Labour's plan for living costs and student loans, explained
Labour leader Chris Hipkins launched Labour's election campaign in South Auckland on 27 September. His main message was the cost of living.
Hipkins told the crowd Labour would focus on the cost of living. He said voters had a choice between a prime minister who would fight to get costs down, and a prime minister whose answer to rising prices was 'cry me a river' RNZ.
He kept coming back to that comment. "Is there anyone Christopher Luxon hasn't talked down to?" he asked. He said the remark made him angry. "It made me so angry… it still does." He added: "People aren't asking the prime minister to feel sorry for them. They're asking him to do his bloody job."
He spoke bluntly. He said "neo-liberal, trickledown economics does not work". That is the idea that helping those at the top will help everyone else. In response to National Party claims about Labour, he said: "It's bullshit."
The big new promise was on student loans. Labour would wipe 10 percent off eligible loan balances. That is like taking $10 off every $100 owed. It would cover current and future graduates who live in New Zealand for tax purposes, did not get fees-free study, and still owe money. Loans of $2000 or less would be wiped completely.
That plan would cost $583 million over the next four years, according to NZ Herald reporting on the launch.
Hipkins also talked about Labour policies on supermarkets, a cap on public transport fares and free GP visits. Labour has said before its public transport policy would save people about $25 a week on average, or more than $1,200 a year. Auckland commuters would save $30 a week and Wellington commuters would save $25 a week 1News.
National also launched its 2026 election campaign this weekend RNZ.
The broader context here is that voters have heard this before. Labour also campaigned on the cost of living in 2023. That campaign ran under the slogan 'In It For You', which Hipkins presented as a positive, forward-looking campaign to cut inflation and bring down the cost of living. In 2023, Hipkins started Labour's campaign by promising free dental care for everyone under 30.
For people who work in campaigns, the targeting will be the point to watch. The loan rules pick one group. Graduates who missed fees-free but still owe money in New Zealand, with small loans of $2000 or less cleared in full. It is small, costed, and aimed at young voters Labour needs to turn out. The message is tougher than in 2023, focused on Luxon and on who will act on food prices, fares and doctor visits.
