Budget 2015: What you need to know

Key points from the Government's 2015 Budget include a boost to benefit payments for families, a deficit and the end of the $1000 KiwiSaver kickstart.

Prime Minister John Key, left, and Finance Minister Bill English head into Parliament to deliver Budget 2015. Photo: RNZ / Alexander Robertson

The increase in benefit rates is the first in 43 years outside annual adjustments for inflation.

Finance Minister Bill English said the Government needed to target a narrower range of families to have an impact on those living in hardship.

The Opposition has accused the Government of helping the most vulnerable at the expense of "those just a couple of rungs up the ladder" and doing the "bare minimum" to address child poverty.

Review RNZ's live coverage of Budget 2015 - as it happened

New spending on child poverty

• Beneficiary families will receive an extra $25 a week, after tax, from 1 April 2016 - the centrepiece of a $240 million a year 'hardship reduction' package.
• The last time benefits were increased, apart from adjustments for inflation, was 1972.
• The Government says about 110,000 families will receive the increase in rates.
• Solo parents who receive a benefit will need to be available for work when their youngest child turns three - two years earlier than the current requirement.
• Non-beneficiary families with low incomes will receive increased payments through Working for Families, and more childcare support.

Surplus versus deficit

• The Budget is forecasting a $684 million deficit for 2014/2015, moving to a surplus of $176 million in 2015/2016, growing to $3.6 billion in 2018/2019.
• Economic growth is forecast to grow by an average 2.8 percent during the next four years.
• Average wages are expected to rise by $7000 to $63,000 a year by mid-2019.
• Unemployment is forecast to fall below 5 percent next year.

Ministers Steven Joyce (left), Paula Bennett and Bill English arrive at the lock-up at Banquet Hall, Parliament. Photo: RNZ / Alexander Robertson

Savings on KiwiSaver

• The $1000 kickstart for starting a KiwiSaver account is gone - from 2pm today.
• As RNZ Political Editor Brent Edwards put it today, Finance Minister Bill English generally tries to find savings to balance spending increases, which is where this likely fits in.
• The Government will still match savings up to $521 per person per year.

Child support penalties scrapped

• The Government will scrap $1.7 billion of penalties owed for child support.
• Revenue Minister Todd McClay said New Zealand's child support debt was currently $3.2 billion and rising, and only about $700 million of that was actual child support.
• He said scrapping the penalties would encourage parents to pay what they actually owed.

In studio: RNZ's economics correspondent Patrick O'Meara, left, host Susie Ferguson and political editor Brent Edwards. Photo: RNZ

Education: "Slim pickings"

• "Slim pickings", as RNZ Education Correspondent John Gerritsen put it - with no extra money for early childhood services or most tertiary institutions.
• Schools will get an operations funding increase of just 1 percent.
• However, as outlined in an earlier announcement, the Government will spend $243 million over four years for seven new schools and expansion at others.

Health: "Flat-lining"

• The Government will spend $76 million of new money on palliative care for the terminally ill over the next four years.
• It has already announced $98 million over four years for more elective surgery.
• There is no funding to take a bowel cancer screening programme in Auckland nation-wide - although funding for the scheme in Auckland will continue.
• Overall, year-on-year, the health sector budget has increased by $311 million.

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Labour leader Andrew Little responds to Budget 2015. Photo: RNZ / Alexander Robertson

Green Party co-leader Metiria Turei speaking today at Parliament. Photo: RNZ / Alexander Robertson

John Key and Bill English doing bridge run before the Budget is announced.

John Key (left) and Bill English on their way to announce the 2015 Budget.

Winston Peters responding to Budget 2015 "I see red".

Winston Peters responding to Budget 2015.

Andrew Little giving his 2015 Budget speech.

John Key responds to the Labour Party's Budget reply speech.

Andrew Little grilling Bill English's 2015 Budget in parliament house.

John Key responds to the Labour Party's Budget reply speech.

Te Ururoa Flavell giving his Budget 2015 speech.

This budget will be the seventh for Finance Minister Bill English (right - pictured with Steven Joyce on the way to the lock-up at Parliament's Banquet Hall).

Peter Dunne giving his 2015 Budget speech.

Bill English (left) and Steven Joyce handing out the Budget to parliament members in the house.

Steven Joyce (left) and Bill English leaving the 2015 Budget lock-up at Banquet Hall, Parliament.

Bill English giving the 2015 Budget in Parliament house.

Metiria Turei giving her 2015 Budget Speech to the house, parliament.

Steven Joyce (left), Paula Bennett and Bill English arriving at the 2015 Budget lock-up at Banquet Hall, Parliament.

Steven Joyce (left) and Bill English arriving at the lock-up - where about 160 journalists and analysts are waiting.

Bill English giving his Post Budget 2015 speech.

Andrew Little delivering his Post Budget 2015 speech.

Radio New Zealand's economics correspondent Patrick O'Meara, host Susie Ferguson and political editor Brent Edwards in the studio.

Labour leader Andrew Little - at a post-Budget stand-up with reporters at Parliament..JPG

Maori Party MP Marama Fox (left) and ActionStation director Marianne Elliott hongi after the delivery of a petition calling for a Budget to end child poverty.

15,000 signature petition calling for a Budget to end child poverty in front of parliament.

Bill English picking up the 2015 budget at the printers in Petone, Lower Hutt.

Fiscal Strategy Report 2015

Budget 2015 report

Bill English pre-budget speech in Wellington 1 May 2015.

John Key after pre-budget speech to Business New Zealand.