New Zealand's National Party leader and Prime Minister-elect John Key celebrates a landslide victory at the National election party during New Zealand's general election in Auckland  September 20, 2014.
New Zealand's National Party leader and Prime Minister-elect John Key celebrates a landslide victory at the National election party during New Zealand's general election in Auckland September 20, 2014. Reuters/Nigel Marple

New Zealand Finance Minister Bill English is crushing expectations that a major fund addressing child poverty will be announced in the budget. Prime Minister John Key had previously indicated after his election in 2014 that the focus of New Zealand’s Budget would be hardship.

In December 2014, Mr. Key said the Budget 2015 would help about 60,000 to 100,000 children in New Zealand who are living in hardship. However, English has warned that no new initiatives will be announced even if more money is allotted to tackle child poverty.

The comments of Mr. Key had brought hope to campaigners against poverty but English had reiterated there will be “no new initiatives for vulnerable children.” The budget was expected to reflect the government’s focus on proven and targeted programs.

Despite the finance minister’s earlier announcement, the budget contained a NZ$25 (AU$23) increase every week for beneficiary families. Radio NZ reports that it was the first non-inflation related rise in more than 40 years. The budget had caught opposition MPs by surprise.

New Zealand’s social development minister Anne Tolley said the increase would be help the country’s poorest families. “This will deliver some of the rewards of a strong economy directly into New Zealand’s lowest income households, and the 194,000 children with them,” added Tolley.

Labour’s social development spokesperson, Carmel Sepuloni, was not impressed with the budget since it was “not a plan.” The increase in funding would amount to $240 million a year but it came with certain conditions. The government’s Support for Children in Hardship bill was generally received lukewarm support.

The bill would also benefit single parents living who will be required to work for at least 20 hours a week once their youngest child had turned three years old. Greens MP Jan Logie said the party would support the bill because it is better than nothing but he believes the children deserve “a whole lot more.”

Meanwhile, the government has boosted the country’s health budget by an extra $1.7 billion. It is New Zealand’s biggest spending on any sector with a record $15.9 billion. English revealed an additional $320 million per year will go to the District Health Boards in the next four years, reports Stuff.

The new budget would also give $12.4 million to extend the Waitemata DHB’s Bowel Cancer Screening Pilot. Mr Key also fulfilled his election campaign promises when English allotted $76.1 million to aid hospices to expand their palliative care services. Health Minister Jonathan Coleman said the budget had showed a commitment to the growth of health services.

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