An extra $25 a week will be a 'significant” boost for Tauranga's low-income earning families, according to the country's Social Development Minster.

And though an estimated $33million comes into Tauranga from the Ministry of Social Development each year, mostly through community investment, more can be done.

Social Development Minster Anne Tolley at Tauranga's Historic Village. Photos: Bruce Barnard.

As part of her a whistle-stop tour to Tauranga, Anne Tolley met with various social service agencies to discuss budget changes and changes the Ministry of Social Development is making to its social sector funding.

It is the Minister's first trip to the city since last month's budget announcements, where a number of initiatives aimed at reducing hardship were unveiled.

From April 1 next year, a $25 per week increase in benefit rates for families with children will be introduced along with more childcare support for low-income families.

Increased work obligations for sole parents on a benefit and an increase in Working for Families payments to low-income families not on a benefit will also be addressed.

This is part of a $790 million package aimed at reducing hardship among children in New Zealand's lowest-income households.

'You have a significant group of people, a lot seasonal workers, who earn a small amount of money,” says Anne. '$25 a week is going to make a difference for them.

'The mums that I have been talking to about this have all said it will be spent on their kids. It means kids going on school trips, buying more nappies, or having another set of clothes for the winter.”

Low income working families will receive $24.50, while benefit families will receive $25.

After visiting various social service entities including Work and Income and the Men's shelter, Anne says there is a distinct level of impatience for the government to push on with funding, focussing on 'people on the ground”.

The recent rollout of the Community Investment Strategy sees the type of contract change to a result-based approach.

Anne says this new long-term strategy for social service investment will deliver better results for at-risk children, young people and adults, along with more effective use of taxpayer's money.

'The government currently invests $331 million each year in this sector,” she adds, 'and we need a structured plan to ensure this funding is making a difference for our most vulnerable Kiwis, and that it is being invested in the right places.

'At the moment, there is little evidence of the effectiveness, or not, of funding in this sector.

'Up until now, most contracts have focused on the numbers of clients receiving services, rather than the effect that the service has on improving the lives of vulnerable people.

'We need to address this so that future contracts are built around positive results and evidence of what is working.”

She says this represents a culture change for the Ministry of Social Development and for providers.

Anne, along with Tauranga MP Simon Bridges, also met with Grey Power Tauranga and Western Bay of Plenty members discussing roading issues on State Highway 2, superannuation levels and possible rates reductions.