The Government deserves credit for doing what Labour failed to do - lifting benefit levels to deal with the extremes of child poverty, a Dunedin social service leader says.
However, a University of Otago academic says the rise is not enough to address child poverty.
The Methodist Mission director Laura Black, usually a staunch critic of the Government, was delighted with the Budget boost.
''It is a complete surprise to me.
''It will make a profound difference for a lot of families.''
Incomes would rise about $25 after tax each week for beneficiary families, and low-income working families would receive an increase through Working for Families.
Lifting benefits was a ''remarkable'' move by a centre-right Government, demonstrating National's dominance of the New Zealand political centre, Ms Black said.
''This is a hike in benefits that the Clark government never managed in nine years in power.
''For the clients that my agency deals with, this matters.''
She was less pleased with the start date of next April, as it was needed sooner.
She also disliked the more punitive approach to sole parents, who would be expected to return to work when their youngest child turned 3 instead of 5.
Entry-level jobs were sparse in Dunedin for sole parents returning to work.
Child and Youth Epidemiology Service director Dr Jean Simpson said the increase was a welcome acknowledgement that benefit rates were too low, but was not enough to seriously address child poverty.
''An additional $25 will be agreeable to the recipients, however, it is not enough to seriously address the major hardship that too many children are experiencing.''
The service produces an annual child poverty monitor.
She did not know how the $25 rise was determined, but it was unlikely to have been calculated on the basis of the actual cost of providing children with the necessities for good health.
