New Zealand scraps transport emissions reform to fund welfare increase

Clean car upgrade scheme among measures to be cut but PM Chris Hipkins denies government is abandoning climate ambitions

New Zealand’s government is dumping a range of high-profile reforms and emissions reduction measures as part of its promise to refocus on “bread and butter issues”, using the savings to introduce a billion-dollar boost to welfare payments to relieve cost of living pressures.

Chris Hipkins, the prime minister, announced on Monday that the government would roll out increases for retirees, students, unemployed people, and parents, ranging from $19 to $46.20 a week. The government estimates that 1.4 million New Zealanders will benefit.