Housing costs punish children

Rising rents and mortgages are helping to push children below the poverty line, and the Government’s welfare efforts are yet to make a significant difference.

The latest child poverty numbers show a slight reduction in the number of children living below most poverty thresholds.

But there has been an increase in material hardship, with 4100 more children living without items such as two good pairs of shoes, and fresh fruit or vegetables in the home.

The numbers, released by Statistics

NZ yesterday, are the first to show any change since Prime Minister Jacinda Ardern set a threeyear, 70,000 child target — shrinking the 16.5 per cent of children in poverty to 10 per cent — and launched the $5.5 billion Families Package.

Ardern yesterday celebrated the numbers as ‘‘moving in the right direction’’, saying it showed her Government was on track to meet its child poverty targets.

Children’s Commissioner Judge Andrew Becroft said he had ‘‘cautious optimism’’ that the fortunes of New Zealand’s poorest children were changing.

‘‘You couldn’t say, ‘pass or fail’, on these results . . . I don’t think any New Zealander will be celebrating those figures,’’ he said.

One in eight children were counted as living in material hardship, defined through a series of indicators such as living in homes that lacked shoes, the ability to see a doctor, or the ability to pay power bills.

This measure registered a 0.4 per cent increase, to 13.4 per cent.

Ma¯ori and Pacific children were heavily represented in the figures, one in five children living below the median income (currently $1016 a week) before housing costs line. This compares to one in nine European children.

Nearly one in four Ma¯ ori children lived in material hardship.

The survey was taken between July 2018 and June 2019, and people

Judge Andrew Becroft Children’s Commissioner

were asked to provide their income level for the year prior, meaning the impact of the July 2018 Families Package will not be visible in the numbers for up to 18 months.

Treasury estimated the number of children in poverty will drop between 10 per cent and 12 per cent through Government efforts.

Ardern said the latest figures showed her Government’s Families Package, which has bumped up incomes through tax credits and targeted assistance, was beginning to lift children out of poverty.

‘‘But we know too that income is only part of the solution and that free lunches in schools are also helping kids to learn and easing pressure on families,’’ she said.

Becroft said the Government needed to spend its surplus and increase benefit levels.

But he acknowledged this would not stop rising housing costs pushing people into poverty.

‘‘We’ve allowed housing stocks to erode, we’ve never had more emergency housing costs or benefits granted, the waiting lists are high.’’

‘‘You couldn’t say, ‘pass or fail’, on these results.’’