let’s break it all down so you know exactly what’s available—and how to get it.
NZ Confirms 2025 Cost of Living Payment
| Support Measure | Details | Eligibility |
|---|---|---|
| Annual General Adjustment | 2–3% increase in most government payments | Beneficiaries, superannuitants, students |
| Winter Energy Payment | Weekly support from May to October | NZ Super, Veteran’s Pension, Jobseeker Support |
| Working for Families | Tax credits for families with dependent children | Low- to middle-income families |
| Minimum Wage Increase | New minimum wage: $23.50 per hour | All minimum wage earners |
Understanding the 2025 Cost of Living Support
Annual General Adjustment (AGA)
Every year, New Zealand adjusts government benefit payments to keep pace with inflation. In 2025, most payments increased between 2% and 3% to reflect the higher cost of living.
Who benefits:
- Over 930,000 seniors receiving NZ Superannuation and Veteran’s Pension
- More than 400,000 main beneficiaries
- Over 47,000 students receiving allowances
- Around 70,000 others getting supplementary assistance
This means more money in the pockets of those who need it most, helping cover essentials like rent, food, transport, and utilities.
Winter Energy Payment
The Winter Energy Payment is back in 2025 to help households stay warm without stressing over electricity bills. It runs automatically from 1 May to 1 October each year.
Weekly payment rates:
- Single person: $20.46
- Couples and families: $31.82
You don’t need to apply—it’s paid automatically if you receive eligible support such as NZ Super, Veteran’s Pension, or other main benefits. If you’d rather not receive it, there’s an option to opt out.
Working for Families
Raising kids can be expensive. That’s where Working for Families comes in—a tax credit program designed to support families with dependent children.
Who qualifies:
- Parents or caregivers of children under 18
- Earning under the income threshold
- Living in New Zealand with tax residency
You can choose to get paid weekly, fortnightly, or as a lump sum at the end of the tax year. This flexibility helps families budget more easily and avoid debt during high-expense periods.
Minimum Wage Increase
As of 1 April 2025, the minimum wage has gone up to $23.50 per hour—a 35-cent increase from 2024. This puts more cash in the hands of thousands of workers across sectors like hospitality, retail, agriculture, and aged care.
While some say the minimum wage still falls short of the “living wage” (around $27.80), it’s a positive step forward and helps low-income workers better manage rising costs.
What Else Is New or Continuing in 2025?
Student Support Increases
Student Allowance and Student Loan Living Cost payments have also increased to align with the rising costs of rent, food, and transport for tertiary students. This helps more young New Zealanders afford full-time study without overburdening themselves with debt.
Rent Support & Accommodation Supplements
With rents continuing to climb, the government is also providing more support through accommodation supplements and income-related rent subsidies. These payments help low-income individuals and families in rental accommodation bridge the gap between income and housing costs.
Disability & Health Support Increases
If you receive support due to a disability or chronic illness, you may notice higher payment rates in 2025 for programs such as Supported Living Payment, Disability Allowance, or Child Disability Allowance. These increases aim to offset costs related to medical supplies, transportation, and special care.
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FAQs On NZ Confirms 2025 Cost of Living Payment
Q1: Do I need to apply for the Annual General Adjustment?
No. If you already receive a government benefit, your payments will automatically increase from April 2025.
Q2: Can I get both the Winter Energy Payment and Working for Families?
Yes. These programs are independent of each other. You can receive both if you meet the eligibility criteria.
Q3: How often are cost of living adjustments made?
Most benefits are adjusted annually in April to keep pace with inflation, though some supplements can be updated more frequently in response to policy changes.
Q4: What should I do if I think I missed a payment?
Contact the Ministry of Social Development (MSD) or Inland Revenue to check your account and update your details if needed.
Q5: I’m working part-time—can I still get Working for Families?
Yes. Your entitlement depends on household income, not whether you’re full-time or part-time. Many part-time working families qualify.
