Financial mentors say they're seeing more working people seeking help as the skyrocketing cost of living takes hold.
It comes as the cost of living increases with Kiwis spending on average an extra $4000 to $5000 in the past 12 months on basics such as food, rent and fuel. The majority of the increase is fuel with an extra $678 a year at the pump on average.
Prime Minister Jacinda Ardern has admitted some Kiwis are doing it tough but refused to call it a crisis on Monday. While National leader Christopher Luxon is proposing tax bracket changes to help the situation.
Speaking with AM on Wednesday Bay Financial Mentors general manager Shirley McCombe said it is a crisis for many.
McCombe said beneficiaries used to be the main group seeking out her help but recently she's seeing more working people who are struggling.
"It's a perfect storm of issues that people are facing at the moment. It's not just the cost of food that is rising but petrol, pressure on the supply for housing. For people, particularly those on lower to middle incomes, it certainly feels like a crisis," she said
"We used to work predominantly with people who received benefits but that's starting to include more and more people who are working."
McCombe said Ardern's refusal to call it a crisis is invalidating for people who are really struggling.
"I think it's a little bit like talking about the environmental crisis, people want to hear that word because they feel like it's a call to arms. I guess when you're struggling and you're not hearing that validation it makes your struggle feel less real or less understood."
0800 Hungry Warehouse Supervisor Nicky Bensemann agreed, saying for many it is absolutely a crisis.
"I don't think she [Ardern] has an understanding of what's really happening out there. She's really got to step into other peoples' boots and see what's going on, it is really affecting people."
Bensemann says she's also seeing a wider range of people seeking out her services.
"It's not even just working poor, you're finding the pensioners are really, really struggling and they shouldn't be in this position, you're finding people that were in their own homes and now they're in emergency accommodation.
"There is something going on out there in society and a lot of people are struggling."
But Bensemann and McCombes both said tax cuts wouldn't be enough to fix the problem.
Speaking with AM on Monday Ardern acknowledged the cost of living was increasing but stopped short of calling it a crisis.
"I wouldn't describe it that way, there is an impact that people are feeling undeniably but I wouldn't describe it in that way."
Ardern said while things are bad now, they are expected to improve soon. She also highlighted wage growth and increases to the minimum wage and family tax credits under her Government.
