The government is being accused of dismissing major funding issues for some community organisations that support people experiencing hardship.
Social Service Providers Aotearoa, which represents more than 200 non-governmental organisations, has welcomed increases to the main benefits in Budget 2021.
It says that will make a difference to whanau in need.
But its chief executive Clare Achmad says non-profit organisations like family centres, counselling services, charitable trusts and helplines, desperately need fair funding and fair pay.
She says they need about $630 million to keep providing help.
They will be asking for that in Budget 2022.
Benefit boost welcomed
A Tauranga social support service describes the boost to benefits as "like winning Lotto" for those in need.
Beneficiaries will get up to $55 more in their pockets each week, in a two-stage boost to income support payments.
Te Tuinga Whanau Support Services Trust director Tommy Wilson says the news from the Budget is cause for celebration for people on welfare - including the homeless.
"Those people don't get to celebrate much and I think more than just the $55, it just gives that korowai of hope to wrap around yourself as a homeless person cause it's been a pretty tough year for these guys too."
Wilson says the benefit increase will not solve the country's social woes, but it is a good start.
Rotorua Budget Advisory Service manager Pakanui Tuhura says the increase in benefits is warranted and will help address inequality.
"The increase in benefits I think is really warranted, the haves and have nots, the gap between them is becoming greater and greater and I think that's common knowledge."
Tuhura believes most beneficiaries will use the money wisely, such as paying off debt or covering the increasing cost of housing.
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