An Auckland community support group says the Government's cost of living package is a "step in the right direction" but it doesn't "reach the working poor".
It comes after the Government announced an increase to superannuation, main benefits and student supports as part of a "bread and butter support" package coming into effect on April 1.
Māngere Budgeting Services Trust chief executive Lara Dolan says it is a "small step" to relieve the hardship for whanau who are struggling.
"In reality the 7.2 percent increase is not going to help them much. According to Stats NZ the rises are so much higher than 7.2 percent," Dolan told Newshub.
On Monday, Stats NZ revealed in its food price index that food prices had increased 12 percent, the highest increase since 1989.
Dolan said the Government's increase will help, but fears those on minimum wage, or close to, will continue to struggle.
"It's only helping people on welfare benefits it doesn't reach the working poor," Dolan said.
"It's just not enough, it's just not enough. It's really hard out there."
Dolan told Newshub people who go to Māngere Burdgeting Services Trust for support are often in debt and their debt continues to grow to "make ends meet each day".
"The package does not provide any relief to the working poor."
Dolan would like to see the Govenment increase the Family Tax Credit, In-Work Tax Credit and lower GST for fruits, vegetables, meat, poultry and fish to ease the pressure.
