Labour Promises Real Action on Cost of Living Crisis Ahead of 2026

The Labour Party has committed to addressing the cost of living crisis as it prepares for the upcoming election in 2026. This pledge comes in the wake of significant policy changes implemented by the new government, which have drawn criticism from Labour representatives, particularly from Megan Woods, who is vocal about the rapid undoing of previous Labour legislation.

In recent remarks, Woods expressed her astonishment at the extent of the changes made by the current administration. “I don’t think that we have ever seen a government come in and undo things for the sake of it because the other guys did it,” she stated. Woods highlighted the speed and volume of these alterations as unprecedented, noting that much of the new government’s early efforts have focused on reversing previous policies rather than proposing innovative solutions.

One notable reversal that has sparked debate is the lifting of the ban on oil and gas exploration. Woods criticized this decision as “performative,” pointing out that no new offshore exploration permits had been issued since the early 2000s prior to Labour’s initial ban. She emphasized that such moves do not address the pressing concerns of New Zealanders, who are primarily worried about economic stability and living costs.

The Labour Party’s approach to mining has also come under scrutiny. Woods clarified that while Labour is not anti-mining, the party had initiated work on a critical minerals strategy. She expressed concern that fast-tracking mining projects without building community support could lead to long-term challenges. “I think a lot of mining companies know very well that critical to their ability to operate is community support and a social licence,” she explained.

Woods, who chaired Labour’s 2023 election campaign, acknowledged that the party faced a significant defeat, largely due to a national desire for change. As Labour gears up for the next election, it has introduced a new finance spokesperson, Barbara Edmonds, alongside a revamped capital gains tax policy aimed at connecting more effectively with voters.

In light of the loss, Labour leader Chris Hipkins vowed to reassess the party’s policies and actively listen to the electorate’s needs. Woods emphasized that Labour is committed to developing policies that resonate with the challenges faced by everyday New Zealanders, specifically focusing on managing household budgets, securing affordable housing, and ensuring job stability.

“You will hear a lot about real action on the cost of living in 2026,” Woods assured, indicating that Labour’s future strategies will prioritize these critical issues. The early announcement of tax policy is part of this effort to provide clarity on how Labour plans to support households amid rising living costs.

As election observers anticipate a competitive race in 2026, Woods described the previous elections as “high-tide” events, suggesting that the dynamics of the closely contested 2017 election may serve as a more accurate predictor of the upcoming contest. She noted the importance of voter turnout, particularly among traditional Labour supporters who may have abstained in the last election.

“I was doorknocking in Wigram over the weekend, and people would say, ‘yeah I will vote for Labour this time,’ but when asked who they voted for last time, the answer was often, ‘I didn’t,’” Woods recounted. This highlights the challenge Labour faces in re-engaging its base and motivating voters to participate in the electoral process.

As the Labour Party lays the groundwork for its campaign, the focus on tangible solutions to the cost of living crisis may prove vital in winning back the trust of New Zealanders and securing a successful outcome in 2026.