Not all eligible families receiving promised fuel relief payment

Just 60 percent of families who are meant to benefit from a weekly fuel relief payment have received it to date.

In the wake of soaring petrol prices driven up by the Middle East war, the government announced in March that 157,000 families would receive weekly support for up to a year, or until the price of 91 petrol dropped below $3 per litre for four consecutive weeks.

Of those, 143,000 would get $50 a week, while 14,000 would get a lesser amount, via a boost to the in-work tax credit for low-to-middle-income workers with children.

But Inland Revenue data shows an average of about 95,000 families have been getting the payment each week since 1 April.

In total, 106,120 had received it at least once. Some families' circumstances change, so they could move in and out of eligibility week to week.

When Finance Minister Nicola Willis announced the relief, she said the families would benefit each week.

But a spokesperson for the minister told RNZ 157,000 families would benefit "if it remains in place for a full 12 months".

"Many will benefit for the entire year; some will benefit for shorter periods if their circumstances change," they said in a statement.

When the prime minister was asked about it during a media conference on Tuesday, Willis was overheard quietly telling Christopher Luxon: "I can talk to this, it's RNZ mischief making."

She stepped up to the microphones and said RNZ had misunderstood.

"We were clear and advised by IRD that up to 143,000 families would be eligible for the full payment, and another 14,000 or so for a partial payment.

"It's always been the case that how they claim that in-work tax credit is up to them."

That meant the number of families who had claimed it so far did not represent the total number that would eventually benefit, Willis said.

But that did not match the language she had consistently used when the support package was first stood up.

A 24 March press release announcing the boost said: "From 7 April, about 143,000 working families with children will get an extra $50 a week through a boost to the in-work tax credit. The boost will also expand eligibility to around 14,000 additional working families, who will receive the tax credit at an abated rate."

Another on 29 March said: "As announced last week, an increase to the in-work tax credit will result in 143,000 working families receiving a further $50 boost per week for up to a year, as part of the government's temporary, targeted support to help with fuel costs. A further 14,000 families will receive up to $50 per week."

By Budget Day - 28 May - the language used in her speech to Parliament slightly softened, saying the support would reach "up to" 157,000 families.

"As previously announced, the Budget funds a temporary increase to the in-work tax credit of $50 a week, supporting up to 157,000 low-to-middle-income working families."

20 percent of families likely to choose delayed payment

Inland Revenue expected 20 percent of eligible families - about 30,000 - would claim the payment as a lump sum at the end of the tax year (31 March), because households can choose whether they receive the in-work tax credit weekly, fortnightly, or in one big chunk.

RNZ asked Willis' office whether that reflected the government's intention, given it was meant to provide timely relief for those struggling with the price of fuel.

"When and how they choose to receive their payments is up to them. Feedback from families receiving the additional support has been very positive," the spokesperson said.

"The government is not going to discriminate against families on the basis of how they choose to receive their payments."

'Happy days' as fuel prices drop - Willis

Officials advised the national average price of 91 petrol was likely to drop under $3 a litre on Wednesday, Willis said.

"That means the clock starts ticking, if we see four consecutive weeks of fuel being below that $3 price, then that would trigger us being able to lift the temporary supports."

That would mean the country would have returned to normal fuel prices, she said, which would be a relief for struggling families and businesses.

"So I say, happy days when the fuel price is coming down."